Alphabet, Intel results in focus for AI trade as US earnings rev up
By Lewis Krauskopf
Sat, July 18, 2026 at 2:47 AM GMT+5:30
4 min read
- ^GSPC
-1.01% - GOOG
-2.17% - INTC
-2.00%
NEW YORK, July 17 (Reuters) – U.S. corporate earnings season gathers steam in the coming week as Alphabet and Intel are set to offer updates that could sway the market-leading AI trade amid high profit expectations and uncertainty over the Iran war
The S&P 500 skidded on Friday to post a weekly decline, dragged down by a steep pullback in high-flying semiconductor shares. Still, the benchmark S&P 500 remained up about 9% in 2026, and stood 2% below its early June record high
Increasing expectations for profit strength this year have provided bedrock support for investors’ enthusiasm for stocks
Now they are counting on the second-quarter earnings season, just under way, to show the corporate profit engine is still humming along, with S&P 500 earnings projected up a whopping 26% in the period
“Headlines continue to raise anxiety and leave investors scratching their heads wondering why the market continues to reach new heights,” said Michael Arone, chief investment strategist at State Street Investment Management. “And the reason it does is because the fundamentals have been resilient, and the earnings continue to be outstanding.”
ALPHABET IN FOCUS FOR AI SPENDING VIEW
Alphabet’s quarterly report on Wednesday will command Wall Street’s attention. The Google parent, the third-largest U.S. company by market value at $4.2 trillion, can jostle indexes as one of the heavyweight “Magnificent Seven” stocks that have driven U.S. equities higher for much of the bull run that has lasted nearly four years
The company is also an AI “hyperscaler,” spending billions of dollars to build out data centers and AI infrastructure. Such AI capital spending has been at the heart of this year’s market rally, driving huge gains for semiconductors and other companies benefiting from the massive outlays
If Alphabet announces “any type of pullbacks with respect to the spending that they’re forecasting around AI, you could see ripple effects across the entire AI ecosystem,” said Kevin Mahn, president and chief investment officer at Hennion & Walsh Asset Management
Results from semiconductor firms Intel and Texas Instruments take on particular significance due to the stunning rally this year in chip stocks. The trade faltered in recent weeks, with the Philadelphia SE Semiconductor Index ending on Friday down over 20% from its late-June record high, confirming it has been in a bear market
Still, the index remains up more than 60% in 2026; Intel shares have soared over 160%, while Texas Instruments has gained 60%
