The outcome of November's presidential election could have major implications for some popular technology stocks. Ahead of the high-stakes race, Raymond James laid out a list of some key technology, media and telecommunications stocks that could benefit in a variety of different outcomes. In 2020, the firm's picks outperformed the S & P 500 by 1% between the election and inauguration — and 7.
7% in the year that followed. Broadly speaking, Raymond James views a Donald Trump reelection as a potential boon for the industry and artificial intelligence — with heightened export controls in the semiconductor industry. It could also lead to increased tensions in China and the obstruction of mergers and acquisitions activity across borders.
"The deregulatory focus of a second Trump administration would likely see less federal oversight and the potential rollback of reporting requirements for AI firms developing frontier models, while also supporting data center development through nuclear energy permitting," wrote Ed Mills, the firm's Washington policy analyst. Meanwhile, a victory by Vice President Kamala Harris may lead to tighter AI regulations focused on safety, ethics and protecting consumers. Mills also anticipates more focus on supporting domestic semiconductor production.
Democrat sweep A Harris presidency and a Democrat-led Congress could be a boon for companies with exposure to climate regulation and "high margin vertical" software companies with less cyclical exposure. .
