Big Tech’s fortunes diverge as AI powers cloud, tariffs hit consumer electronics

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Written by Aditya Sony and Dibora Marie Sophia

(Reuters) -The wealth of major technology is separated in the scene of rapidly changing business, as the demand for artificial intelligence is growing in cloud advertisements and digital advertisements while consumer electronics takes a beating from president Donald Trump’s global war. Amnesty International to save profits at Microsoft and Google-Parent Alphabet came in the quarter-month of March, providing investors to hope that their stakes in technology will help them to help bleak predictions from companies that have caused confirmation, which are related comments, on blatant contradictions, you have been resulted from exciting expectations, through Trump’s attempts to rearrange global trade were. Harm their work.

The division highlights how companies that focus on institutions are fixed despite economic tensions, while the decline in consumer spending weighs on the demand for smartphones, personal computers and potatoes that they are working on.

This may cause Apple’s troubles, making 90 % of its products in China and generating about half of its revenues from iPhone sales. Amazon.com e -commerce can also arrive, although the cloud section – which represents most of its profits – is expected to stand like Microsoft and Google.

Amazon and Apple are scheduled to report on Thursday after the market closed.

“There has been no effect on their business (Google and Microsoft) so far because it is not in the business of consumer. With our arrival at Apple and Amazon, it may be a little different,” said Louori’s generation, Da Davidson analyst.

“Apple will be affected, there are very little that they can do to avoid some impact due to the customs tariff. With Amazon, the turmoil is more apparent on the retail side because many of their traders are in China.”

The Trump administration has so far succeeded in definition electronics, but Washington has indicated that some fees can be imposed in the coming weeks.

Apple will try to reduce the definitions by transferring the production of iPhone devices to the United States to India, Reuters said, but it is possible that it will maintain the price increase to the minimum to avoid losing its share in the market and will have to enhance any high costs.

Reuters reported that some third -party merchants on Amazon, who sell Chinese Chinese goods during the company’s Chinese shopping event, plan to sit this year to protect profit margins, according to Reuters.

Amnesty International spending its fruits

Samsung, which manufactures smartphones and the chips in which it enters, has made a more cautious tone, saying, “The uncertainty in demand grows in the second half as a result of recent changes in the customs tariff policies in major countries.”

On Wednesday, the Qualcomm Clated Capital Designer expects the third quarter revenues that will miss estimates, which reflects the impact of definitions. Apple is known to be the largest customer in Qualcomm.

On Wednesday, Microsoft reported a 33 % stronger leap in revenue in her cloud business and expected an acceleration in growth. Alphabet last week increased 8.5 % in basic advertising sales, as the merging of the IQ in Google Search increased its attractiveness to advertisers.

On Wednesday, Facebook-Parent Meta topped revenue expectations for strong advertising sales. But the younger Meta competitor on Tuesday said that he would not issue a quarterly expectations due to economic uncertainty, as advertisers prefer larger platforms in difficult times.

Microsoft shares increased by more than 9 %, while Meta gained 5.6 %. Qualcomm decreased by 7.9 %, while the artificial intelligence chips suppliers, advanced fine devices and Broodcom added between 1.2 % and 3.2 %.

“During the month of April, the request signals have remained through our business as well as in LinkedIn, games and research consistent,” said analysts at Microsoft Amy Hood.

Some analysts said that the strong results of Microsoft indicated that fears that technology giants have added a lot of the data center’s ability to support the demand for artificial intelligence.

The Windows maker, whose shares decreased by 6 % this year, was under pressure after analyst reports stated that it had canceled some lease contracts at the data center in a possible sign of increasing the supply.

But on Wednesday, the company said that the contribution of artificial intelligence to the growth of Azure rose to 16 percentage points in the quarter -March, from 13 percentage points in the previous three months.

“The great improvement in the contribution of artificial intelligence indicates a high potential for intelligence as soon as the capacity is available,” Barclays analysts said in a note.

Microsoft, who plans to spend $ 80 billion on Amnesty International’s infrastructure this fiscal year, warned that it is still dedicated to supply, and reflects comments from the alphabet.

“We were hoping to be in the balance (cloud capacity) by the end of the fourth quarter. We have seen some increasing demand, as I saw during the quarter, so we will be a little short, a little tight with our exit from the year, but we encourage it,” said Hood of Microsoft:

(Editia Sony and Diboras Sofia participated in Bangaluru; Editing by Sayantani Ghosh

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2025-05-01 10:10:00

0 3 minutes read