Big Tech Earnings: How Trump’s Policies Could Shape the Industry
Trump’s Policies and AI Spending Shape the Outlook for Big Tech Earnings Season

As Big Tech earnings season kicks off, all eyes are on the biggest players in the tech sector—Apple (AAPL), Meta (META), Microsoft (MSFT), Amazon (AMZN), and Google (GOOG). But this time, it’s not just about revenue reports, AI advancements, or capital expenditure trends. Looming large over the financials is the influence of newly inaugurated President Donald Trump. His policies, rhetoric, and decisions are poised to reshape the tech industry’s landscape, leaving investors speculating about their portfolios.
Trump’s Policies: A Double-Edged Sword for Tech
President Trump’s second term introduces a complex mix of opportunities and challenges for the tech industry. The administration’s stance on tariffs, export controls, and antitrust regulations will dictate how Big Tech navigates this pivotal moment.
Trump’s proposed tariffs on goods from China, for instance, could directly impact the supply chain and profitability of giants like Apple and Amazon. Apple, historically adept at maintaining a strong relationship with Trump during his first term, may find ways to sidestep these potential roadblocks. Meanwhile, more relaxed antitrust regulations under Trump could open doors for mergers and acquisitions, a move that Big Tech players are sure to welcome.
AI Spending in the Spotlight
Artificial Intelligence remains the hottest topic in Silicon Valley, and investors will be keen to learn how companies are monetizing this transformative technology. AI has become a race for dominance, and it’s reflected in the hefty capital expenditures reported by tech giants. Meta, for instance, recently increased its full-year capex spending projections, which rattled some investors.
Similarly, Microsoft’s continued push into AI-driven cloud services is expected to bolster revenue, yet the heavy investment required could weigh on short-term margins. On the other hand, Google has managed to strike a balance, with its cloud revenue exceeding expectations and leaving investors optimistic.
The CHIPS Act: A Contentious Debate
Trump has been openly critical of the CHIPS Act, a legislative effort under the Biden administration aimed at revitalizing semiconductor manufacturing in the U.S. With billions of dollars in subsidies hanging in the balance, companies like Intel and TSMC could face significant hurdles if Trump decides to roll back or restructure the program. The semiconductor industry, crucial for powering AI and other technologies, could be left scrambling for alternative funding.
TikTok’s Future: A Boon or Bust for Meta and Google?
The Trump administration’s approach to TikTok adds another layer of uncertainty to Big Tech’s earnings season. The app, wildly popular in the U.S. with 170 million users, faces potential bans or regulatory restrictions. Should TikTok disappear, Meta and Google are well-positioned to capture displaced users and advertisers, driving growth for Instagram and YouTube. However, Trump’s campaign promises to “save” TikTok complicate the narrative, leaving investors to speculate about the app’s future.
Investor Sentiment and Stock Performance
Despite their strong presence, not all tech stocks have outperformed the broader market. Over the past 12 months, Microsoft shares have lagged, while Amazon, Meta, and Google have seen significant gains. Investors will be closely watching how these companies’ earnings align with their stock performance and broader economic trends.
The Road Ahead
Big Tech’s earnings season promises to be a whirlwind of financial disclosures, policy speculation, and market reactions. As Trump’s administration begins to assert its influence, the stakes are higher than ever. For investors, this means carefully weighing the potential risks and rewards of navigating this volatile landscape.
