NVDA
NVIDIA
-- 143.180 TSLA
Tesla
-- 410.715 PLTR
Palantir
-- 80.363 AAPL
Apple
-- 222.360 TEM
Tempus AI
-- 53.335 
How Trump's Presidency Could Affect the Mag 7？
Investors are wagering on deregulation and tax cuts for major corporations following Donald Trump's victory, fueling a broad rally in mega-cap tech stocks.
Tesla Set for Major Upside Amid Political Shifts
$Tesla (TSLA.US)$ emerged as a standout among the "Mag 7" stocks, jumping nearly 18% over two sessions to $296.9, the highest since September 2022.
Tesla's CEO Elon Musk is considered a key ally of Donald Trump, contributing over $130 million to his campaign and attending rallies. Trump has proposed a government role for Musk to cut federal spending, potentially reshaping agencies that regulate Tesla. Musk aims to use this influence to hasten approvals for fully autonomous vehicles. Current rules restrict manufacturers to deploying only a few thousand autonomous vehicles annually.
Trump's stance on electric vehicles has shifted to supportive, partly due to Musk's endorsement. At an August rally, Trump stated, "I’m for electric cars... because Elon endorsed me very strongly."
Gene Munster of Deepwater Asset Management posits that a Trump presidency could accelerate Tesla's autonomous driving efforts, with regulatory hurdles overshadowing technical ones. If Tesla secures 50% of the US ride-hailing market by 2030, its revenue could rise by 20%, or about $5 billion.
Impact on Other "Mag 7" Tech Giants
Trump’s domestic deregulation and international tariff hikes could impact tech giants.
1.Antitrust Easing: Apple, Amazon, and $Meta Platforms (META.US)$ might see reduced antitrust scrutiny.
Wall Street anticipates Trump will dismiss FTC Chair Lina Khan, who has challenged tech mergers. In 2023, the FTC sued Amazon for monopolization, and the DOJ accused Apple of monopolizing the smartphone market.
Wedbush analyst Dan Ives noted on Wednesday that FTC Chair Lina Khan has been a significant obstacle for Big Tech, challenging various deals in the tech sector. He believes that if Khan were to be removed, it "could be a huge catalyst for more deal flow in the Big Tech landscape."
$Alphabet-C (GOOG.US)$ might be an exception. Trump supported breaking up Google in his first term, but in a recent interview, he suggested it might not be necessary for Alphabet to divest parts of its business. Google faces multiple antitrust lawsuits from the Biden-era DOJ, including allegations of illegally monopolizing internet search and ad tech markets, risking a breakup.
2.AI Acceleration: $Microsoft (MSFT.US)$, $Amazon (AMZN.US)$, and other AI-focused companies could encounter less regulation.
The Trump administration may adopt a more relaxed stance on technology and AI compared to its predecessor. Trump has pledged to repeal Biden’s 2023 executive order on AI risk regulation. His tech supporters, including a16z founder Andreessen, are AI acceleration proponents.
Additionally, the Trump administration might prioritize nuclear energy and AI infrastructure, facilitating reactor construction and data center connectivity.
3.Chip Policy Adjustments: Nvidia might benefit from changes in chip export policies.
Trump criticizes Biden's CHIPS Act as a wasteful effort to attract foreign chip companies to the US.
Adam Posen, director at the Peterson Institute for International Economics, suggests most of the CHIPS Act will remain intact. The Trump administration "may try to reinterpret the CHIPS Act, distributing funds slightly differently from Biden," but he doesn’t foresee a complete overhaul.
Changes in chip export policies could favor $NVIDIA (NVDA.US)$. Currently, Nvidia's advanced AI chip exports to China and certain Middle Eastern countries are restricted. Under Trump, exports to China may remain limited, but licenses for Middle Eastern sales could be easier to obtain.
4.Tariff Increases: Apple, reliant on global supply chains, could be adversely affected by significant tariff hikes.
As most $Apple (AAPL.US)$ products are manufactured in China, increased tariffs might compel the company to pass costs onto consumers.
Investors should note that campaign promises and actual policy implementations can differ, necessitating close monitoring of policy execution and pace.
Sources: Barron's, Yahoo Finance, CNBC, Fortune
by moomoo News Olivia
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News Global
Moomoo News Official Account
Follow the top news of US market!
56K
Followers
7
Following
30K
Visitors
Follow
Discussing
Trump 2.0 Era: What's the next opportunity in the markets?
▪️Could Trump's crypto policies potentially benefit the crypto market? ▪️Might his tariff policies have a positive effect on Chinese stocks
Michael McCarthy CCO
Jan 3 11:57
Ask a strategist - Trump's first day
Ultratech : well he lashed out at them frequently. wrecked havoc on economy denying America of covid warnings shouldn't have dragged pandemic on by suggesting to deny cdc guidelines. 4 years of higher rates to fix his mess just to bring him back to take credit for it before fking things up more
Jarrod Reynolds Ultratech : Turn out a lot of those Covid guidelines were complete BS genius!! Got any other crap propaganda to throw around!!!
MultiBaggers : USA will have a taste of its own bitter medicine for the next 4 years. Good luck to them
Debbielee Thomsen : I hope our Country gets back to being blessed!
103152649 : wow
MosesW :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Ultratech MultiBaggers : just as inflation cools they bring back the guy who caused it
Derpy Trades : @Ultratech - - it says you've blocked me even though we've never talked, but... Did you stop for one second to see how many trillions the Biden/Harris administration has been pumping out? Difference being we're NOT still in a global pandemic, but they don't appear to have gotten the memo.
Walter McHoul Derpy Trades : Amen brother