Big Tech, AI and Tariffs Shake Up Market Leaders

Microsoft Target Cut But Azure Remains in the Spotlight

On January 21, 2026, Citi lowered its price target on Microsoft Corporation from $690 to $660 while reiterating a ‘Buy’ rating. The broker cited a more cautious short‑term setup heading into fiscal Q2, pointing to mixed reseller surveys and partner checks and weaker PC demand weighing on non‑Azure businesses. Despite the trim, Citi kept Microsoft among its top mega‑cap ideas, expecting Azure to surpass expectations and continue as the company’s primary earnings engine.

The adjustment leaves Citi’s stance essentially unchanged on the longer‑term outlook for Microsoft, which focuses on software, cloud services and devices across Productivity, Intelligent Cloud and Personal Computing. While its non‑Azure units face cyclical headwinds, the firm sees the Azure platform anchoring diversified recurring revenue streams from cloud, enterprise software, Windows and gaming. Separately, Reuters reported that Elon Musk is seeking up to $134 billion from OpenAI and Microsoft tied to alleged wrongful gains from his early support of OpenAI, with Microsoft’s benefit estimated at $13.3 billion to $25.1 billion. Both companies have dismissed the claims, and a jury trial is set for April, though no immediate operational impact on Microsoft was identified.

Nvidia Frames AI as Massive Buildout Amid China Uncertainty

NVIDIA CEO Jensen Huang used a January 21, 2026 appearance at the World Economic Forum in Davos to describe AI as “the largest infrastructure buildout in human history.” He characterized AI as a multi‑layer platform shift spanning energy, chips, data centers, models and applications, noting that this five‑layer stack is already driving demand across construction, power, advanced manufacturing, cloud operations and the application layer. Huang said sustained capital expenditure and software‑led monetization should support Nvidia’s durability beyond short‑term GPU cycles, highlighting more than $100 billion of global venture investment into AI‑native startups as a sign of future compute demand.

That long‑term optimism contrasts with near‑term geopolitical frictions around China. Reports on January 20 indicated Huang planned to visit China later in January, with Nvidia seeking clarity on sales of its H200 AI chip. Chinese customs have signaled restrictions despite U.S. export approval, and server partner Inventec commented that shipments remain “stuck on the China side,” leaving China revenue visibility uncertain. A day later, Bloomberg reported that Chinese regulators had signaled large tech firms including Alibaba, Tencent and ByteDance could begin preparing orders for the H200, suggesting Beijing is close to formally approving the chips. Nvidia shares rose about 1% in pre‑market trading on that report, even as broader futures softened amid a risk‑off week.

Amazon Confronts Tariff Pressure While Building AI Infrastructure

Amazon.com’s January narrative reflects a split between short‑term retail pressure and longer‑term infrastructure positioning. On January 20, Reuters reported that Amazon is seeing tariff‑related price spikes on its e‑commerce platform, with CEO Andy Jassy saying sellers are gradually passing higher costs to consumers following an inventory pull‑forward that ended in fall 2025. Analysts noted active, bargain‑focused shoppers but hesitancy toward higher‑priced discretionary items, adding uncertainty around 2026 demand elasticity. Amazon shares fell in early trading, reflecting investor sensitivity to consumer resilience and a broader market pullback.

At the same time, the company is securing inputs for Amazon Web Services’ data‑center buildout tied to AI. On January 15, Reuters reported that Rio Tinto had been finalized as the copper supplier for Amazon’s data centers. The mining group’s Nuton program is developing proprietary copper bioleaching technologies, and the agreement underscores AWS’s role in structurally increasing copper demand associated with AI infrastructure. While retail margins face near‑term pressure from tariffs and cautious consumers, Amazon continues to invest in cloud computing, storage and digital infrastructure serving global customers.

Visa Navigates Regulatory Risk and New Payment Markets

Credit‑card networks face renewed political scrutiny in the U.S. alongside new market openings abroad. On January 21, 2026, JPMorgan CEO Jamie Dimon warned at Davos that a proposed 10% cap on U.S. credit‑card interest rates could sharply curtail customer access to credit, potentially removing backup credit for up to 80% of Americans. He cited rising regulatory risk for the broader card ecosystem, including Visa, as policymakers weigh cost‑of‑living concerns ahead of U.S. elections. With implementation details unclear, the proposal has revived investor questions around transaction volumes and issuer economics if lending tightens.

In parallel, Visa is expanding its role in digital and mobile payments. Multiple reports on January 21 said Apple is engaging Visa and other card networks to roll out its payments service in India from 2026, potentially increasing Visa’s exposure to one of the world’s fastest‑growing digital payments markets, subject to approvals. That followed a January 15 move enabling Apple Pay support for Chinese‑issued Visa cards, aimed at expanding acceptance across in‑store, in‑app and online transactions and reinforcing cross‑border and mobile payment momentum. Visa continues to operate its VisaNet network for secure electronic transactions while balancing regulatory developments in mature markets with growth opportunities in emerging ones.

Apple Draws Mixed but Upbeat Analyst Views Ahead of Earnings

Apple entered its earnings season with diverging but generally constructive analyst positions. On January 21, UBS reaffirmed a ‘Neutral’ rating with a $280 price target, citing strong early demand for the iPhone 17 series. Supply‑chain checks suggested a modest pull‑forward of demand into the December quarter amid rising memory costs, prompting UBS to lift iPhone unit estimates by roughly 12%‑13% to 84.5‑85 million units. The firm said memory cost inflation likely supported slightly stronger late‑quarter sell‑through and short‑term upside but pointed to long‑term margin sensitivities.

On the same day, Goldman Sachs reiterated a ‘Buy’ rating and a $320 price target, arguing that Apple’s recent 4% share pullback was driven by short‑term concerns over costs and Services growth rather than deteriorating fundamentals. Goldman projected 9% iPhone revenue growth in both fiscal 2026 and 2027 and 13% year‑over‑year growth in fiscal Q1 2026, reflecting pricing mix and an expected 26% surge in China shipments. Longer‑term, the bank cited the anticipated iPhone Fold launch and software‑driven upgrade cycles as key growth catalysts for Apple’s portfolio of consumer electronics and software‑based services.

Leadership Shifts and Portfolio Moves at Coca‑Cola and Berkshire

Two large U.S. names reported meaningful strategic changes in mid‑January. On January 16, Coca‑Cola announced leadership and organizational changes aimed at accelerating consumer‑centric execution and digital transformation as Henrique Braun prepares to take over as CEO on March 31, 2026. The company created a new Chief Digital Officer role for Sedef Salingan Sahin to unify digital, data and operational excellence, with the goal of speeding decision‑making and embedding technology across markets. Coca‑Cola also reassigned senior roles, giving Chief Marketing Officer Manolo Arroyo an expanded customer and commercial remit and retaining John Murphy as CFO, while introducing new regional groupings to emphasize emerging‑market growth and agility.

Separately, a January 20 Reuters report said Berkshire Hathaway is possibly exiting its 27.5% stake in Kraft Heinz after a decade‑long investment that has fallen short of Warren Buffett’s expectations. Kraft Heinz filed a prospectus supplement with the SEC for the potential resale of Berkshire’s 325.4 million shares, valued at about $7.7 billion at a prior close of $23.80. Kraft Heinz shares fell 4.9% in after‑hours trading following the filing. The move follows earlier write‑downs totaling nearly $6.8 billion and comes as Kraft Heinz prepares to split into two companies later in 2026, a plan that Buffett and Berkshire CEO Greg Abel previously criticized. Earlier in the month, Berkshire completed a $9.7 billion acquisition of OxyChem from Occidental, signaling a reallocation toward stable, cash‑generative industrial assets.

Eli Lilly Wins FDA Breakthrough Status for Novel Cancer Drug

In healthcare, Eli Lilly received a regulatory boost for its oncology pipeline. On January 20, Guggenheim made a small reduction in its price target on Eli Lilly from $1,163 to $1,161 while reiterating a ‘Buy’ rating in what it called a routine model update ahead of Q4 results. The same day, Eli Lilly announced that the FDA had granted Breakthrough Therapy designation to sofetabart mipitecan (LY4170156) for adults with platinum‑resistant ovarian, fallopian tube or primary peritoneal cancer progressing after prior therapies. The designation, based on encouraging Phase 1a/b data, is expected to accelerate development timelines and regulatory engagement.

Presentations at ASCO 2025 and ESMO 2025 showed responses across all dose levels and folate receptor alpha expression, including in patients who had progressed on mirvetuximab, along with a favorable tolerability profile and limited serious safety signals. The candidate is advancing into the global Phase 3 Framework‑01 trial and is positioned as a potential differentiated entrant in a high unmet‑need ovarian cancer market. Eli Lilly continues to focus on medicines spanning diabetes, oncology, immunology and neuroscience.