Tech Giants Boost Stock Buybacks as Capital Expenditures Shrink
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Major global technology firms are accelerating share repurchase programs in 2025, opting to return cash to shareholders amid a slowdown in capital expenditures and a more cautious investment environment.
According to new data from Global Equity Markets Research, the top 10 tech companies by market cap—including Apple, Microsoft, Alphabet, and Samsung—have collectively announced over $250 billion in stock buybacks in the first half of the year, marking a 22% increase compared to H1 2024.
This shift comes as many tech firms scale back aggressive capital spending plans laid out during the height of the AI infrastructure and cloud computing boom. Rising borrowing costs and market volatility have prompted boards to prioritize shareholder returns and balance sheet stability.
“Buybacks are a defensive move in a high-rate environment,” said Kevin Hargreaves, tech analyst at Cedarbridge Global. “Executives are signaling confidence in their valuation while limiting exposure to uncertain growth investments.”
Apple led the way with a $90 billion buyback plan, followed by Alphabet at $70 billion. In Asia, Samsung and Taiwan Semiconductor Manufacturing Co. (TSMC) also increased their repurchase commitments amid weaker-than-expected semiconductor demand.
At the same time, capital expenditures have begun to level off. Amazon reduced its 2025 cloud infrastructure spending forecast by 12%, while Meta Platforms announced a pause on new data center projects, citing efficiency gains and AI optimization.
The return of aggressive buybacks has been well-received by markets. The NASDAQ 100 is up nearly 9% year-to-date, with repurchase-heavy firms outperforming peers. Institutional investors view the trend as a sign of capital discipline and improved earnings visibility.
However, some critics warn that the buyback wave may be masking slowing organic growth. “We’re not seeing the same level of bold innovation bets as we did a few years ago,” said Priya Desai, portfolio manager at NewTown Tech Fund. “This might limit upside over the long term.”
From a financial perspective, companies are using a mix of retained earnings and low-interest legacy debt to finance repurchases. Despite higher yields, many large tech firms remain cash-rich and able to access credit at favorable terms.
In regulatory circles, there’s renewed scrutiny. In Washington and Brussels, lawmakers are again debating the merits of taxing buybacks or placing limits on corporate repurchases during periods of economic uncertainty.
While the broader economy remains on uneven footing, tech companies appear to be hunkering down and refocusing on capital efficiency. Investors will watch closely whether this strategy delivers long-term value—or simply offers short-term support in a turbulent market.
