Amazon and Apple have reported their first-quarter 2025 earnings amid growing concerns over the impact of tariffs on their businesses. Apple has faced rating downgrades largely due to tariff-related challenges, although analysts note that the direct financial hit from tariffs amounted to approximately $0.05 per share or about $900 million for the quarter, which was less severe than initially feared. Beyond tariffs, Apple is also grappling with challenges related to artificial intelligence (AI). Meanwhile, Amazon's retail segment is directly affected by tariffs, and its AWS cloud business, previously considered resilient, is now experiencing indirect tariff-related pressures. Despite these challenges, major technology companies continue to invest heavily in AI, with firms described as "hyperscalers" maintaining strong capital expenditure commitments to AI development. Analysts and market watchers emphasize that AI demand is accelerating beyond expectations, and the long-term AI investment cycle remains intact. The ongoing tariff hikes and reduced imports from China are factors to watch in the coming months as they influence the broader outlook for these tech giants.