Meanwhile, Meta's latest AI chatbot, Llama 3, has been well-received, but JPMorgan analysts warn of a potential slowdown after the first quarter. Microsoft is expected to triple its GPU count by 2024, with Bank of America maintaining a positive outlook for the company's earnings release. Amazon is also expected to perform well, with JPMorgan analysts predicting that Amazon Web Services will be a bright spot for the first quarter.
Key takeaways:
- Wall Street is preparing for the first-quarter results of mega-cap firms, with a particular focus on tech giants and their advancements in artificial intelligence.
- Tesla is facing investor stress due to a drop in vehicle sales, controversy over Elon Musk's pay package, and recent layoffs. The company's stock is down 40% year-to-date.
- Bank of America is optimistic about Alphabet's earnings, predicting a 13% upside potential above Wall Street's growth estimates, largely due to strong YouTube performance.
- Microsoft is expected to triple its GPU count in 2024, aiming to stack up 1.8 million AI chips by year-end, which has led to positive sentiments from Bank of America ahead of the company's earnings release.