Tech Giants Face Earnings Slowdown with 18% Growth Expected in 2026
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 11 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.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
