Trump Administration Spares Amazon and Others from Tariffs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy AMZN?
Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly.NEXT SET OF TARIFFS:Donald Trump's administration plans to spare Amazon, Google, Microsoft, and others from tariffs on chips as they work to build data centers powering AI, Aime Williams of The Financial Times. These exemptions underscores President Trump's intention to impose tariffs on chips and incentivize chipmaking in the U.S. while offering relief to companies powering AI expansion in the U.S.BANGLADESH TARIFFS:The United States of America and the People's Republic of Bangladesh haveto an Agreement on Reciprocal Trade that will provide U.S. and Bangladeshi exporters "unprecedented access to each other's respective markets," the White House announced. "Bangladesh has committed to provide significant preferential market access for U.S. industrial and agricultural goods, including: chemicals; medical devices; machinery and motor vehicles and parts; information and communicational technology equipment; energy products; soy products; dairy products; beef; poultry; and tree nuts and fruit. The United States will reduce the reciprocal tariff rate, as initially set forth in Executive Order 14257 of April 2, 2025, to 19 percent on originating goods of Bangladesh, and will identify products from the list set out in Annex III to Executive Order 14346 of September 5, 2025 to receive a zero percent reciprocal tariff rate. The United States commits to establish a mechanism that will allow for certain textile and apparel goods from Bangladesh to receive a zero reciprocal tariff rate," the White House stated.ENDANGERMENT FINDING:The Trump administration plans to repeal the Obama-era scientific finding serving the legal basis for federal greenhouse-gas regulation, Meridith McGraw and Benoit Morenne of The Wall Street Journal, citing U.S. officials. This reversal targets the "endangerment finding" from 2009, which concluded six greenhouse gases pose a threat to public health and provided the underpinning for the Environmental Protection Agency's climate rules. Publicly traded companies in the space include Exxon Mobile, BP, Chevron, TotalEnergies, ConocoPhillips.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 199.600
Low
175.00
Averages
280.01
High
325.00
Current: 199.600
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant AI Budget Increase: Amazon plans to raise its capital expenditures to $200 billion for 2023, significantly exceeding Wall Street's expectation of $150 billion, which will decelerate free cash flow and impact short-term stock performance.
- Strong AWS Growth: Amazon Web Services (AWS) generated $35.6 billion in revenue during Q4, reflecting a 24% year-over-year growth, with a staggering $244 billion backlog indicating robust market demand and substantial future growth potential.
- Strategic Partnership Advantages: Amazon's collaboration with Anthropic is establishing a cost-efficient, vertically integrated AI ecosystem, and while initial investment returns may lag, this strategy is expected to enhance the company's competitive edge and market position in the long run.
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- Search Business Stability: Alphabet's search business remains robust amid economic uncertainty, with Google Services' operating income increasing by 22% last quarter, demonstrating that its core business continues to be a strong cash flow source supporting future investments.
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- Giant Investment Plans: Tech giants like Amazon, Alphabet, and Microsoft have announced massive AI investments, with Amazon planning to spend around $200 billion despite only $11.2 billion in trailing twelve-month free cash flow, raising concerns about sustainability while potentially boosting Nvidia's sales in the short term.
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- Investor Focus: As a major investor in Anthropic with over $8 billion invested, Amazon could face negative stock price impacts if the military terminates its contract with Anthropic, particularly amid a broader selloff in technology stocks.
- Contractual Risks: The Pentagon is considering designating Anthropic as a 'supply chain risk,' meaning any company doing business with the U.S. military would need to sever ties with Anthropic, which could severely limit its future business opportunities.
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See More
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See More
Amazon's AI Investments Amid Stock Volatility
- Stock Price Fluctuations: Amazon's stock surged about 7% to $247 per share at the start of the year but has since dropped approximately 14% over the last month, primarily due to the ongoing decline in software stocks, prompting investor sell-offs.
- Significant AI Budget Increase: Amazon plans to raise its capital expenditures to $200 billion for 2023, significantly exceeding Wall Street's expectation of $150 billion, which will decelerate free cash flow and impact short-term stock performance.
- Strong AWS Growth: Amazon Web Services (AWS) generated $35.6 billion in revenue during Q4, reflecting a 24% year-over-year growth, with a staggering $244 billion backlog indicating robust market demand and substantial future growth potential.
- Strategic Partnership Advantages: Amazon's collaboration with Anthropic is establishing a cost-efficient, vertically integrated AI ecosystem, and while initial investment returns may lag, this strategy is expected to enhance the company's competitive edge and market position in the long run.
See More
2026 Portfolio Reset Strategies Amid Market Volatility
- Alphabet Cloud Growth: Despite a 11% decline in Alphabet's (GOOG) stock since early February, its cloud computing segment grew 48% year-over-year in Q4 2025, with operating profits up 53%, indicating strong potential in AI and expected sustained growth in the coming quarters.
- Search Business Stability: Alphabet's search business remains robust amid economic uncertainty, with Google Services' operating income increasing by 22% last quarter, demonstrating that its core business continues to be a strong cash flow source supporting future investments.
- SoFi Customer Growth: SoFi Technologies (SOFI) has surpassed 13.6 million customers, an 8% increase from Q3, reflecting the success of its online banking model in a digital environment, even as its stock has fallen nearly 40% from its November peak.
- Analyst Optimism: Despite waning market confidence in SoFi, analysts maintain a consensus price target of $26.94, representing a 37% upside from current levels, indicating recognition of its future growth potential and an anticipated stock rebound soon.
See More
Analysis of Nvidia's Recent Stock Underperformance
- Strong Financial Performance: Despite Nvidia's (NVDA) 2% year-to-date stock decline, its latest earnings report indicates accelerating revenue growth in Q3, with strong guidance for Q4, suggesting robust market demand in the AI sector that could drive future sales growth.
- Giant Investment Plans: Tech giants like Amazon, Alphabet, and Microsoft have announced massive AI investments, with Amazon planning to spend around $200 billion despite only $11.2 billion in trailing twelve-month free cash flow, raising concerns about sustainability while potentially boosting Nvidia's sales in the short term.
- In-House Chip Programs Rising: Amazon's Trainium2 AI chip business is generating over $10 billion in annual revenue and is fully subscribed, indicating that competitors are rapidly developing their own chip solutions, which could erode Nvidia's market share, especially as price competition intensifies.
- Valuation Pressure: Nvidia's current P/E ratio stands at 45, with a forward P/E of 24; while the company is experiencing rapid earnings growth, any slowdown in AI chip demand or the emergence of lower-cost alternatives from competitors could pressure Nvidia's pricing power and margins, leading to further stock price declines.
See More
Anthropic Refuses Military AI Use, Heightening Tensions
- Refusal of Military Cooperation: Anthropic's refusal to allow the U.S. military to use its AI for surveillance and battlefield operations has escalated tensions, potentially jeopardizing its relationship with the U.S. government.
- Investor Focus: As a major investor in Anthropic with over $8 billion invested, Amazon could face negative stock price impacts if the military terminates its contract with Anthropic, particularly amid a broader selloff in technology stocks.
- Contractual Risks: The Pentagon is considering designating Anthropic as a 'supply chain risk,' meaning any company doing business with the U.S. military would need to sever ties with Anthropic, which could severely limit its future business opportunities.
- Market Sentiment Shift: Despite Amazon's stock dropping over 18% in the past eight trading sessions, retail sentiment on Stocktwits remains 'bullish,' indicating investor confidence in Amazon's future, particularly due to the strong performance of its AWS services.
See More
Investor Opportunities and Risks in the Bull Market
- Market Performance Analysis: The current bull market has seen the best three-year performance since the 1990s dot-com bubble, and while valuations have reached historical highs, the artificial intelligence (AI) revolution continues to drive stock market growth, indicating strong investment potential.
- Nvidia's Growth Potential: Nvidia (NVDA), as an AI chipmaker, has become the largest company globally by market cap, with a current share price of $190; despite a P/E ratio of 47, its forward P/E of 24 suggests reasonable valuation and significant future growth potential.
- Amazon's Capital Expenditure: Amazon (AMZN) plans to allocate $200 billion for capital expenditures in 2026, a 50% increase from last year, raising investor concerns about the scale of spending; however, this investment is crucial for long-term success, particularly in AI and AWS.
- Portfolio Recommendation: Investing $1,000 in Nvidia and Amazon stocks allows for the purchase of five shares each, combining their growth potential and reasonable valuations to create a robust investment portfolio that aligns with the current market environment.
See More
Broadcom Could Emerge as New AI Giant
- Significant AI Growth: Broadcom's AI semiconductor revenue surged 74% year-over-year in the latest quarter, with projections indicating it will reach $8.2 billion in Q1, showcasing strong market demand and growth potential.
- Record Backlog: The backlog for Broadcom's AI switches has exceeded $10 billion, reflecting the company's critical role in AI data center buildouts and strong market confidence.
- Product Differentiation: Broadcom has launched the industry's first Wi-Fi 8 access point and switch system, aimed at enhancing security and speed for enterprises using AI, thereby further solidifying its market position.
- Competitive Strategy: Broadcom's custom XPUs complement Nvidia and AMD's general-purpose GPUs, allowing the company to grow rapidly in specific niches while avoiding the pressures of direct competition.
See More
