Benzingaยท2025-10-09 07:59Core Insights - Prominent tech analyst Dan Ives predicts a "very strong" third-quarter earnings season for tech stocks, suggesting results will "match/exceed the AI hype" driven by robust AI demand in cloud stalwarts [1][2] - The broader market impact from tariffs is expected to be less severe than previously feared, with corporate America poised for another good earnings season following an outstanding second quarter [2][3] Tech Earnings Outlook - Ives highlights that major tech companies like Microsoft, Alphabet, and Amazon experienced "very robust AI enterprise demand" in Q3 based on field checks [2] - LPL Financial's analysis indicates that a "tariff-driven slowdown" is unlikely to significantly impact Q3 earnings growth, attributing resilience to tariff mitigation measures, increased AI investment, and a weaker U.S. dollar [3] Market Performance Drivers - The "Magnificent 7" tech stocks are expected to significantly drive market performance, with 70% of the S&P 500's anticipated 8% earnings growth coming from these companies, excluding Tesla [4] - LPL's preference for large-cap growth stocks over value counterparts is supported by the concentration of growth among these major tech firms [5] Earnings Growth Projections - For Q3, corporate America is expected to achieve a low-teens earnings growth rate for the S&P 500 [6] - LPL suggests that AI investment, productivity gains, and supportive fiscal policy could enable earnings to grow at a double-digit rate by 2026, sustaining the current bull market [5]