Recent earnings reports from Apple and Amazon have delivered a compelling rebuttal to the idea that the current surge in tech stock prices signals a bubble about to burst. Both companies handily exceeded Wall Street expectations for their most recent quarters, demonstrating strong fundamental performance in the face of broader market skepticism.

Amazon’s results stood out, with quarterly revenue rising 13% year-over-year to $167.7 billion—well ahead of analyst predictions. Net income jumped to $18.2 billion, up from $13.5 billion a year ago, and earnings per share reached $1.68. Amazon Web Services, the company’s most profitable segment, posted $30.9 billion in revenue, marking a 17.5% increase. Subscription services, including Prime, also saw healthy growth, with revenue up 12% to $12.2 billion. These numbers illustrate Amazon’s continued dominance in e-commerce and cloud computing, as well as its willingness to invest heavily in artificial intelligence infrastructure for continued expansion.

Despite these stellar numbers, Amazon shares saw a dip in after-hours trading, in part due to the company’s massive AI-related investments and cautious guidance about retail headwinds. Yet, Amazon’s forecast for the next quarter remains robust with projected sales between $174 and $179.5 billion, surpassing most analyst estimates.

Apple, too, comfortably beat market forecasts, shrugging off concerns about the impact of global tariffs and supply chain challenges. The continued resilience from these tech giants suggests the underlying business models and growth prospects remain solid, contradicting fears of speculative excess in the tech sector.

Together, Apple and Amazon’s performance underscores that leading tech stocks are being driven by strong earnings and strategic investments, rather than unsustainable hype. These results provide a reassuring signal to investors that the tech rally is firmly grounded in reality.