Tech earnings show split between discipline and excess: deVere CEO

Press Release by deVere Group

Big Tech’s latest earnings season has exposed a defining divide at the heart of the technology sector, affirms the CEO of one of the world’s largest independent financial advisory organizations.

The analysis comes after Big Tech’s earnings this week painted a mixed but telling picture of the market’s evolving priorities.

Nigel Green, chief executive of deVere Group comments: “Investors are rewarding companies demonstrating discipline and punishing those overextending on promises of artificial intelligence-driven growth.”

Alphabet and Amazon delivered standout quarters, strengthening their positions as the two most credible beneficiaries of the AI revolution.

Apple produced solid results, though regional challenges remain, while Meta and Microsoft faced a sharp market backlash as investors grew wary of unchecked spending.

Tesla disapponted with weaker earnings, and Nvidia’s next test will come in November.

The CEO of deVere Group says this earnings cycle marks a turning point in investor psychology.

“The market is no longer cheering companies that spend endlessly on AI in search of future gains,” he notes.

“It’s favouring those proving they can harness AI profitably and efficiently right now.”

Alphabet’s results were particularly impressive. The Google parent posted quarterly revenue above $100 billion for the first time, powered by a 34% surge in Google Cloud and a 13% rebound in advertising.

Shares hit record highs following the announcement as investors recognised the strength of its monetisation strategy. Google has emerged as one of the few firms turning the cost of AI infrastructure into sustained revenue growth.

Amazon’s figures reinforced this trend. The group reported revenue of around $180 billion, up 13% year-on-year, and profit growth of about 40%.

Amazon Web Services expanded by roughly 20% to $33 billion despite a global outage earlier in the quarter, proving that demand for AI-enabled cloud capacity remains resilient. Investors responded positively to Amazon’s ability to manage growth while improving margins — a sign that its focus on operational discipline is paying off.

Apple’s report reflected a different kind of strength. Revenue climbed 8% to $102.5 billion, driven by record services income of $28.7 billion. Its core iPhone division performed broadly in line with expectations, but China revenue fell about 4%. The company’s strategic shift toward high-margin digital services continues to offset hardware maturity, helping sustain double-digit earnings growth.

Shares rose roughly 5% after the results, showing that markets still view Apple as a dependable cash generator with strong brand durability.

The most notable market reactions came from Meta and Microsoft. Meta’s stock dropped more than 10% after it announced plans to raise capital spending to as much as $72 billion to fund data centre and AI expansion.

Microsoft’s shares slipped about 3% despite solid revenue and profit growth, as investors focused on the drag from its partnership with OpenAI. Both results were reminders that even well-capitalised firms are not immune to pushback when their spending appears excessive.

Tesla’s report added to the cautious tone. The electric vehicle maker’s earnings came in below expectations amid weaker automotive margins and soft global demand. While Tesla remains a critical player in the AI and robotics story, its results showed how rising costs and slower deliveries are challenging growth assumptions across the EV sector.

Nvidia, the seventh of the group, will report on November 19. Its results are expected to be a bellwether for the entire AI complex after a year of record-breaking valuation gains.

However, earlier this week, Nigel Green commented that “Nvidia’s climb toward $5 trillion exposes the gap between belief and proof in the AI boom. The tech is unstoppable, but the valuations are unsustainable without profit to back them.

“This is the moment for investors to stay engaged, stay selective, and focus on where AI’s promise turns into performance.”

He continues that the market’s reaction this week reinforces that point. “Investors are now demanding results, not just promises,” he explains.

“The extraordinary enthusiasm around AI is giving way to a more pragmatic approach. Markets want evidence that these investments translate into measurable returns.”

Nigel Green concludes: “This week’s results confirm that Big Tech remains the heartbeat of the global equity market.

“But investors have become more selective. Growth alone is no longer enough. The winners will be those applying AI to enhance earnings today, not those betting on uncertain payoffs years ahead.”

About deVere Group

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of offices around the world, more than 80,000 clients, and $14bn under advisement.