July 31 Market Report: Nasdaq Soars 2.78% on Microsoft Earnings; Big Tech Holds Steady Ahead of Results

Big Tech Earnings Season Begins; Key Sectors Hold Steady

On July 30, 2026, global equity markets broke their downward streak, buoyed by Microsoft's strong earnings performance and a rebound in the semiconductor sector. The Nasdaq index surged 2.78%, regaining stability. However, individual major stocks saw increased wait-and-see sentiment ahead of earnings releases, closing with minimal changes. In particular, Micron, considered a key beneficiary of Artificial Intelligence (AI), closed at 739 won, down 0.10% from the previous day. Nvidia and TSMC also fell 0.04% each, maintaining a flat range.

Ticker	Price	Change	Market Cap	PER
Micron	739 won	-0.10%	0.83 trillion won	16.7
Nvidia	190.01 won	-0.04%	4.60 trillion won	29.1
TSMC	374.67 won	-0.04%	1.94 trillion won	32.9
Apple	338.19 won	-0.01%	4.97 trillion won	41.0
Amazon	226.65 won	-0.02%	2.44 trillion won	27.1

While price movements among major semiconductor firms were muted that day, distinct differences emerged in terms of market cap and valuation. Nvidia continues its high-flying trend with a market cap of 4.60 trillion won and a P/E ratio (PER) of 29.1x. Micron maintains a relatively undervalued state with a PER of 16.7x. Given the recovery in the memory semiconductor price cycle, this valuation serves as a factor enhancing investment appeal. TSMC also recorded a PER of 32.9x, solidifying a premium for its monopoly position in the foundry market.

EV and Platform Firms Reflect Concerns Over Earnings Deterioration

Unlike the overall market stability, some companies faced downward pressure due to concerns over corporate fundamentals. Meta and Tesla notably recorded the most significant declines. Recent data from both companies are sending warning signals to investors.

Ticker	Price	Change	Market Cap	PER	EPS Growth
Meta	585.61 won	-0.01%	1.49 trillion won	21.6	-256.0%
Tesla	298.32 won	-0.03%	1.18 trillion won	278.8	-4709.0%
Alphabet (A)	336.71 won	+0.01%	4.12 trillion won	16.8	3419.4%
Coca-Cola	89.08 won	+0.01%	0.38 trillion won	26.8	2348.2%

Tesla bears the burden of excessive valuation with a PER reaching 278.8x. Compounding this, its Earnings Per Share (EPS) growth rate recorded a staggering -4709.0%, indicating a rapid deterioration in profitability. This is interpreted as the result of slowing demand in the EV market and price competition taking a direct toll on earnings. Meta also failed to defend its stock price as EPS growth turned negative at -256.0%. Massive investment costs for AI infrastructure are expected to hamper earnings for the time being. In contrast, Alphabet achieved an EPS growth rate of 3419.4%, proving the synergy between its search and cloud businesses. Defensive stocks like Coca-Cola also recorded high profit growth of 2348.2%, effectively performing their role in attracting investment funds amid uncertainty.

Post-Earnings Stock Trajectories and Market Outlook

The key factor driving market volatility was undoubtedly the quarterly earnings releases from Big Tech companies. While Apple's recent quarterly results topped market expectations, disappointment arose due to sluggish sales in China and revenue guidance for this quarter falling short of the expected 12% increase, coming in at 9–11%. Consequently, Apple closed at 338.19 won, down 0.01% from the previous day. Apple maintains the top spot with a market cap of 4.97 trillion won, but how much it can offset stagnant hardware revenue with its services sector will hold the key to its future stock price.

Amazon surpassed 200.61 billion dollars in quarterly revenue, driven by clear growth in its cloud business. This represents a 20% increase year-over-year. In after-hours trading, the stock surged nearly 9%, drawing a positive reaction from investors. Amazon's PER stands at 27.1x, appearing reasonable, and further valuation upside seems possible if the cloud revenue acceleration is maintained.

Meanwhile, the domestic stock market has experienced extreme volatility, including circuit breaker activations in both KOSPI and KOSDAQ. Foreign investors net sold 4.93 trillion won in June alone, continuing a 'sell' offensive for six consecutive months. This has led to spreading concerns about capital outflows in the domestic market. Although the U.S. market has recently found stability driven by the semiconductor rally and Microsoft's strong earnings, the momentum for capital to circulate back to Asian markets remains insufficient. If third-quarter earnings guidance from key AI semiconductor firms like Nvidia and TSMC meets market expectations, it is projected to serve as a catalyst for a complete reversal of the bearish sentiment.