Buckle up! The Q3 financial reports of growth tech stocks will be released soon.

The new season of financial reports is kicking off, with next week's tech stocks starting with tesla expected to continue to be the focus of investors.

With the Fed's rate cut "shoe dropping" and the strong rebound of technology stocks, the s&p 500 index recently hit another all-time high. At the same time, this year's tech stock financial reports and market reactions show that investors are harder to please.

Can large tech stocks sustain the previous momentum? This quarter's financial reports will be a key driving factor.

NVIDIA (NVDA.US): Q3 growth may slow down, the market is focusing on AI investments and Blackwell.

As a giant in the ai chip industry, nvidia's latest financial report is still set to capture market attention.

Some views suggest that considering the expensive stock price and the high base of the same period last year, nvidia's Q3 performance may face challenges.

In the last three quarters, nvidia's total revenue soared 206% to $18.1 billion, while datacenter revenue increased by 279% to $14.5 billion.

In addition, in the last quarter's financial report, nvidia's revenue guidance for the three quarters was $32.5 billion, in the middle of the expected range ($32 billion-$33 billion), falling short of the highest expectations, also signaling a potential slowdown in performance growth.

Apart from financial data, some analysts have stated that investors will also closely monitor nvidia's AI investment scale and the latest news on the Blackwell chip.

In an interview on October 3rd, nvidia's founder and CEO, Huang Renxun, stated that the upcoming Blackwell chip has been fully produced and the demand is "crazy", sparking market enthusiasm once again and pushing the company's stock to a historic high for the first time in four months.

Since the beginning of this year, nvidia's stock price has cumulatively risen by over 181% to $135.72 per share, potentially surpassing apple to become the largest listed company by market cap.

Capital expenditures are expected to continue to surge, with Wall Street still bullish on the potential of AI.

In addition to growth tech stocks themselves, investors are also closely monitoring capital expenditures, especially AI investments.

Currently, Wall Street expects capital expenditures of technology giants to continue to surge.

According to Visible Alpha, Wall Street expects the total capital expenditures of Microsoft, Alphabet, Meta, and Amazon, the four technology giants, to increase by 56% to over $60 billion by the end of the third quarter.

By the fourth quarter, Wall Street expects the aforementioned capital expenditures to once again experience a double-digit significant growth, pushing the total annual expenditure to around $231 billion, about 49% higher than in 2023.

According to FactSet's estimates, Apple's R&D expenses this quarter are expected to reach a new record of $31.5 billion, nearly 6% year-on-year growth, while revenue growth is expected to be less than 2%.

Morgan Stanley stated in a report earlier this month:

"By 2025, cloud capital spending will be equivalent to the actual total spending of the entire Apollo Moon landing program."

Colin Sebastian of Robert W. Baird believes that investors have not fully taken into account the current surge in capital expenditures, which will lead to increased depreciation expenses in the future. He expects the revenue of Alphabet, Amazon, and Meta to be 1% to 4% lower than Wall Street's general expectations by the fourth quarter.

Although AI has not yet truly been commercialized, Wall Street remains largely bullish on the potential of AI technology. A survey conducted by Morgan Stanley on over 400 companies found that about 40% of respondents using generative AI solutions reported exceeding expected investment returns.

This article is reprinted from "Wall Street News", author: Li Xiaoyin; edited by Zhu Tong Finance, Liu Jiayin.