This article first appeared on GuruFocus.

Big Tech results this week could shape U.S. stock trends heading into year-end. Microsoft (MSFT), Alphabet (NASDAQ:GOOGL), Meta (NASDAQ:META), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) are set to release quarterly earnings on Wednesday and Thursday, together representing about a quarter of the S&P 500.

Investors are monitoring both revenue and profit trajectories, while looking for early signals that the sector’s massive AI investments may start contributing meaningfully to earnings. The surge in AI spending has fueled the market rally over the past three years, though questions remain about the timing of returns.

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So far this earnings season, roughly 85% of S&P 500 firms have exceeded forecasts, the strongest showing in four years. That performance has eased concerns over credit risks and trade frictions, lifting the index back toward record levels after a recent dip.

The group known as the Magnificent Seven, including Nvidia (NVDA) and Tesla (TSLA), has accounted for nearly half of the S&P 500’s 15% gain this year. Bloomberg projects that Microsoft, Alphabet, Amazon, Meta, and Apple will spend about $360 billion on capital projects this year, increasing to around $420 billion next year, mainly for AI-related infrastructure.

Profit growth for the group is expected to slow to roughly 14% in Q3 from 27% in the prior quarter, still above the broader market pace.