Less than 100 days since Donald Trump returned to the White House for a second term as President, Silicon Valley - once awash with expectations for a technology boom - is now engulfed in chaos and uncertainty.
The first shock: The $4.2 trillion market capitalization of the “Magnificent Seven” group (the financial community’s nickname for the top 7 technology companies in the US) evaporated in just a short period of time from January 20 to April 21.
Apple, Microsoft, Nvidia, Amazon, Tesla, Alphabet and Meta are entering the first-quarter earnings season amid unprecedented circumstances.
In just three months, their total market value has plunged 22%, roiling global financial markets and marking one of the most severe corrections since the COVID-19 pandemic.
The tech world had been expecting a “fresh breeze” from President Trump after the term of Joe Biden, who was considered too tough on antitrust regulations and technology control.
They expect President Trump to loosen oversight, support corporate mergers and promote stronger development of artificial intelligence (AI).
But reality quickly poured cold water on it. On April 2, President Trump announced a series of reciprocal tariffs aimed at the global supply chain, especially targeting China - a vital partner of many American technology companies.
Although the White House later postponed some of the heaviest tariffs and exempted many electronic components, Mr. Trump warned that “the concessions are only temporary.”
According to expert Dan Ives from investment bank Wedbush Securities, the current situation puts corporations in a completely passive state.
“The news from the White House is so rapid and unpredictable that businesses and investors are left reeling, unable to plan clearly for supply chains, inventories or demand forecasts,” he said.
Not only taxes, the wave of legal crackdowns is also spreading at a dizzying speed.
Meta is accused of illegally monopolizing social media platforms. Meanwhile, Google faces the risk of being broken up for abusing its search engine power.
Apple and Amazon are under investigation for antitrust lawsuits from the Biden era, and President Trump shows no signs of letting them go.
Nvidia reported a $5.5 billion loss after being banned from exporting its flagship AI chips to China, its largest overseas market. The ban is not only a financial blow but also affects the company’s ambition to dominate global AI.
At the same time, Tesla - the company associated with billionaire Elon Musk, who plays a prominent role in President Trump's cabinet - announced that its electric vehicle sales in the first quarter of 2025 decreased by 13% compared to the same period last year.
This result caused a strong market reaction, leading to a wave of protests and calls for boycotts in many US states.
The CEOs of the above companies are preparing to take the “hot seat” in a series of financial reporting meetings that will start from April 23.
Tesla and Alphabet will start the day on April 25, followed by Meta and Microsoft on April 30, and Apple and Amazon on May 1. Nvidia will announce its financial results on May 28.
But this is not just a meeting to discuss numbers, but a hearing on Big Tech's survival ability as the technology giants face a geopolitical , commercial and legal "maze" that is more closely intertwined and complicated than ever./.
Source: https://www.vietnamplus.vn/big-tech-mat-trang-4200-ty-usd-sau-3-thang-dau-tien-cua-ky-nguyen-trump-20-post1034356.vnp
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