The fortunes of Big Tech are diverging in a rapidly changing business landscape, as demand for artificial intelligence fuels growth in cloud and digital ads while consumer electronics take a battering from President Donald Trump’s global trade war. AI came to the rescue of earnings at Microsoft and Google-parent Alphabet in their March quarter, offering investors hope that their billion-dollar bets on the technology would help them ride out the fallout from sweeping U.S. tariffs. Their upbeat commentary stood in stark contrast to gloomy predictions from companies more exposed to tightening consumer budgets: chipmakers Qualcomm, Samsung Electronics, and Intel warned that economic uncertainty caused by Trump’s attempts to reorder global trade was hurting their businesses. The split highlights how enterprise-focused firms are holding steady despite economic jitters, while a pullback in consumer spending is weighing on demand for smartphones, personal computers, and the chips that power them. This could spell trouble for Apple which makes 90% of its products in China and generates about half its revenue from iPhone sales. Amazon.com’s e-commerce business could be hit as well, though its cloud division – which accounts for most of its profit – is expected to hold up like Microsoft and Google’s.

Full report : Big Tech’s fortunes diverge as AI powers cloud, tariffs hit consumer electronics.