Earnings season is upon us, and the story — once again — is artificial intelligence. But this time, Wall Street isn’t interested in PowerPoint slides and lofty vision statements. The market wants to see cold, hard revenue. And it’s not just about who’s talking a good AI game. It’s about who’s cashing in.
Daniel Newman, CEO of The Futurum Group and a sharp observer of all things tech and AI, put it best in a recent appearance on CNBC: “The AI narrative is maturing, and this earnings season is the test. Not just for vision, but for execution.”
Let’s take a look at where the Mag 7 and broader Big Tech stand as the lights come up on Q2 earnings — and which players are best positioned to prove AI isn’t just smoke, but real financial fire with the help of Newman’s insight.
Alphabet: From Bard Blunders to AI Brilliance
Newman didn’t mince words on Alphabet. “They’re looking really well positioned,” he said. “They’ve built their own infrastructure, their own chips, and they’re training their own models.”
After early stumbles with Bard that sparked existential fears about Google Search, the company has recalibrated. Now, with AI Overviews showing up in billions of search results monthly and a vertically integrated AI stack that boosts both performance and margin, Alphabet seems ready to silence its skeptics.
Newman sees real upside: “Even with the recent run-up, there’s a lot to be optimistic about. You’ve got YouTube, you’ve got Waymo — Google actually has the tech.”
And he’s not wrong. With YouTube rapidly replacing traditional television and Google Cloud surging in enterprise adoption, Alphabet may finally be translating its AI chops into durable growth.
Microsoft: Steady as She Goes
Microsoft has largely avoided the stumbles some of its peers have faced. Azure continues to grow, bolstered by the integration of OpenAI models into its stack. The company’s strong enterprise foothold and methodical execution keep investors confident.
But even here, the pressure is on. Analysts want to see that AI services like Copilot aren’t just generating interest, but revenue. Look for clues in Microsoft’s cloud margins and commentary on adoption metrics.
Meta: All In and Hiring
If Alphabet is the quiet contender, Meta is the high-stakes gambler. Newman highlighted Meta’s aggressive posture: “They’re doing the right thing — $100+ million packages to lure top researchers, taking them from OpenAI and Apple.”
Meta’s infrastructure spending and commitment to open-source AI like LLaMA signal a long-term vision. But the real question is whether Meta can turn those bets into bottom-line results. With digital advertising still its core business, Meta will need to show how AI is optimizing targeting, engagement, and ultimately revenue.
Apple: Risk or Ruin?
When the topic turned to Apple, Newman didn’t hold back.
“They lost their top researcher. Apple Intelligence is already on iteration three or four and still feels like they have no confidence,” he said.
The biggest concern? Apple hasn’t built its own large-scale models or AI infrastructure. Siri remains a punchline in AI circles. And while competitors are vertically integrating, Apple appears to be duct-taping solutions together.
“They’ve spent $600+ billion on buybacks,” Newman said, “but they can’t build the kind of technology that made them the company they are today?”
While the Apple install base remains loyal, and defection isn’t imminent, Newman warns this is a “lagging risk.” In his words, “Instead of being top of the Mag 7 list, they’re slowly drifting down. There’s a trillion-dollar gap between them and Nvidia now.”
Tesla: Volatile Vision
Then there’s Tesla. A company with enormous potential — and a founder who courts chaos.
“Elon is back in founder mode,” Newman said. “The valuation is eye-watering, but the upside is exponential — if he says the right thing.”
Newman raised real concerns about Tesla’s fundamentals: Falling revenue, shrinking EPS and an energy business that’s still ramping. But it’s the broader Elon ecosystem — Tesla, SpaceX, xAI — that has investors dreaming.
“It’s all a big story that comes together. But you’ve got to have the appetite for discomfort,” he warned.
The Market’s Mood: AI is Real, But so are Risks
Here’s the bottom line: The AI wave is real. But so is the demand for results. It’s not enough to simply say “AI” in every earnings call and expect a valuation bump. The market is asking tougher questions: Where’s the ROI? Where’s the margin expansion? Who’s shipping products?
Newman captured the investor mindset well: “We’re in the part of the cycle where the strongest players are pulling away. If you’re lagging on infrastructure, talent, or execution, the market won’t wait.”
That’s a wake-up call for Apple. It’s validation for Alphabet and Meta. And it’s a challenge to the rest of the field.
Final Thoughts
At Techstrong.ai, we’ve been tracking this AI megatrend from its infancy. But what we’re seeing now is a shift: From hype to harvesting.
The winners of this earnings season will be the ones who can show that their massive AI investments are starting to pay off — not in 2026, but today. This is the beginning of the “Show Me” phase of AI. And some of the biggest names in tech may not like what the market demands to see.
We’ll be watching closely — and so will the rest of the world.
