Magnificent Seven stocks, a market darling responsible for more than half of the S&P 500 Index’s (^GSPC) 25% return in 2024, rise further as President-elect Donald Trump returns to the White House Possibly ready.
President Trump’s pledges to roll back regulations and change tax policy and plans to invest heavily in artificial intelligence are fueling bullish sentiment on Wall Street.
Wedbush’s Dan Ives predicts the technology sector will be a big winner this year, with members of the Magnificent Seven including NVIDIA (NVDA), Microsoft (MSFT), Tesla (TSLA), and Alphabet ( GOOGL) is in his top five “technology winners” for 2025.
“With the Khan/FTC era in the rearview mirror, stronger AI initiatives within the Belt and Road are underway, and the Street further digests the cobwebs of deregulation under the Trump administration in the White House, tech stocks are We expect it to rise 25% in 2025, and a Goldilocks Foundation for Big Tech and Tesla looking beyond 2025,” Ives wrote in a note to clients.
And big tech companies are wasting no time preparing for the next administration. META announced plans to end its fact-checking program, an initiative long criticized by conservatives, and added UFC’s Dana White, an ally of President Trump, to its board of directors. Microsoft and Alphabet each contributed $1 million to President Trump’s inaugural fund, joining the likes of Meta and Amazon (AMZN).
Joe Tigay, portfolio manager at Rational Equity Armor Fund, echoed his bullish stance on tech, advising investors to focus on stocks that benefit from regulatory, tax and trade changes. He said he sees Tesla, Palantir (PLTR) and Amazon as three winners under the next administration.
Ends: January 13th 4:00:01pm EST
TSLA PLTR AMZN
“Tesla is the leader in EVs, and I think the new administration will be kind to Tesla,” Tigay said. “There is a huge amount of money sitting in cloud services in particular. You can find places where there is less and get some of the profits to the consumer.”
Tigay also noted that Palantir’s focus on cost reduction and AI deployment is uniquely aligned with the priorities of the second Trump administration.
IBM CEO Arvind Krishna said at Yahoo Finance’s Invest Conference that the incoming Trump administration will encourage “more innovation and less regulation,” the basis for a more favorable trading environment. He said he hopes to build on this.
“If we have more certainty about the outcome, we will be more willing to engage in things like M&A. …The more certainty we have in the regulatory process and antitrust laws, the more risk we can take. ”Krishna said.
story continues
