Earning season is coming soon, Morgan Stanley focuses on tech giants: whether AI investment has yielded returns, revenue growth rate is the first signal.

As major tech companies are set to release their financial reports this week, Morgan Stanley's senior internet analyst Brian Nowak pointed out that investors should pay close attention to revenue growth, which is the clearest indicator of return on large-scale capital investment. Nowak stated in an interview on Monday, "The primary signal of all these capital expenditures bringing investment returns is revenue performance. Investors need to see signs of accelerated revenue growth from key performance indicators of each company." Using specific companies as examples, for Alphabet Inc. Class C (GOOGL.US), this means accelerating growth in its search business and improved performance in Alphabet Inc. Class C's cloud business; investors in Amazon.com, Inc. (AMZN.US) should focus on the growth of AWS; and Meta (META.US) shareholders should see acceleration in its advertising business. Nowak expressed confidence in the data center expansion plans of the relevant companies this year, but he also pointed out greater uncertainties in the prospects for 2027 and 2028. He also warned that inflation in components like DRAM memory could bring cost pressures. Nowak emphasized that in his coverage area, the retail business of Amazon.com, Inc. is the "most underestimated generative AI winner." He noted that Amazon.com, Inc.'s continuous improvements in product recommendation algorithms, advertising efficiency, and warehouse automation such as Siasun Robot&Automation constitute key advantages, positioning it to dominate the intelligent body e-commerce sector. Nowak said, "Users are already accustomed to shopping on the Amazon.com, Inc. platform, Amazon.com, Inc. has all your data and the infrastructure to deliver goods to you at the fastest speed."