Last week, the earnings releases of two hard-tech companies caused huge fluctuations in AI stocks. This week, Google and Tesla, two of the 'Magnificent Seven' tech giants, are highly likely to trigger significant volatility in their respective sectors.

For Tesla, since sales figures are already known, the real focus is on gross margins, future sales outlook, and progress on Robotaxi. In fact, Tesla has no new car models this year, and there's limited room for further price cuts. Therefore, apart from riding the AI hype for a rally, Tesla's core auto business can only provide a valuation floor this year.

$Alphabet(GOOGL.US) faces two major short-term issues: a. Whether ad growth, especially YouTube ads showing signs of recovery, can offset the impact of a weakening macro environment amid softening consumer spending; b. The potential implications of Google Search unbundling from Apple, particularly as rival AI search solutions gain traction in the long run.

Dolphin Research mentioned last week concerns that Netflix's earnings might preview the 'Magnificent Seven' earnings season (where even flawless results could disappoint due to insufficient beats against high valuations or underwhelming guidance).

The current adjustment only differs in scale—whether it's a major or minor correction. Additionally, the market continues to closely monitor these giants' capital expenditures to gauge the sustainability of the AI hardware procurement cycle. While bearish for application-scenario companies, this trend may persistently support AI hardware firms.