Will Fed be Able to Instil Renewed Confidence in Tech Stocks?

The recent economic indicators from the United States along with comments from Federal Reserve officials are pointing towards a higher probability of interest rate cut and most analysts are expecting a 25bp cut at the monetary policy meeting on December 9-10, though there is some support for a larger 50bp cut along with further reductions through 2026 as inflation continues to ease. Lower interest rates are likely to boost technology and AI stocks because availability of cheaper capital will not only reduce costs for research, cloud infrastructure and data centres but will also improve spending from consumers and businesses.

Broadcom Inc. (NASDAQ: AVGO)

is a major player in the global AI space and is showing strong momentum as demand for artificial intelligence, data centers and cloud software increases.

Revenue for the most recent reported quarter reached US$15.95 billion compared to US$13.07 billion in the same quarter last year.

Net income for the quarter was US$4.14 billion which is a major improvement compared to a loss of US$1.87 billion in the same quarter last year.

Broadcom will continue to benefit from accelerating AI infrastructure spending and strong balance sheet as the sector moves into its next growth phase.

Meta Platforms, Inc. (NASDAQ: META)

continues to be one of the most influential companies in the global digital ecosystem as user engagement, AI-driven advertising and infrastructure investments continue to support long-term growth.

Revenue for the most recent reported quarter reached US$51.24 billion compared to US$40.59 billion in the same quarter last year.

The balance sheet is strong with US$44.45 billion in cash and marketable securities which provides flexibility for continued AI development.

Meta is scaling its AI-powered Llama models which are expected to improve ad automation, creator tools and enterprise products.

Capital expenditure continues to rise as the company increases long-term spending on GPU clusters, data centers and compute capacity to support the next wave of AI-driven products across its platforms.

Adobe Inc. (NASDAQ: ADBE)

has been underestimated a lot since the AI boom and failed figma acquisition as evident by their stock price decline but it has delivered consistent growth which the market is bound to recognise soon.

The company delivered strong third-quarter performance with revenue rising to US$5.99 billion from US$5.41 billion in FY24 while net income increased to US$1.77 billion from US$1.68 billion.

The balance sheet is solid with US$4.98 billion in cash and short-term investments and over US$8.80 billion was spent on share buybacks in the first nine months of FY2025 which supports long-term shareholder value through a lower share count.

Key growth drivers are AI-powered workflows through the Firefly platform and rising enterprise demand for digital experience solutions while the company continues product improvements as it moves towards a scalable AI-enabled creative ecosystem.

Salesforce, Inc. (NYSE: CRM)

has shown good results for the October quarter as total revenue reached US$10.26 billion compared to US$9.44 billion in the same quarter last year.

Net income rose to US$2.09 billion from US$1.53 billion which shows improving profitability.
The balance sheet is strong with US$8.98 billion in cash and cash equivalents which supports continued spending in R&D, infrastructure and AI expansion.

Salesforce is scaling its AI ecosystem through Agentforce which enables autonomous agents across sales, marketing and other services.

(Source: Company Reports)