Investing.com — Wedbush analysts expect a strong bullish reaction from technology stocks to a likely victory for Donald Trump in the US presidential election, especially in the event of a red sweep in Congress.
The investment bank believes that a Trump administration would prioritize AI initiatives in the US, which would benefit major tech companies such as Microsoft (NASDAQ:), Amazon (NASDAQ:) and Google (NASDAQ:). These initiatives, especially within government agencies like the Department of Defense, could also provide a big boost to AI-focused companies like Palantir (NYSE:).
While the Inflation Reduction Act (IRA) may see major revisions that will negatively impact companies like Intel (NASDAQ:), the focus on AI is expected to “be central and beneficial to Big Tech,” wrote analysts led by Dan Ives.
Another potential benefit for Big Tech under the Trump presidency could be Lina Khan’s departure from the Federal Trade Commission (FTC). Khan was a major challenger for the industry, scrutinizing and challenging tech deals.
The market sees her potential exit as a catalyst for increased deal flow within the sector. The influence of Elon Musk, a Trump supporter, could also hasten Khan’s departure, removing a substantial obstacle for tech companies.
“While antitrust issues still exist between the DOJ and Google as well as Apple (NASDAQ:), Khan potentially at the FTC would be a huge positive for Big Tech,” analysts noted.
But the biggest beneficiaries of a Trump victory will be Tesla (NASDAQ:) and Musk, according to Wedbush. While the broader electric vehicle (EV) industry could suffer from the elimination of EV rebates and tax incentives, Tesla’s unparalleled scale and scope could give it a clear competitive advantage in an unsubsidized market.
Furthermore, the Trump presidency could continue to impose higher tariffs on China, deterring Chinese EV manufacturers from entering the US market and further strengthening Tesla’s position.
The former president’s victory could also accelerate Tesla’s Full Self-Driving (FSD) and autonomous initiatives, along with those of other players such as Waymo.
“Autonomous fast tracking will be key for investors in this scenario as some of Tesla’s 2026/2027 targets could be accelerated to stay on track with China’s autonomous driving timeline currently underway” , analysts explained.
“We believe a Trump victory could add $40-$50 per share to Tesla’s stock if autonomous/FSD is accelerated from 2025 and tailwinds for Cybercab,” she added.
Shares of Tesla rose about 3% in premarket trading Wednesday as investors reacted to NBC News’ count that Trump had gained a significant lead over Harris in the Electoral College votes.
Musk last month contributed nearly $75 million to America PAC, a super political action committee he founded earlier this year to support the Republican candidate.
Trump has promised to appoint Musk to head a government efficiency commission if he wins the election.
