Apple is set to report its first-quarter earnings on Thursday, January 28, 2026, with investors keenly awaiting details on its AI strategy and iPhone sales. Analysts project strong revenue of $138.4 billion and earnings per share of $2.68. The company saw robust sales for its iPhone 17 series during the holiday quarter, boosting its global smartphone market share to 20% from 18% the previous year. A key focus is Apple's strategic partnership with Google, integrating Gemini AI into Siri to enhance features without incurring full infrastructure costs.
Beyond Apple, the AI sector continues to see significant investment and development. Nvidia recently invested $2 billion in CoreWeave, expanding their partnership to accelerate the development of over 5 gigawatts of AI data centers by 2030. CoreWeave's valuation has surged to $19 billion, though it faces class-action lawsuits regarding its ability to scale infrastructure. Nvidia also emphasizes the role of small-language-models for cost-effective AI operations.
Other major players are also making strides. Intel's stock has risen almost 110% in the last year under CEO Lip-Bu Tan, driven by a clear AI strategy that includes a partnership with Nvidia for custom AI accelerators and the release of new products like the Crescent Island data center GPU and an AI PC platform. Meta Platforms' AI investments boosted its ad revenue by 21% in the first nine months of 2025, with plans for over $100 billion in capital spending for 2026. Salesforce's Agentforce platform, which automates tasks with AI, experienced a 330% annual recurring revenue growth.
In industrial applications, Applied Industrial Technologies utilized AI to manage pricing, sales, and customer service, contributing to fiscal Q2 sales of $1.16 billion and profits of $95.3 million. Zebra Technologies, in collaboration with Sentinel, introduced an AI-driven Poka Yoke inspection solution for car factories, which has lowered defect rates and cut machine setup times from three months to three weeks. Meanwhile, Datavault AI stock saw a decline of 3.9% on Monday, reflecting some investor concern.
Key Takeaways
- Apple's Q1 earnings are expected to reach $138.4 billion in revenue and $2.68 EPS, driven by strong iPhone 17 series sales.
- Apple's global smartphone market share increased to 20% from 18% year-over-year.
- Apple has partnered with Google to integrate Gemini AI into Siri, aiming to enhance AI capabilities without extensive infrastructure investment.
- Nvidia invested $2 billion in CoreWeave to accelerate the development of over 5 gigawatts of AI data centers by 2030.
- CoreWeave's valuation jumped to $19 billion but the company is facing multiple class-action lawsuits.
- Intel's stock rose nearly 110% in the past year due to a new AI strategy, including a partnership with Nvidia and new AI products like the Crescent Island GPU.
- Meta Platforms' AI investments contributed to a 21% increase in ad revenue in the first nine months of 2025, with over $100 billion in capital spending planned for 2026.
- Salesforce's Agentforce AI platform achieved 330% annual recurring revenue growth.
- Applied Industrial Technologies leveraged AI to boost fiscal Q2 sales to $1.16 billion and profits to $95.3 million.
- Zebra Technologies' AI-driven Poka Yoke inspection solution reduced car factory defect rates and cut machine setup times from three months to three weeks.
Apple AI Strategy and iPhone Sales in Focus for Earnings
Apple will report its first-quarter earnings on Thursday, January 28, 2026. Investors are eager to hear about the company's AI strategy, especially its partnership with Google's Gemini for Siri. Analysts expect strong revenue of $138.4 billion and earnings per share of $2.68. Key things to watch include iPhone sales, memory costs, and plans for a Siri refresh this spring and a foldable iPhone.
Apple Earnings Reveal Strong iPhone Sales and AI Plans
Apple will announce its first-quarter earnings after the market closes on Thursday. Experts predict strong iPhone sales, especially after the stock gained 48% in 2023. Investors will also look for details on Apple's AI strategy, as the company has been quiet compared to rivals like Google and Microsoft. The report will also cover the growth of Apple's services and other products like Apple Watch and AirPods.
iPhone 17 Sales Boost Apple Holiday Earnings Google AI Deal
Apple saw strong iPhone sales during its holiday quarter, especially for the iPhone 17 series. This helped the company achieve record total revenue, possibly over $138 billion. Apple's global smartphone share increased to 20 percent from 18 percent the previous year. The company's strategic partnership with Google to use Gemini AI in Siri is also a key focus for investors. This deal helps Apple enhance AI features without bearing the full costs of extensive AI infrastructure investment.
Apple iPhone Sales Soar Google AI Deal Boosts Outlook
Apple's iPhone 17 series sales surged in the last three months of 2025, driving its holiday quarter performance. The company's partnership with Alphabet-owned Google Gemini AI is also a major focus, allowing Apple to use advanced AI without massive spending. Analysts expect iPhone sales to rise 13.8% and total revenue to reach a record $138.43 billion. Apple's global smartphone market share grew to 20% last year. Investors are also watching for comments on rising memory chip costs and European App Store regulations.
Top Three AI Stocks Offer Decade Investment Opportunity
Artificial intelligence is the key technology of this decade, creating big growth chances. Three top AI stocks to consider are Meta Platforms, Salesforce, and Taiwan Semiconductor Manufacturing. Meta Platforms benefits from AI in advertising and messaging, with ad revenue up 21% in the first nine months of 2025. Salesforce's Agentforce platform, which automates tasks with AI, saw 330% annual recurring revenue growth. Taiwan Semiconductor Manufacturing leads chip production with 72% market share and strong sales growth in 2025.
Three AI Stocks Present Big Investment Opportunity Now
Artificial intelligence is the major technology transforming this decade, offering significant investment opportunities. Meta Platforms, Salesforce, and Taiwan Semiconductor Manufacturing are three top stocks in this space. Meta's AI investments boosted ad revenue by 21% through the first nine months of 2025, and the company plans over $100 billion in capital spending for 2026. Salesforce's Agentforce AI platform is growing fast, with annual recurring revenue up 330%. Taiwan Semiconductor Manufacturing dominates chip manufacturing with 72% market share and saw 35.9% sales growth in 2025.
Nvidia Invests Two Billion Dollars in CoreWeave Data Centers
Nvidia invested $2 billion in CoreWeave to expand their partnership. This collaboration aims to speed up the development of over 5 gigawatts of AI data centers by 2030. Nvidia CEO Jensen Huang noted that much more funding is still needed for this large project. A study from Switzerland-based tech university EPFL suggests that many operational AI systems can work without huge centralized data centers. Nvidia believes small-language-models will be key for cost-effective AI operations.
Zebra Technologies AI System Boosts Auto Plant Quality
Zebra Technologies and Sentinel are changing how car factories work with their AI-driven Poka Yoke inspection solution. This system uses Zebra's AltiZ Series High-Fidelity 3D Profile Sensor and Sentinel's Vision Core AI software. Automotive manufacturers using it have lowered defect rates and cut machine setup times from three months to three weeks. This new flexible vision-based system replaces many old mechanical sensors, making quality control better and operations more efficient. This development could impact the investment case for Zebra Technologies.
Datavault AI Stock Drops Nearly Four Percent
Datavault AI stock fell by 3.9% to $1.48 on Monday. The company provides artificial intelligence solutions. This drop indicates a degree of investor concern or a wider market trend affecting tech stocks. Further analysis will be required to determine the specific reasons behind this decline and its implications for the company's long-term valuation.
Applied Industrial Uses AI as Demand Improves
Applied Industrial Technologies is using AI and automation to manage pricing, sales, and customer service. The company reported strong fiscal Q2 sales of $1.16 billion, an 8.4% increase from $1.07 billion a year earlier, with profits of $95.3 million. CEO Neil Schrimsher noted that AI investments help support margins and open new growth areas like data centers and semiconductor manufacturing. The technology vertical added about 100 basis points to organic sales growth. Automation operations also saw mid-single-digit growth, serving industries like food and beverage.
Nvidia Invests Two Billion in CoreWeave Amid Lawsuits
Nvidia invested US$2 billion in CoreWeave and expanded their partnership. CoreWeave will deepen its role as an infrastructure provider for Nvidia powered AI workloads. The company's valuation has jumped to US$19 billion from US$2 billion in one year due to high demand for AI computing. However, CoreWeave faces multiple class action lawsuits. These lawsuits claim the company made misleading statements about its ability to scale infrastructure and meet customer demand. Investors are watching how CoreWeave handles these legal issues while growing in the AI market.
Intel Stock Rises With New AI Strategy and Products
Intel's stock has risen almost 110% in the last year under new CEO Lip-Bu Tan, who started in March 2025. The company is now focusing on a clear AI strategy. Intel partnered with Nvidia to develop custom AI accelerators and released a new data center GPU called Crescent Island. It also debuted its first AI PC platform using 18A process technology at the CES trade show. While 2025 revenue fell slightly to $53 billion, these new AI efforts show promising direction for Intel.
Magnificent Seven Earnings Focus on AI Spending and Profits
Four of the Magnificent Seven companies, Apple, Microsoft, Meta Platforms, and Alphabet, will report earnings this week. Investors will closely watch their capital spending and how much profit they are making from AI investments. While strong profits are expected due to the ongoing AI boom, concerns exist about rising memory costs and tariff risks. For example, Meta faces increasing capital expenditures and losses from Reality Labs, while Amazon's heavy AI investment raises questions about long-term profitability.
Sources
- Apple earnings preview: AI updates in focus for Wall Street ahead of results
- Apple’s first quarter earnings will focus on iPhone sales, AI outlook
- Strong iPhone Sales Drive Apple’s Holiday Quarter as Google AI Deal Looms
- Strong iPhone sales to power Apple's holiday quarter, Google AI deal in focus
- A Once-in-a-Decade Investment Opportunity: The 3 Best AI Stocks to Buy Right Now
- A Once-in-a-Decade Investment Opportunity: The 3 Best AI Stocks to Buy Right Now
- Nvidia Invests $2 Billion in CoreWeave Amid Data Center Project
- Is AI-Driven Poka Yoke Adoption in Auto Plants Altering The Investment Case For Zebra Technologies (ZBRA)?
- Datavault AI (NASDAQ:DVLT) Trading Down 3.9%
- Applied Industrial emphasizes AI as demand shows early improvement
- Nvidia’s CoreWeave Bet Balances AI Growth Ambitions With Legal Scrutiny
- Is This Chip Stock a Smart Long-Term Bet as Artificial Intelligence Scales Globally?
- Mag 7 earnings begin this week, with capex and AI returns in the spotlight
Comments
Please log in to post a comment.