The "Mag 7" giants of America invest 650 billion USD in technology and R&D

Although President Donald Trump is promoting a wave of domestic manufacturing revival through tax policies, major corporations in America – especially the "Mag 7" group consisting of Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla – still prioritize spending on "bits" rather than "bricks".

According to Lloyds Bank, the Mag 7 group alone is expected to spend up to 650 billion USD on capital investment (capex) and R&D in 2025 – more than the annual public investment budget of the UK government.

The GDP data for Q2 in America shows that investment in IT has increased by over 12%, while private investment outside of technology has decreased for the fourth consecutive quarter. Spending on IT equipment and software currently accounts for 6.1% of GDP and more than 40% of total private fixed investment.

Analysts believe that the FOMO effect (fear of missing out) before the AI wave is a factor driving significant capital into technology. Since the launch of ChatGPT at the end of 2022, both Bitcoin and Nvidia stocks have surged, demonstrating a strong connection between technology and the cryptocurrency market.

Under the Trump administration, the crypto market also benefited from friendly policies, including bipartisan support for legislation on digital assets and stablecoins, as well as strategic appointments in the financial agency.