Trump’s presidency shouldn’t be a problem for Nvidia shares

This is the conclusion of today’s Morning Brief, which you can read Sign in Delivered to your inbox every morning, along with:

Donald Trump’s return to the White House has me thinking about the most popular stock in the world: Nvidia (NVDA).

Will a Trump presidency be good or bad for the AI ​​market’s darling? Did he ever confront CEO Jensen Huang about X? Does Jensen have a particular stance on Trump and could this potentially create headline risk for the company’s stock price?

All of this is important because, as I mentioned, Nvidia has done this become the market – before its inclusion in the former Smokestack index Dow Jones Industrial Average (^DJI).

The short answer to all of these pressing questions is: Who really knows? I can’t find much.

If you do an advanced search on Trump’s X account, you won’t find a single post about Jensen or Nvidia. Browse Jensen’s interviews from the previous Trump presidency, and there isn’t much for Trump to look forward to when he returns to the Oval Office.

“I am optimistic about the outcome, regardless of my overall preference for a more Liberal government. I have confidence in the resilience of the institutions. We will find a way and find a way forward,” Huang said in a November 2016 VentureBeat story after Trump’s first White House victory.

Huang is friends with Tesla (TSLA) CEO and Trump supporter Elon Musk, but it’s unclear what that means for Nvidia’s financial fortunes over the next four years.

Talk to investors, and the initial sentiment is that Nvidia should do well because the factors driving its business are simply too powerful to be wiped out.

“It’s hard to draw a clear line between AI or Nvidia and Trump,” EMJ Capital founder Eric Jackson said on Yahoo Finance’s Opening Bid podcast (video above; listen below). “I think there are some interesting ways AI is entering all areas of technology. But in general, Trump is obviously very pro-growth and pro-low taxes, and that will extend to all of technology, and that includes AI.”

Jackson believes Nvidia could see stronger demand from the Bitcoin mining industry as Trump may open up digital asset markets more.

Nvidia could also benefit from looser regulations for the energy industry, allowing hyperscalers to move more quickly to build out AI infrastructure, Jackson argued.

One risk that needs to be kept in mind, according to Jackson, is that there could be a tariff-related trade war with China. In addition to selling chips in China, Nvidia also has key product development talent in the country. It’s also important to consider what this trade war would mean for China’s relations with major chipmaker Taiwan.

The story continues