SA Asks: Which tech stocks could rise or fall on a Trump win?
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With Election Day less than two weeks away, speculation has been heating up about how the outcome of the U.S. presidential election could impact certain sectors.
Which brings us to today’s SA Asks question: which tech stocks could rise or fall on a Trump win?
Seeking Alpha analysts Uttam Dey, Noah Cox of Noah’s Arc Capital Management and Julian Lin gave us their thoughts on the topic.
Uttam Dey: A Trump administration would see a lot less focus on antitrust regulation. History suggests large-cap tech stocks such as Apple (AAPL) and Microsoft (MSFT) would do well under Trump.
This time around, Tesla (NASDAQ:TSLA) gets a special mention since the stock’s valuation multiple immediately gets the “friends-and-family” discount under a Trump administration.
Bitcoin and crypto ETFs would also get a boost from a crypto-friendly Trump administration that may not focus on regulating the industry as much as the incumbent administration has been. And finally, Trump Media (NASDAQ:DJT) would see some volatile swings that surge on positive sentiment from time to time under a Trump administration.
Investors should note that a Trump administration would not be friendly to Chinese ADRs such as Alibaba (NYSE:BABA) and JD (NASDAQ:JD). So even if valuations appear cheap, the prevailing sentiment under this administration would cap gains for Chinese ADRs.
Noah Cox: I think Broadcom (NASDAQ:AVGO) is at risk with another Trump term. Broadcom is not diversifying away from China fast enough and is exposed to a Trump administration “tough on China” stance.
Tesla (TSLA) would be a big winner in my opinion. CEO Elon Musk is a big supporter and would likely benefit from a reduced regulatory environment.
Julian Lin: I view tech stocks in general as being unaffected by political elections as they benefit from long-term secular tailwinds. However, one tech stock in particular that might have a horse in the race is Palantir (NYSE:PLTR).
A Trump win might lead to increased military spending, of which PLTR (PLTR) could be a surprising beneficiary. An important caveat, however, is valuation as PLTR (PLTR) is trading at nosebleed valuations that arguably have priced in such a scenario — and more.
Readers interested in investing topics tied to the upcoming election can find more information at the upcoming Seeking Alpha Investing Forum: Election 2024; please visit the event website.