This week, the spotlight was on information technology stocks as companies like Apple, Super Micro Computer, Advanced Micro Devices, and Qualcomm reported their results. Despite being down nearly 6% quarter-to-date compared to the overall market downturn, the information technology sector has been resilient. Out of the 21 companies that reported earnings this week, 19 beat expectations while two missed. On the revenue side, 14 companies exceeded estimates while seven fell short.
One company that stood out was Apple, whose shares rose after reporting better-than-expected second-quarter results despite concerns about iPhone sales in China. The company also announced a $110 billion share buyback, the largest in U.S. history to date. Meanwhile, Super Micro Computer’s stock tumbled after a mixed third-quarter earnings report that fell short of market expectations despite a significant increase in revenue from a year ago. Chipmaker AMD reported results and guidance that were in line with expectations.
So far this quarter, 42 out of 383 companies reporting results are part of the information technology sector. Various sub-industries within the sector, such as professional services, software, semiconductors, and technology hardware have also reported earnings. A majority of companies in the sector have beaten expectations for both earnings per share and revenue.
Looking ahead to next week’s earnings reports, notable information technology companies like Palantir Technologies and Unity Software are set to release their financial statements. Investors can gain exposure to the performance of the entire information technology sector through investing in ETFs such as Technology Select Sector SPDR ETF.
In conclusion, despite being down slightly compared to other sectors and facing challenges such as concerns about iPhone sales in China and mixed third-quarter earnings reports from some sub-industries within the sector