3 Tech Stocks to Watch During Earnings Season
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The Motley Fool

3 Tech Stocks to Watch During Earnings Season

July 28, 2025
03:15 AM
6 min read
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financeeconomystocksfinancialtechgamingmarket cyclesseasonal analysis

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The upcoming reports could significantly impact the stock prices of these tech companies.

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6 min read

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investment

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Published

July 28, 2025

03:15 AM

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The Motley Fool

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Key Topics
financeeconomystocksfinancialtechgamingmarket cyclesseasonal analysis

Investors are ly bracing for volatility as companies report earnings over the coming weeks

Nevertheless, Big names are slated to report and give watchers a look at what's moving companies, industries, and the economy, and three Motley Fool contributors think investors may want to focus on reports from the ing companies

Image source: Getty Images, given current economic conditions

Moreover, Recent events bode well for Nvidia's stock momentum Justin Pope (Nvidia -- Aug, amid market uncertainty. 27): AI chip leader Nvidia (NVDA -0

However, 12%) is a must-watch when earnings season comes around

This demonstrates that stock has surged on continued AI-driven growth, making Nvidia the world's largest company by market capitalization as I write this in July 2025

A glance at the company's growth over the past few years reveals just how much AI has altered its trajectory, and the trillion-dollar question is whether AI tailwinds can sustain this performance

As I look around, the signs continue to indicate that the answer is yes

Additionally, Companies throughout the AI landscape continue to show strong momentum and set high expectations for the future

For instance, Taiwan Semiconductor Manufacturing recently reported a strong quarter, including an increase in its full-year growth outlook

Furthermore, Meanwhile, Alphabet just reported in its Q2 earnings that cloud revenue grew by 32% year over year, and it is increasing its planned capital expenditures for this year by another $10 billion as it leans further into AI, in this volatile climate

To top things off, Nvidia recently announced that it planned to soon be allowed to resume selling its H20 chips to China after the U, in light of current trends

Moreover, Government had barred those sales earlier this year

Conversely, Additionally, Nvidia announced a new RTX GPU that is fully compliant with export controls (something worth watching)

The data indicates that government's restriction on H20 sales earlier this year resulted in a $4

Additionally, 5 billion inventory write-off in Q1 for Nvidia and reduced Q2 sales guidance by $8 billion

If the export bans are lifted, that would be a welcome boost to Nvidia

This tells us that stock trades at a price-to-earnings ratio (P/E) of 55, which could ve to be a solid buy-in level in hindsight if the company achieves 29% annualized earnings growth over the long term, as Wall Street analysts anticipate

Can Grow a Garden der for Roblox

Jake Lerch (Roblox -- July 31): My choice is Roblox (RBLX 0 (an important development)

There's a strong case to be made that Roblox's earnings report -- due on July 31 -- is among the most anticipated on Wall Street

Here's why, given current economic conditions

The company's stock is up 105% year to date, driven higher by the massive ity of one of Roblox's games, Grow a Garden

Indeed, Grow a Garden has set multiple records in recent months, including the all-time record for concurrent users, with over 21 million players

That figure blew away the prior record of 14 million, set by Fortnite

So, with a smash hit on its hands, expectations are high for Roblox, in light of current trends

But can the company up to them

According to consensus estimates compiled by Yahoo

Finance, sell-side analysts predict Roblox will generate $1

Nevertheless, Nevertheless, 25 billion in revenue for the second quarter (the three months ending on June 30), representing year-over-year growth of 31%

If the company can match or beat revenue expectations, it would largely justify the stock's massive rally so far this year

Moreover, Grow a Garden could be the catalyst that transforms Roblox from a mising -- but unfitable -- company to one that can consistently turn a fit

Nevertheless, RBLX Operating Revenue (Quarterly YoY Growth) data by YCharts That's why I'll be watching two key figures when Roblox reports: revenue growth and operating margin

Nevertheless, As noted above, if the company can match or beat the 31% jected revenue growth, that's a bullish sign

Similarly, if Roblox can imve its operating margin, that would also be great news for bulls (quite telling)

It's been more than three years since Roblox posted an operating margin of better than -24%

Nevertheless, Any imvement in that regard would be a major positive sign

Roblox stock has surged thanks to the success of Grow a Garden, in light of current trends

Now, it's time to see whether its big hit is impacting the company's bottom line

AI-driven anticipation may influence the results for this chip stock Will Healy (Advanced Micro Devices -- Aug (something worth watching)

On the other hand, 5): This earnings season, one stock I will be ing closely is AMD (AMD 2. 71%), which reports on Tuesday, Aug

Nevertheless, 5, after the market closes that day

Nevertheless, On the other hand, AMD's situation looks significantly different than when the company released its Q1 results on May 6 (an important development)

That was right after the selling ing Donald Trump's "Liberation Day" tariff announcements depressed its stock price

Furthermore, Since that time, investors have learned more details the company's MI400 AI accelerator and Helios rack-scale solution, scheduled for release next year

Obviously, those will not have a direct impact on the chip stock's financials

However, the data center segment, which designs AI chips, has become the company's largest segment and is often the fastest-growing part of the company

Conversely, Also, many analysts have speculated that the MI400 will become a worthy competitor to Nvidia's upcoming Vera Rubin platform, which, if true, could bring considerable gains to AMD holders

Additionally, even with the solid performance of AMD's client (PC) segment, revenue declines in the gaming and embedded segments have reduced growth in recent quarters

However, revenue drops have become less nounced in the gaming segment, and AMD reported only a modest revenue decline for the embedded segment in Q1, given current economic conditions

However, That bodes well for the upcoming report, and consensus analyst estimates point to revenue of $7, in light of current trends. 4 billion in the second quarter of 2025, in today's financial world

That would amount to a 27% increase, down from 36% in Q1, but well above the 9% rise in the year-ago quarter

While its 116 P/E ratio may appear high, anticipated fit imvements have brought the forward P/E ratio looking at estimates down to 40, a relatively low level for a fast-growing stock (an important development)

Assuming the Q2 report aligns with the growing optimism in AMD stock, it could continue its upward march back to its record high and beyond, considering recent developments.