Trump’s second term will have enormous implications for Big Tech. Here's why.

Published On Nov 13, 2024, 3:00 PM

The article discusses the potential impact of Donald Trump's second term on the Big Tech industry, focusing on issues such as antitrust regulation, AI legislation, and the future of the CHIPS Act. Despite a history of conflict with major tech companies, Trump's administration could bring less aggressive antitrust measures compared to the Biden administration, benefiting companies like Amazon, Alphabet, and Apple. Additionally, Trump's preference for deregulation might affect AI oversight, possibly favoring a more lenient approach. The CHIPS Act, aimed at boosting U.S. semiconductor manufacturing, may also see changes under Trump, with a possibility of accelerated funding and a focus on tariffs over direct support for domestic industry.

Stock Forecasts

With Trump likely to favor less strict antitrust regulations and a focus on enhancing the tech industry, stocks of major players like Amazon and Apple may see positive movement as they navigate a friendlier regulatory environment. Additionally, a lack of stringent AI regulations could spur investment in technology advancements without heavy oversight, further benefitting these companies.

As deregulation gains traction under a Trump administration, companies like Tesla, which is well-positioned in the AI and EV markets, may benefit from less oversight and more favorable conditions for innovation and expansion. Trump's ties to Elon Musk could also solidify this support, creating a conducive environment for Tesla's growth.

Conversely, if Trump's intentions lead to higher tariffs on semiconductors, it could negatively affect tech hardware companies and increase costs for consumers. This could impact companies reliant on imported chips, thereby straining profit margins across the tech industry.

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