Tech Giants Face Earnings Slowdown with 18% Growth Expected in 2026
- Earnings Growth Slowdown: The Magnificent 7 tech companies are projected to see profit growth of only 18% in 2026, the slowest rate since 2022, indicating growing investor concerns about the returns on AI investments, which could lead to declining confidence in the sector.
- Market Performance Discrepancy: In 2025, the Magnificent 7 index rose by 25%, primarily driven by Alphabet and Nvidia, highlighting an increasing reliance on these two companies, which may affect overall investment strategies moving forward.
- Valuation Changes: The Magnificent 7 index trades at 29 times projected profits over the next 12 months, down from the 40s seen earlier in the decade, yet investors must remain cautious as market expectations for future growth are no longer optimistic.
- Data Center Demand: Capital spending on U.S. data centers is expected to reach $7 trillion by 2030, reflecting a sustained increase in electricity demand, which could impact the operating costs and profitability of tech companies.
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Technical Analysis for AI
Technical Sentiment Analysis for Sleepless AI (AI) As of , Sleepless AI (AI) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 6 technical signals, shows that 3 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for AI stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, AI is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Sleepless AI (AI) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 0.00921 | 0.0148 | 0.0204 | 0.026 | 0.0316 | 0.0372 | 0.0428 |
| Fibonacci | 0.0148 | 0.0191 | 0.0217 | 0.026 | 0.0303 | 0.0329 | 0.0372 |
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