Big tech between AI, cloud, and new global challenges
Between AI, tariffs, and cloud, market dynamics and strategies are shifting. Mashfrog CEO Edoardo Narduzzi interviewed by Class CNBC on the MAG7 and emerging tech leaders.
The MAG7 amid light and shadow, the global Cloud challenge awaiting Europe as well, and the rise of new players who could bring surprises in the medium to long term. Mashfrog CEO Edoardo Narduzzi outlines a broad view of the current state and outlook of global high tech in an interview with Class CNBC: trends and expectations, disappointments and surprises, all in a context where AI adoption is redefining competitive dynamics.
Microsoft leads, Apple slows down, Amazon struggles
The current outlook for American big tech paints a mixed picture. On one hand, Microsoft stands out as the most solid giant, well-positioned to lead the digital transformation. On the other, Apple and Amazon are showing signs of difficulty, despite a broader context in which the overall numbers seem to reassure the markets. "Microsoft is probably the most complete company and the one best equipped to interpret the changes underway," said Narduzzi. Analysts are particularly convinced by two key indicators: the growth of cloud services and the adoption of AI-based solutions by already acquired customers.
Amazon’s results are less reassuring, as it fails to meet analysts’ expectations in its cloud division, and the situation is even more critical for the Cupertino giant. Apple is reporting a decline in revenue in China and Europe, holding steady only in the United States, and most importantly, still lacks a clear vision for its AI strategy. It remains unconvincing, despite efforts to reassure investors with plans to shift part of its production to India and Vietnam.
Cloud challenge and Europe’s role
At the heart of today’s technological competition is the cloud. Microsoft has outperformed analysts’ expectations, while Amazon has fallen short. The structural difference between the two offerings is substantial, Narduzzi notes: 'Microsoft has an almost end-to-end solution stack, starting from the cloud and reaching all the way to Software as a Service at the level of the individual employee workstation, allowing for direct and integrated customer management.' Amazon, on the other hand, is limited to cloud infrastructure, delegating the development of the upper layers of its technological offering to partners.
But the future of the cloud isn’t solely an American game. Europe could soon take a leading role with its own infrastructure — "an Airbus of the cloud," as Narduzzi calls it — capable of taking market share not only from U.S. big tech, but also in regions like Canada, Brazil, Asia, and the Middle East. This scenario could be accelerated by the protectionist policies of the Trump administration, increasingly inclined to push toward a more autonomous technological reorganization of the Old Continent.
Beyond the giants: new players are emerging
As traditional big tech firms face new challenges, other companies are entering the market decisively, backed by native adoption of AI-based technologies. One such example is Shopify, an increasingly competitive e-commerce platform that, as Narduzzi points out, "is about to announce a full integration of an artificial intelligence solution into its platform." This will allow users to almost fully automate the management of product catalogs, offering personalized and efficient experiences.
According to Narduzzi, another player that investors should keep an eye on is Reddit: "It recorded 30% year-over-year revenue growth and functions as a sort of search engine within the AI space," with tremendous value stemming from a highly active community of over 400 million weekly users and an extremely well-profiled data base. Reddit, like other emerging players, could represent a new frontier for investors, much like what happened with Nvidia in the chip sector.
The strategic leverage of Artificial Intelligence
The adoption of AI is redefining competitive dynamics. Microsoft currently appears to be reaping the greatest benefits from its AI investments, thanks to integrated solutions like Copilot, which enhance its product suite and strengthen customer loyalty. But the potential of AI isn’t limited to the boundaries of major players, and "we also need to focus on those that could become the next big tech companies," stated Narduzzi.
The ability to effectively integrate AI solutions into widely used platforms represents a crucial competitive advantage. AI thus becomes not only an enabling technology, but also a strategic lever to rapidly scale the market, gain market share, and profoundly transform business models and customer relationships.
