While President Donald Trump’s renewed tariff policies are intended to drive a resurgence in American manufacturing, corporate investment trends suggest a very different story.
Instead of pouring money into factories and infrastructure, America’s largest companies are going all-in on technology and innovation.
This divide is most apparent when looking at the investment behavior of the so-called Magnificent 7—Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
According to Lloyds Bank, these seven tech giants are projected to spend a staggering $650 billion in 2025 on capital expenditures (capex) and research and development (R&D). To put that into perspective, this exceeds the entire annual public investment budget of the United Kingdom.
Their spending underscores a broader shift in the U.S. economy, one that prioritizes digital infrastructure and innovation over traditional industrial growth. Despite political rhetoric calling for a revival in domestic manufacturing, business leaders appear more focused on data centers, chips, AI, and software platforms.
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Further illustrating this trend, total nationwide investment in IT hardware and software has surged this year, now representing 6.1% of GDP. Meanwhile, investment in fixed non-residential assets—excluding IT—has posted declines for multiple quarters, signaling a slowdown in traditional physical expansion.
In short, while trade wars and tariffs aim to build factories, corporate America is building code. The U.S. economy’s capital investment engine is being powered more by bits than bricks, and the tech sector continues to shape the country’s economic future.
Kosta Gushterov
Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.
