Big Tech is likely to deliver blockbuster earnings this week and drive a powerful rally through the remainder of the year, predicts Nigel Green, CEO of global financial advisory giant deVere Group.
Apple, Amazon, Alphabet, Microsoft and Meta Platforms are all scheduled to report third-quarter results in the coming days.
Futures linked to the Nasdaq and S&P 500 advanced ahead of the releases, as investors positioned for stronger profits from the world’s largest technology firms.
Nigel Green comments: “I expect these earnings to come in ahead of forecasts.”
“Revenue momentum from AI, cloud computing and digital advertising appears to be building again.
“With inflation cooling faster than anticipated and policy easing in sight, conditions now look the best they’ve been for these firms in several years.”
He adds that this week’s earnings may set the tone for global markets into the year-end.
“If Big Tech delivers, I expect the rally to broaden rapidly. These companies remain the heartbeat of global growth — they are not just weathering a higher-rate environment; they’re emerging stronger from it.”
US inflation data released last week came in softer than expected, fuelling expectations of a Federal Reserve rate cut at its October 29 meeting.
Market pricing currently shows around a 95-to-98% probability of a reduction of about 25 basis points, which would take the target range toward 3.75 to 4%.
Nigel Green says such a move would add fuel to the momentum. “If the Fed cuts as the market expects, I anticipate liquidity will return quickly to growth assets. These companies are first in line to benefit.
“They have fortress balance sheets, global reach, and exposure to every structural growth theme that matters, such as AI, automation, cloud and digital infrastructure.”
He predicts that strong earnings could trigger a rapid rerating of the sector.
“If results outperform, the rotation back into technology could be swift and intense.”
Nigel Green expects a ripple effect across regions and asset classes. “Positive surprises from Big Tech tend to lift sentiment far beyond Silicon Valley. Semiconductor and component suppliers in Asia, especially Japan, South Korea and Taiwan, would likely see inflows as investors reposition for expanding demand across the tech supply chain.”
He believes this optimism could also extend to digital assets. “Bitcoin’s climb above $115,000 reflects improved sentiment toward growth-linked assets. If Big Tech earnings and a Fed rate cut reinforce each other, I expect Bitcoin and other alternatives to gain further as investors diversify across risk assets.”
Looking ahead, the deVere CEO forecasts that Big Tech will carry the broader market to fresh record highs before year-end.
“My projection is that both the Nasdaq and S&P 500 will end the year at new peaks. If guidance from these firms is as strong as I anticipate, their combined market capitalisation could expand considerably.”
He says this next phase is being built on solid foundations. “Over the last two years, these companies have cut costs, streamlined operations and invested heavily in AI efficiency.
“This discipline is now translating into higher margins. I expect forward guidance to reflect that strength.”
Nigel Green concludes: “My prediction is that Big Tech will exceed expectations this week, will rally further towards the close of the year, and with them will push global indices to new highs by the end of 2025.