One of the seven tech giants in the US stock market, Tesla ($Tesla Motors, Inc. TSLA$ ), is set to release its earnings report after market close on October 18th (Wednesday), marking the climax of the entire Q3 earnings season. In the following weeks, more top tech stocks will announce their earnings. Google ($Alphabet Inc. Class A GOOGL$ / $Alphabet Inc. Class C GOOG$ ) and Microsoft ($Microsoft Corporation MSFT$ ) will report their earnings after market close on October 24th, while Meta ($Meta Platforms META$ ) and Amazon ($Amazon.com, Inc. AMZN$ ) will announce theirs after market close on October 25th and October 26th, respectively. Apple ($Apple Inc. AAPL$ ) and NVIDIA ($NVIDIA Corporation NVDA$ ) will follow with their earnings announcements after market close on November 2nd and November 21st.

Investors should closely monitor the investment opportunities around the earnings disclosures and plan their trading strategies in advance. Combining the earnings expectations of Tesla, Apple, and the other seven major tech stocks, as analyzed by Bloomberg analysts, M+ Global has compiled the following infographic for further details:

As concerns grow over sustained inflation, rising interest rates, and slowing consumer demand, investors are looking to the latest earnings from US tech giants for reassurance.

Gary Bradshaw, Portfolio Manager at Hodges Capital Management, emphasizes the significance of delivering strong earnings for large-cap tech stocks, as it can greatly enhance confidence. The overall expectation is that earnings will perform well, and mega-cap tech stocks have the ability to lead the market in the year-end quarter.

These tech giants, which previously underwent significant layoffs to reduce costs, are now poised to achieve profit levels similar to those of two years ago. The market widely anticipates that these large tech stocks will help offset the weak performance of sectors such as energy and healthcare.

Apple, Microsoft, Google's parent company Alphabet, Amazon, and NVIDIA, these five tech giants, collectively account for about a quarter of the total market capitalization of the S&P 500 index and have contributed a significant portion to the 13% increase in the S&P 500 index this year. The earnings for these five tech giants in the third quarter are expected to grow an average of 34% compared to the same period last year.

However, it is important to note that many anticipated positive developments may have already been priced into the market, posing obstacles to further profit-driven market gains. With the market's frenzy over AI concepts, NVIDIA's stock price has more than doubled this year, while Google and Amazon have seen gains of over 50%, and Apple and Microsoft have approached a 40% increase. Kim Forrest, Chief Investment Officer at Bokeh Capital Partners, believes that these companies face pressure to deliver results due to their expensive stock prices.

Furthermore, investors are also concerned about the high valuations of large-cap tech companies. Apple and Microsoft have price-to-earnings ratios of 27 and 29, respectively, far exceeding their average levels of the past decade. Marko Kolanovic, Chief Market Strategist at JPMorgan, warns investors to be prepared for a potential 20% drop in the S&P 500 index. Kolanovic states that companies such as Apple, Amazon, Meta, Alphabet, NVIDIA, Tesla, and Microsoft have historically grown in a high-interest-rate environment, making them more susceptible to significant losses.