Positive Tech Earnings Kick-Off Temporarily Sweeps Away Tariff Gloom

Upcoming Earnings Preview

Several tech giants will release their first-quarter earnings reports next week.

Microsoft: Analysts expect $Microsoft(MSFT)$   to report revenue of $68.44 billion, reflecting a 10.63% increase from the previous year, and earnings per share of $3.22, representing a 9.39% growth.

Meta: According to Wall Street consensus, $Meta Platforms, Inc.(META)$   is expected to report Q1 revenue of $41.36 billion, up 13.46% YoY but down from the 20.6% growth in the previous quarter. EPS is projected at $5.219.

Tesla and Alphabet released their Q1 earnings this week. See the Earnings Snapshot attached below:

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According to TechInsights, semiconductor sales decreased by 1% for the week ending April 18 due to ongoing U.S. tariff uncertainties, which led to order delays following previous front-loading efforts. Despite this minor setback, sales still exhibited robust growth, achieving a 27% increase year-over-year, bolstered by consistent demand in AI-related sectors. Additionally, retail prices for electronics fell last week, primarily influenced by reductions in mobile handset prices.

SK Hynix Profits Soar 158% in Q1, Surpassing Samsung Amid Global AI Race

Thanks to the global AI race and companies stockpiling chips ahead of U.S. tariffs taking effect, SK Hynix's first-quarter operating profit surged by 158%, far exceeding market expectations. According to the financial report released by SK Hynix, the first quarter revenue reached 17.64 trillion Korean Won (approximately 12.36 billion U.S. dollars), better than the expected 17.26 trillion; operating income was 7.44 trillion Korean Won, far surpassing the expected 6.62 trillion. Compared to the same period last year, revenue increased by 42%.

SK Hynix emphasized that the company's leading position in the AI memory market not only drove the impressive performance this quarter but also led to a dominant 70% market share in the global high-bandwidth memory (HBM) sector. Moreover, according to the latest report by Counterpoint, SK Hynix has for the first time surpassed Samsung in the overall DRAM market, with a market share of 36%, slightly higher than Samsung's 34%. SK Hynix's profits also surpassed those of Samsung Electronics.

Texas Instruments Beats Expectations, Citing Recovering Demand in Automotive and Industrial Sectors

Due to improved demand for industrial and automotive components, Texas Instruments, the largest analog semiconductor manufacturer, forecasts better than expected for the current period.

The company said in a statement on Wednesday that it expects second-quarter revenue to be between $4.17 billion and $4.53 billion. This figure far exceeds Wall Street's average expectation of $4.12 billion.

The company's sales increased for the first time since 2022 last quarter. When asked if customers were placing orders ahead of potential new tariffs, CEO Haviv Ilan said this was not the case, at least in the first quarter. He acknowledged that the company still maintains a cautious outlook on the future.

He stated in a conference call with analysts, "More and more evidence and signals indicate that the industrial markets across all channels and regions are recovering."

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