Key points from the Q4 earnings season show a positive trend in estimate revisions, with total earnings up +12.6% and revenues up +8.2% for 236 S&P 500 members. Tech sector earnings are up +16.6% for Q4, with 92.7% beating EPS estimates. However, Gartner’s weak guidance led to a -71% stock decline.

While Tech sector earnings remain strong, some software stocks, like Gartner, are struggling. Concerns over AI-centric disruption weigh on the sector. Despite current worries, there have been no consistent downward revisions in earnings estimates. Overall, the Tech sector’s positive trend remains strong, accounting for 36.7% of S&P 500 earnings.

The AI industry is set for a second wave of growth, with potential wealth creation for investors. Zacks’ AI Boom 2.0 report highlights 4 under-the-radar companies to watch. The report offers insights on the next phase of AI evolution, providing opportunities for investors to capitalize on this emerging trend and new market leaders.

Read more at Nasdaq: Earnings Outlook Improves: A Closer Look