The US corporate earnings season is set to accelerate this week, with results from Alphabet, Intel and Tesla expected to provide fresh direction to markets amid lofty expectations for artificial intelligence (AI)-led growth and uncertainty surrounding the Iran conflict.Wall Street enters the busy earnings week after a volatile stretch. The S&P 500 ended lower last week as semiconductor stocks witnessed a sharp sell-off, although the benchmark index remains up about 9% so far in 2026 and is trading roughly 2% below its record high reached earlier in June, according to Reuters.Investor confidence has been underpinned by expectations of strong corporate profitability. Analysts currently expect S&P 500 companies to report a robust 26% year-on-year rise in second-quarter earnings, according to LSEG IBES data.Alphabet's AI spending under the spotlightAlphabet's quarterly earnings, due on Wednesday, are expected to be among the most closely watched reports of the season. As one of the largest companies in the world and a member of the "Magnificent Seven" technology stocks, its results are likely to have a significant impact on broader market sentiment, according to a Reuters report.More importantly, investors will closely monitor Alphabet's capital expenditure plans for AI infrastructure. The company has been investing billions of dollars in data centres and AI capabilities, a spending cycle that has fuelled the rally in semiconductor stocks and companies linked to AI infrastructure.Any indication of slower AI investment could have broader implications for the entire AI ecosystem, including chipmakers and hardware suppliers.Chip sector faces high expectationsEarnings from Intel and Texas Instruments are also expected to be closely scrutinised as investors assess the health of the semiconductor industry.Chip stocks have experienced heightened volatility in recent weeks after an extraordinary rally earlier this year. The Philadelphia Semiconductor Index has fallen more than 20% from its late-June record high, officially entering bear market territory.Despite the correction, the index remains up more than 60% in 2026. Intel shares have surged over 160% this year, while Texas Instruments has gained around 60%, reflecting strong investor optimism around AI-driven demand.Reuters noted that the muted market response to recent earnings from Samsung Electronics and Taiwan Semiconductor Manufacturing Co. suggests that expectations for semiconductor companies remain exceptionally high.Tesla, financials and industrials also in focusTesla, another member of the Magnificent Seven, will also announce quarterly earnings during the week. Other major companies scheduled to report include American Express, Philip Morris International and defence contractor RTX.Overall, more than 80 S&P 500 companies are expected to release quarterly results in the coming week, according to Reuters.The earnings season began on a positive note after major U.S. banks reported stronger-than-expected results, supported by higher investment banking fees from merger and acquisition advisory work as well as robust trading revenues.Middle East tensions and Fed remain key risksWhile earnings remain the primary market focus, investors continue to monitor developments in the Middle East. According to Reuters, concerns persist that renewed escalation in the conflict involving Iran could push oil prices higher, reviving inflationary pressures and increasing market volatility.The geopolitical backdrop also comes ahead of the U.S. Federal Reserve's policy meeting later this month. Markets are assessing whether inflation risks could influence the central bank's interest rate outlook.Reuters reported that softer-than-expected U.S. consumer and producer inflation data released this week eased some concerns over immediate policy tightening. However, expectations reflected in interest rate futures continue to indicate that markets see the possibility of higher interest rates in the coming months if inflation remains above the Fed's 2% target.With AI spending trends, semiconductor demand and corporate profitability all under close scrutiny, the coming week is expected to play a crucial role in shaping investor sentiment and determining whether Wall Street's technology-led rally can regain momentum.