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This is the biggest week of earnings season, with more than a third of S&P 500 companies reporting, including five of the "Magnificent 7" stocks.

After a blockbuster rally in the first half of the year, big tech stocks took a breather in the third quarter but are now leading the market again. The Nasdaq Composite posted a new all-time high on Friday, its first since July.

The group is expected to report a +16.9% increase in Q3 earnings relative to the same period last year, alongside a +13.3% rise in revenues, according to Zacks Earnings Trends. These stocks have shown divergent performance in 2024, with NVIDIA (NVDA - Free Report) and Meta (META - Free Report) leading the pack and Tesla (TSLA - Free Report) lagging far behind.

Microsoft, (MSFT - Free Report) , Alphabet (GOOG - Free Report) , Amazon (AMZN - Free Report) and Meta increased their capital spending to $106.2 billion during the first half of this year, up 49% from the same period a year ago, per WSJ.

They are not expected to slow down on spending as the AI race heats up. However, investors are closely watching to see if earnings growth will justify this significant capital outlay on AI.

NVIDIA will report its earnings next month, but big tech results this week could drive its shares higher since a significant portion of capital spending is directed toward its AI chips.

The Invesco NASDAQ 100 ETF (QQQM - Free Report) , a cheaper version of the popular QQQ ETF (QQQ - Free Report) , offers one of the best ways to gain exposure to mega-cap tech giants. The Roundhill Magnificent Seven ETF (MAGS - Free Report) provides equal-weighted exposure to the "Magnificent 7."

Single-stock ETFs like the GraniteShares 2x Long NVDA Daily ETF (NVDL - Free Report) can be effectively used as short-term tactical trading tools by high-conviction traders, especially since these stocks could see big moves this week. However, investors should remember that these products are not meant for buy-and-hold investing.

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