Following a series of historic events for the modern era, former President Donald Trump has never looked more likely to become president. This is especially relevant to investors in the broader artificial intelligence industry, who are waiting to see how the next administration will handle the regulation of AI. In the case of Trump, American AI stocks are likely to experience improved prospects as the former president has painted himself as pro-tech and in favor of looser regulations around AI development.
Considering how unpredictable AI development is in the current political climate a lighter regulatory environment for the technology could be a boon to investors. Moreover, Trump’s echoes of an “America First” ideology likely mean that American AI stocks are likely to benefit the most from his policies should he return to the White House. As such, here are three AI stocks to keep an eye on heading into the November presidential election.
Palantir (PLTR)
Co-founder of Palantir Technologies (NYSE:PLTR) has both openly endorsed Trump for president and is currently skeptical as to how valuable the AI industry is. Yet his company has still managed to experience rapid growth in recent years, expanding its customer base and delivering strong financial performance. The company’s data-centric platform positions it as a potential beneficiary of the growing AI market.
PLTR’s impressive revenue growth and increased customer acquisition underscore its market traction. However, the company operates in a highly competitive landscape, and its ability to sustain this growth trajectory will likely improve due to Trump’s likely pro-American AI policies.
As such, thanks to Thiel and Trump’s relationship, PLTR stock could see a generous bump following the next election. Thus, investors may want to follow the growing politicization of stock market leaders like Thiel as it could give clues as to what other companies will benefit following the election.
Microsoft (MSFT)
As always, the recent global IT outage underscored that Microsoft (NASDAQ:MSFT) maintains a strong position in the technology industry thanks to its extensive domination of the consumer software market. Now its advances in AI are primarily driven by its strategic partnership with OpenAI. The company’s potential to benefit from potential shifts in regulatory environments is a factor that investors may consider.
However, the rapidly evolving AI landscape presents both opportunities and challenges for Microsoft, particularly in the category of regulation. Should Trump ease these regulations, it’s likely MSFT stock will have more room to grow on the rapid advancement of its AI products.
Thus, investors should closely monitor regulatory developments for insight into how another Trump presidency could accelerate the rate of AI development for American AI stocks. Ultimately, it’s likely the broader market sections will be equally positive if Trump wins re-election.
Alphabet (GOOG, GOOGL)
Something often not mentioned about AI regulation and training is an AI company’s access to data. Interestingly, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) possesses a vast amount of data, a critical asset in the AI race. While the company’s Gemini AI project has not generated the same level of excitement as OpenAI’s ChatGPT, its data advantage remains a significant strength.
One thing that may stand in the way of this advantage could be future regulations restricting Alphabet from effectively utilizing this data, which would impede its ability to grow its AI products. Yet, the next four years could be clear of such regulations should Trump return to the Oval Office.
Thus, Alphabet could be one of the American AI stocks that benefits the most from a looser regulatory stance from the government as it needs unfettered access to the data it collects through its search engines.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.