Key takeaways
- Apple and Palantir report after Monday's market close
- October's AI selloff erased trillions in technology valuations
- Investors demand stronger profits and evidence of AI returns
Wall Street faces a crucial test of its artificial intelligence investment boom on November 2 as Apple and Palantir prepare to report quarterly earnings following an October selloff that erased more than $2 trillion in Nasdaq-100 market value.
The two companies represent different sides of the AI economy. Apple relies on its enormous consumer hardware and services business while maintaining comparatively restrained AI infrastructure spending, whereas Palantir sells AI-powered software directly to governments and businesses.
Both companies will report after Monday's U.S. market close, with earnings calls scheduled for 5 p.m. Eastern. According to Palantir's official announcement, its report covers the three months ended September 30.
The results arrive as investors demand evidence that artificial intelligence can generate sustainable profits rather than simply justify increasingly expensive investments.
Apple's $113 Billion Earnings Test Comes as AI Spending Faces Scrutiny
Analysts expect Apple to report approximately $113.4 billion in fiscal fourth-quarter revenue, representing nearly 11% annual growth, alongside earnings of roughly $1.99 per share.
The company previously reported record June-quarter revenue of $109.4 billion, up 16% year over year, setting a high benchmark for its latest results.
Investors will focus on iPhone demand, services revenue, profit margins and guidance for the holiday shopping season.
Memory-chip costs have increased significantly, threatening hardware margins even as Apple benefits from demand for premium devices. The report will also mark John Ternus's first earnings call as chief executive.
Apple's approach to AI has attracted attention precisely because it differs from the enormous infrastructure commitments made by Microsoft, Amazon and Meta.
Coinpaper previously reported how Apple reached a $5 trillion valuation while AI infrastructure stocks struggled.
The company now faces the challenge of demonstrating that its lower-spending strategy can deliver meaningful product improvements and maintain growth without the financial pressure facing some competitors.
Palantir Must Justify Rapid AI Growth as Investors Question Valuations
Palantir faces a different challenge.
Analysts expect third-quarter revenue of approximately $2.18 billion, representing roughly 85% growth from a year earlier. Adjusted earnings are projected near $0.41 per share, although estimates vary among data providers.
That would represent another period of exceptionally rapid expansion, but expectations are already elevated following second-quarter revenue growth of approximately 93%.
Investors will examine commercial customer adoption, government contracts, operating margins and management's guidance for the final quarter of 2026.
The central question is whether companies are continuing to spend aggressively on Palantir's Artificial Intelligence Platform despite growing concerns about technology budgets.
That uncertainty has already affected the broader market.
Coinpaper recently reported that Amazon's AI spending turned a $15 billion cash surplus into a $42 billion deficit, illustrating the financial pressure created by infrastructure expansion.
Meanwhile, Intel shares collapsed nearly 29% following disappointing guidance, despite reporting stronger earnings than analysts expected.
Strong headline growth alone may therefore be insufficient to reassure investors.
Can Apple and Palantir Reverse October's AI Stock Selloff?
October demonstrated how concentrated the technology-sector weakness had become.
The S&P 500 technology sector declined 6.8%, while more than 70% of individual S&P 500 companies recorded gains during the month.
Coinpaper's analysis showed that most S&P 500 stocks actually rose, despite the index's overall decline.
The divergence suggests investors are not abandoning equities broadly. Instead, they are becoming more selective about expensive AI-related businesses.
That shift was anticipated by Barclays' warning about the AI investment cycle, which emphasized profitability and sustainable earnings over speculative growth.
