The Q4 earnings reporting season is in full swing, with more than 300 companies set to release results, including 102 S&P 500 constituents. The “Magnificent 7” are expected to show Q4 earnings growth of 16.9% on 16.6% higher revenues compared to the previous year.

Microsoft, Meta Platforms, and Tesla will report earnings after the market closes on Jan. 28, followed by Apple on Jan. 29. Among the four companies, Meta has shown notable weakness, while Apple, Microsoft, and Tesla have performed relatively better.

Alphabet is expected to report on Feb. 4, with Amazon.com following on Feb. 5. Amazon has seen just 2.7% gains over the past year, while Alphabet shares have surged by 71.3% in the past year.

Investor concerns around Microsoft, Meta, and Apple stem from their positioning in artificial intelligence (AI). Microsoft and Meta are big spenders in AI, while Apple’s limited visibility in the space has raised questions about its long-term competitiveness.

Apple is expected to post earnings of $2.65 per share on revenues of $137.5 billion, indicating growth of 10.4% and 10.6% respectively year-over-year. Analysts are growing more confident ahead of the release, with estimate revisions trending higher in recent weeks.

Microsoft is projected to deliver earnings of $3.88 per share on revenues of $80.2 billion, with growth of 20.1% in earnings and 15.2% in revenues year-over-year. There have been no analyst estimate revisions for the quarter in the past 7 and 30-day periods.

Meta Platforms is expected to report earnings of $8.32 per share on revenues of $58.6 billion, showing growth of 3.7% and 21.1% respectively year-over-year. Earnings estimates for the quarter have been revised upward in the past 7 days.

Tesla is projected to deliver earnings of $0.45 per share on revenues of $25.1 billion, suggesting a loss of 38.4% in earnings and 2.3% in revenues year-over-year. The analyst estimate revision for the quarter has declined over the past 30 days.

Alphabet is expected to post earnings of $2.58 per share on revenues of $94.7 billion, calling for growth of 20% and 16% respectively year-over-year. Amazon is likely to report earnings of $1.97 per share on revenues of $211.5 billion, with growth of 5.9% and 12.6% respectively year-over-year.

The Magnificent 7 group is currently trading at roughly 126% of the S&P 500 valuation multiple, representing a 26% premium to the broader market. This indicates elevated valuations but not extreme levels historically.

Investors looking to tap into the AI boom can consider ETFs like Roundhill Magnificent Seven ETF, MicroSectors FANG+ ETN, Vanguard Mega Cap Growth ETF, and Invesco S&P 500 Top 50 ETF. The pure-play Mag-7 ETF has added 1.8% year-to-date, in line with the S&P 500.

Read more at Nasdaq: What Lies Ahead of Mag-7 Earnings? ETFs in Focus