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Big Tech's colossal capex spending could be offsetting the impact of tariffs

Thu, Aug 7, 2025, 5:34 PM 2 min read

Each round has complicated the economic landscape and raised uncertainty, especially as some companies struggle under the weight of these policies. However, many leading tech companies have made it clear that they don't intend to scale back their spending. Amazon, Apple, Google, Microsoft, and Meta Platforms all increased their capex guidance for 2025.

As one expert sees it, this could be exactly what helps offset the impact of Trump's tariffs.

"These mega-cap tech companies haven't just powered the S&P 500's rebound and pushed the NASDAQ to new highs since the post-Liberation Day lows," wrote Larry Adam, CIO of Raymond James, in a note on Wednesday. "They've also helped offset the drag from tariffs and tight Fed policy through massive capital spending."

Adam isn't the only one who sees this as a distinct possibility. Eugenia Mykuliak, founder and executive director of B2Prime, highlighted the importance of Big Tech's spending spree for the broader economy.

"Although it seems to be a different story from tariffs, these companies help the economy by creating jobs and keeping stock markets strong," she said.

She credited the tech sector's growth with helping soften the blows dealt to the market by Trump's ongoing tariffs and the Federal Reserve's ongoing refusal to cut interest rates.

Kroll managing director Carla Nunes also predicts that the high AI and data center spending from mega-cap tech leaders will likely mitigate the effects of tariffs.

However, she also noted that she doesn't believe it will offset the impact of other economic trends. "The impacts of tariffs on real economic activity will take some time to be fully reflected in economic data, so the longer-term impact needs to be interpreted with caution," Nunes stated.

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