itstargetnews
Big Tech’s earnings season kicks off next week with a flurry of announcements from some of the industry’s biggest players, including Apple (Appl), Meta (Goal), and Microsoft (Msft)). With the new year underway, and AI still the hottest ticket in Silicon Valley, you can expect a lot of conversation about how companies are monetizing the technology and how much they’re spending on capital expenditures related to data center construction and production of new AI models.
And all of this will be how the newly inaugurated President Trump will affect Tech’s biggest trend in years. Whether it’s tougher tariffs, export controls or more relaxed antitrust regulations, Big Tech will be on the radar in Washington. And it’s true that investors want to know what this means for companies’ bottom lines.
Trump already made his mark on the AI scene on Tuesday, announcing Stargatea $500 million AI Data Center venture led by SoftBank, Openai, and Oracle (orcl) This will see the trio build data centers to power AI projects in the United States. And on Thursday, Trump signed an executive order was aimed at securing US dominance in AI.
It’s all going to make for a pretty interesting results season and Wednesday kicks off with Meta and Microsoft.
Investors and analysts will want to know how the companies are working with the administration to make sure they don’t end up on the wrong end of Trump’s proposal Tariffs on goods from China.
Apple (Appl), whose CEO Tim Cook has a good relationship with the president, avoided tariffs during the first Trump administration and will do so again. Amazon (Amzn), Apple, Google (Googo, Google), Meta and Microsoft could also see less regulation around antitrust issues and a return to mergers and acquisitions.
There is also the fate of the Chip Act. The legislation, passed under the Biden administration, aims to bring semiconductor manufacturing back to the United States. But Trump has criticized the lawthat provides billions in funding to chipmakers, saying it was “so bad” during an appearance on Joe Rogan’s podcast before the election.
Out of cash, Intel (INTC)), TSMC, Samsung and a host of other semiconductor companies may not be able to complete their ambitious plans to build new chipmaking facilities. Look for word on how the likes of Intel and its competitors are navigating the new administration and whether it’s being heard on how it plans to tackle the Chip Act.
Besides Trump, you can guarantee that virtually every tech company will mention AI revenue and spending. According to Jefferies analyst Brent Thill, Microsoft should report improved AI consumption and continued spending, which investors expect as the company works to meet customer demand for AI infrastructure.
