Trump win, Red sweep should be ‘very robust’ for tech and boost AI: Wedbush
President Trump’s historic victory and re-election and a potential Republican sweep should result in a “very robust bullish market reaction” for technology and be beneficial for artificial intelligence, Wedbush Securities said.
“We expect a very robust bullish market reaction this morning from a Trump win, with Big Tech and Tesla front and center. China tariffs and a harsher stance on Beijing from Trump will need to play out over the coming year for its impact on the supply chain/chips and Big Tech,” analysts at the firm wrote in a note to clients. “That said, we would expect a strong AI focus out of the gates from Trump for US Big Tech players, Khan out at the FTC, and Musk’s big bet on Trump being a home run for Tesla (TSLA).”
The analysts said that Trump’s return to the White House could be worth as much as $40 to $50 per share for Tesla.
The analysts added that there will likely be “significant AI initiatives” coming from Washington D.C. that should benefit companies such as Microsoft (MSFT), Amazon (AMZN), Google (NASDAQ:GOOG) (NASDAQ:GOOGL), and other tech players, analysts at the firm added. They also said “major AI initiatives” could come from agencies such as the Department of Defense and boost companies like Palantir (PLTR).
While it’s possible that the Inflation Reduction Act (which was signed into law by President Biden) could have some changes or revisions that may be a negative for Intel (INTC) and some other companies, the broader impact of a Trump Administration is likely to benefit AI and thus, Big Tech, the analysts said, while also adding that Federal Trade Commission Chairwoman Lina Khan may wind up leaving the agency, which could “be a huge catalyst for more deal flow in the Big Tech landscape.”