U.S. tech stocks experienced a mixed session on Thursday, May 1, 2025. During the regular trading session, technology-related stocks surged, with the Nasdaq gaining 1.5%. Companies like Microsoft and Meta Platforms posted strong results, helping to alleviate concerns about the financial returns on massive AI investments. However, after-hours trading told a different story for Apple and Amazon.
Apple’s stock plummeted 4% after the bell following the company’s quarterly results announcement. While Apple’s financial performance exceeded analyst expectations, CEO Tim Cook revealed that estimated tariffs would add approximately $900 million to the company’s costs for the quarter ending in June if tariff rates remained unchanged. Cook also discussed adjustments to Apple’s supply chain aimed at mitigating the impact of the ongoing trade war initiated by U.S. President Donald Trump.
Amazon’s shares fell 2.5% in after-hours trading after the company reported first-quarter cloud revenue growth and forecasted operating income below analyst estimates.
The tech sector’s mixed performance came after a period of volatility for top U.S. technology and growth stocks, known as the ‘Magnificent Seven.’ These stocks had struggled earlier in 2025 due to investor concerns about the economic fallout from Trump’s tariffs. Although Trump temporarily paused some of his most significant tariffs on April 9, investors remained cautious, closely monitoring company results for signs of tariff impact.
During the regular session, Microsoft’s shares rose 7.6% after the company reported that AI contributions to Azure growth increased to 16 percentage points in its fiscal third quarter, up from 13 percentage points in the previous quarter. Meta Platforms’ shares ended 4.2% higher following its report that AI-powered tools helped attract advertising revenue despite economic uncertainty related to tariffs.
Other AI-focused companies like Nvidia and Broadcom also saw gains, rising 2.5% each. Amazon’s stock ended the regular session up 3.1%, while Apple’s stock closed 0.4% higher. A federal judge’s ruling that Apple had violated a U.S. court order regarding its App Store practices did not seem to significantly impact the stock price during the regular session.
Industry experts expressed mixed views about the tech sector’s outlook. Jake Dollarhide, CEO of Longbow Asset Management, noted that while Apple faced multiple challenges, including tariffs, he remained optimistic about mega-cap tech stocks overall, citing strong results from other companies in the group.
