Earnings season has just started. 3 big names came with strong numbers but a somewhat cautious outlook. Macro headwinds are biting into revenues at Microsoft. ASML remains very upbeat. TSMC stands in the middle achieving a very strong quarter but expecting slower growth for 2023. Importantly, high margins for the three companies seem to be resisting well. Pricing does not seem to be an issue. Clients are delaying decision and showing more caution and selectivity in their spending. The three companies are leaders in their respective markets with a strong long-term outlook.

Looking at their share price last-year performance and their valuation, these companies have already priced a lot of bad news. The current trend suggests a slowing rate of growth and not a steep collapse in earnings. It remains to be seen if this is confirmed by other technology names with a smaller scale and therefore a weaker bargaining power. If 2023 is not a Armageddon for technology revenues and earnings it could signal a positive inflection point for sentiment and share prices after last-year crash.