Zacks.com has released a list of companies expected to issue earnings surprises, including Amazon, Alphabet, and Nvidia. Amazon missed EPS estimates but is performing well overall. The market reacted negatively to Amazon’s high capital spending budget for 2026, leading to concerns about AI’s impact on earnings. Amazon plans to spend $200 billion on capital expenditures in 2026.

Alphabet also faced a negative market reaction after its quarterly release, with Amazon’s ‘punishment’ reflecting investors’ shock at AI plans. Amazon and Alphabet both saw strong growth in their cloud businesses, with Amazon’s AWS revenues increasing by 24% in Q4 2025. Google Cloud revenues rose by 48% in the same period. Microsoft’s cloud business lacked momentum compared to Amazon and Alphabet.

Nvidia is the only Mag 7 member yet to report Q4 results, expected to show a 70.8% increase in EPS and a 66.7% increase in revenues from the same period last year. The Mag 7 group is expected to bring in 26.6% of all S&P 500 earnings in 2026. Q4 earnings for S&P 500 companies are up 14.1% from last year.

Zacks has named a #1 semiconductor stock poised for growth in the AI, Machine Learning, and IoT markets. With an expanding customer base and strong earnings growth, the company is positioned to capitalize on the semiconductor market’s projected growth from $452 billion in 2021 to $971 billion by 2028. Global semiconductor demand is expected to increase significantly in the coming years.

Read more at Nasdaq: Amazon, Alphabet and Nvidia are part of Zacks Earnings Preview