**Mag 7 Earnings Season Turns the Tide, Valuation Expectations Continue to Be Upgraded**

Nvidia's strong rebound after the Q3 earnings report was a bombshell, with a quarter-on-quarter revenue growth rate of 62.5% and a profit surge of 57.3%, directly shattering market concerns about the peak demand for AI chips. This GPU giant has seen an increase of +35% this year, significantly outperforming the market.

More importantly, the overall Mag 7 group’s Q3 consolidated profit growth rate is +28.3% (revenue growth +18.1%), and the growth expectation for next year has improved from +12.2% two weeks ago to +15.4%. This indicates that Wall Street's expectations for these tech giants are continuously being raised—it's a classic "Davis double play" rhythm.

Although Nvidia's profit growth rate from 2026 to 2027 appears to slow from +55% to +26.7%, this is purely a base effect, as the actual chip demand will remain strong over the next two years. The real variable is how long the AI infrastructure dividend period can continue.

An interesting comparison: Google ( +33% ) performed steadily, while Meta was met with market indifference, and Tesla even saw a 39.5% drop in Q3 profits. Not all of the "Big Seven" can benefit from the AI boom.

As of Q3, 94.8% of companies in the S&P 500 have reported, with an average profit growth rate of +15.6% and revenue growth of +8.3%. 83.4% of companies exceeded expectations. While the retail sector is overall performing well (+16.9% profit growth), this is largely due to Amazon - without Amazon, the growth rate of peers would be cut in half.