Investors are eager to see if Big Tech can prove that their massive AI spending is paying off during this earnings season. The market continues to rise amid tariff uncertainty, with eyes on tech earnings for clues on the momentum. Big Tech’s AI investments have increased significantly, sparking debate on future spending. Competition in the AI space is fierce, and investors are looking for signs of accelerated adoption. Bank of America notes an uptick in AI mentions during earnings calls, predicting software monetization to take off in 2026. The pressure is on Big Tech to show strong software margins during this crucial earnings season. First-quarter earnings were strong despite tariff uncertainties, with AI expected to drive S&P 500 earnings growth. Tariffs are adding pressure on the AI trade, with concerns about import costs impacting company margins. Jeremy Siegel emphasizes the need for firms to demonstrate AI use cases to shield against tariff headwinds.

Read more at Yahoo Finance: Here are investors’ burning AI questions with tech earnings around the corner