The Unexpected Victim Of Trump's Tariffs

From the very beginning, it was fully expected that Trump’s tariff wars would inflict their fair share of collateral damage. 

Today, the picture of exactly who is going to get hit with what is starting to become much clearer.

Among the most egregious injuries from this ‘splash effect’, is going to be big technology, whose infrastructure investments couldn’t be more poorly timed. 

This year alone, tech giants Amazon (AMZN), Microsoft (MSFT), Google (GOOG) and Meta (META) are slated to spend a cumulative $325 billion on the construction of new data centers. 

That’s just one item on their long list of capital expenditures, but it’s likely the biggest one, and the one most dependant on the flow of foreign-made components. 

Last year, the U.S. imported a total of over $125B worth of computer equipment and components from China — a nation which bore the brunt of Trump’s new tariffs this year. 

$33B worth of computer parts came from Taiwan in 2024 and more than $40B from Mexico. 

Who Ends Up Paying It All? Go Look In The Mirror For The Answer

Today, all of these products are going to be about 30% more expensive thanks to the Trump-applied tariffs, with all of these extra costs winding up on the balance sheets of the world’s biggest technology empires. 

With big tech being viewed more and more as an oppressor of the middle class, some may view this as a victory for the everyman, but the truth is, whatever costs these companies incur in the process of doing business is almost always passed right on down to the end user — you and me. 

It’s not a pretty scenario for big tech, however, which is already in a full on scramble to keep up with skyrocketing data demand pushed by growth in traditional web usage and data transmission, as well the rapidly expanding AI sector. 

That $325B figure — which is just about equal to the GDP of Egypt — huge as it may seem to you, is actually not enough to keep things going. 

Let me quickly illustrate exactly why. 

Data Centers Aren't A Luxury. They're As Important As Our Roads and Waterways

Our collective data usage over the last ten years has grown 15 fold. 

By the end of the decade, that figure will grow another 10x to 180 zetabytes per year. 

Tariffs or no tariffs, there simply is not enough money in the coffers, even for these tech giants, to cover that kind of expense and continue to stay in business. 

Because even if we make it to 2030 without some sort of catastrophic data log jam, we will not make it much farther. 

Unless, of course, something comes along to completely change the cost/benefit equation. 

All indicators suggest that that something has already arrived. 

It’s a small, somewhat inconspiquous piece of technology. 

Something basic and ubiquitous, not unlike the transistor or integrated circuit. 

The Next World-Changing Computer Components Are Here

And it’s no less important. 

This new technology is a next-generation connector which allows for the movement of data from one computer terminal to another. 

Today, the crucial function of moving data from machine to machine is done using copper based connectors, but with this new technology emerging that standard is about to change.

Copper connectors move data using electrons — a process which can never operate at 100% efficiency. 

Energy lost during the exchange manifests itself in the form of heat, and it’s that heat which makes data flow more and more energy inefficient the closer you get to bandwidth limits. 

Once those limits are reached, the only answer is to add more machines. 

Replacing Electrons With Light

More machines mean more complexity, more energy required and more costs. 

These new connectors, by contrast, don’t operate on the flow of electrons, but rather the flow of photons. 

They move data using light, which creates no resistance, produces no heat, and increases bandwidth potential by almost an order of magnitude. 

It’s been estimated that a data center equipped with these light-based connectors will move up to 8 times the data without any added energy overhead. 

8 times the data flow means every one of today’s datacenters could potentially do that much more work, with just the moderate one time cost of replacing old copper connectors with photonic connectors. 

The result is instant, dramatic and impossible to ignore… And that’s why right now, the entire tech sector is looking to this single company to save its collective hide.

Retail Investors Would Be Piling Into This Stock If Only…

Of course, you’ve probably never heard of this company because, let’s face it, that’s how the financial world works these days. 

It’s the biggest and best kept secret in the tech world and will probably stay that way until the institutions and professional investors all get a piece of the pie. 

And then it will start making headlines as shares skyrocket the company out of small-cap status and into the major leagues.

By then, all of the big bucks will have been made and you, the retail investor, will be left reading about the success stories in Forbes and the Wall Street Journal. 

Or, alternatively, you could read about this company right now and learn what the pros and industry insiders are already banking on. 

Get the full story, right here.