It’s been a great earnings season thus far – in fact, the best when it comes to guidance, and yet reactions have been mixed, although a lot better this week than the first two weeks, where earnings misses were greeted with an average selloff of 9.0% versus a historical drubbing of only 3.0%.

But maybe that’s changing. Super Micro Computer (SMCI) offered positive guidance last night, and it was the number one percentage gainer.

After the close there are notable names reporting, but none more prominent than Alphabet (GOOG/L).

Since the arrival of ChatGPT, this has been an AI rally, and more folks are questioning how much longer there will be appetite for high-octane investment and growth. 

First Up: Google

Google was flying higher after stumbling out of the gate last year (see arrow), as investors questioned how the company's core businesses would hold up in an AI world and whether there would be a return on their big investment in AI.

But there have been bumps in the road recently.

I think the company will blow away consensus, but it matters most with cloud, which I think comes in above 65% growth.

The company is going to keep spending.

Overall, I like today’s action as key stocks like Nvidia (NVDA) opened lower and found buyers.

I’m not sure where the money will come from, but there is a serious appetite to get back into the leaders, which have pulled back even as the story gets better and the future looks brighter.