This is the Takeaway from the Morning Brief today, which is possible enter to receive in your inbox every morning along with:
Donald Trump’s return to the White House got me thinking about my favorite stock in the world, Nvidia (NVDA).
Will a Trump presidency be good or bad for the AI ​​market? Have they ever taken CEO Jensen Huang to task X? Does Jensen feel a certain way about Trump, and could that increase headline risk to the company’s stock price?
All this is important since, as I said, Nvidia has it become a market – even before it was included in the former smokestack index known as the Dow Jones Industrial Average (^DJI).
The short answer to all these important questions is, who knows? I can’t find much.
Search Trump’s X account further, and you won’t find a single post on Jensen or Nvidia. Jensen’s Scour interview from Trump’s previous presidency, and there’s not much Trump can do when he returns to the Oval Office.
“I’m optimistic about the outcome, regardless of how, on balance, I prefer a more liberal government. I have faith in the resilience of institutions. We will find a way through and find a way forward,” Huang said in a November 2016 VentureBeat story after Trump won The first White House.
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 vibe is that Nvidia needs to do well, because the factors driving the business are simply too strong to ignore.
“It’s hard to draw a straight 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 that AI seems to infiltrate all corners of technology. But in general, obviously, Trump is very pro-growth, low taxes, and he’s going to sweep all technology and that includes AI.”
Jackson thinks Nvidia could see stronger demand from the bitcoin mining industry, as Trump could open up the digital asset market more.
Nvidia could also cash in on looser regulations on the energy industry, freeing up hyperscalers to go faster with AI infrastructure development, Jackson thinks.
One risk to watch, Jackson said, is that a tariff-related trade war with China occurs. Nvidia not only sells chips in China but has significant product development talent in the country. You should also consider what this trade war means for China’s relationship with major chip producer Taiwan.
