Wedbush claims that a Trump victory would be detrimental to Big Tech overall

Markets are on high alert ahead of the US presidential election on Tuesday, with analysts suggesting that the results could have a profound impact on market performance, particularly within the Big Tech sector.

Wedbush analysts have expressed concern that a potential Trump victory may heighten tensions between the US and China, raising fears among global tech investors about possible increases in tariffs and the intensification of the US-China tech conflict.

According to Dan Ives and his team, “A major change in tariffs and a tougher approach toward China could greatly disrupt the supply chain, negatively affect companies like Nvidia (NASDAQ: NVDA), lead to Beijing's retaliatory measures against Apple and Tesla, and slow down the pace of the AI Revolution.”

Additionally, the future of Lina Khan as Chair of the Federal Trade Commission (FTC) is a crucial consideration for Big Tech. Her position may be at risk if Kamala Harris is elected, whereas it is expected to remain if Trump secures another term.

“From the perspective of Big Tech and AI, we view a Harris administration as generally more favorable, while a Trump win could be detrimental for the sector,” the analysts added.

Nonetheless, a potential political gridlock, characterized by mixed results in the Senate and House, could hinder any major policy changes affecting Big Tech in the near term.

Reflecting on the significant earnings reports from the previous week, the Wedbush team highlighted the robust performance of major tech firms like Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL), and Amazon (NASDAQ: AMZN), which reinforced their optimistic outlook for the sector.

These companies demonstrated that the accelerated shift toward cloud services and the foundational elements of the AI Revolution are just beginning to take shape for the years ahead, according to the analysts.

Despite some initial negative reactions to Microsoft’s report, they believe the market will ultimately view these results as positive signs for the growth trajectory of the tech industry leading into 2025.

 

 

 

 

 

 

 

Paraphrasing text from "Investing" all rights reserved by the original author.