Investing in a Trump-Backed Regulatory Normalization Play

The Trump administration's 2025 regulatory agenda has created a unique window for investors to capitalize on political stability in high-conviction tech and infrastructure sectors. By prioritizing deregulation, AI leadership, and strategic infrastructure modernization, the administration has catalyzed a surge in private-sector investment and stock performance among key players. This analysis explores how these policy shifts are reshaping asset allocation strategies, with a focus on companies and sectors poised to benefit.

Tech Sector: AI and Deregulation Fuel Innovation

The revocation of Biden's Executive Order 14110 on AI and the introduction of the “Removing Barriers to American Leadership in Artificial Intelligence” executive orderTech law in 2025: a look ahead at AI, privacy and social media regulation under the new Trump administration^[1] have signaled a clear pivot toward minimizing regulatory hurdles. This shift has directly benefited firms like Nvidia, Oracle, and SoftBank, which are central to the $500 billion Stargate AI infrastructure project7 U.S. tech policies to watch in 2025^[2].

Nvidia, a dominant force in AI hardware, has seen its stock surge nearly 33% in 2025, with a 5% jump following the Stargate announcementWhy Nvidia, Microsoft, Oracle, Arm, and Other AI …^[3]. SoftBank's Q1 2025 net income of 421.82 billion yen was largely driven by its investments in Nvidia and the Vision Funds, boosting its stock by 5.75%Nvidia Stake, Vision Funds Boost Softbank’s Q1 Results^[4]. Oracle, a key partner in Stargate, experienced a 6.8% stock gain on the day of the project's announcement, reflecting investor confidence in its data center infrastructureOracle Stock Surges As Trump Unveils Stargate AI Plan^[5].

The administration's focus on reducing AI safety testing oversightTech law in 2025: a look ahead at AI, privacy and social media regulation under the new Trump administration^[6] has further accelerated innovation cycles, though it raises long-term risks related to bias and misinformation. For now, however, the market's enthusiasm for rapid deployment of AI systems—particularly in national security and energy applications—suggests continued momentum for these firms.

Infrastructure and Energy: Deregulation Meets Strategic Modernization

The Trump administration's infrastructure agenda is twofold: modernizing federal technology and prioritizing energy projects to support AI and industrial growth. The Department of Government Efficiency (DOGE), led by Elon Musk, is spearheading a “Software Modernization Initiative” to upgrade federal IT systemsTrump’s Moves to Modernize U.S. Technology Policy^[7], creating opportunities for cloud and cybersecurity firms.

Meanwhile, the Stargate project's emphasis on localized AI supercomputers7 U.S. tech policies to watch in 2025^[8] has spurred demand for energy infrastructure. While the administration has suspended offshore wind leasing and terminated clean energy grantsTrump administration cancels clean energy grants as it^[9], renewable energy projects like the Hagersville Battery Energy Park in Ontario (a 300 MW project receiving CAD$538 million in financingInfrastructure Quarterly: Q1 2025 | CBRE Investment^[10]) highlight the sector's resilience. The U.S. Energy Information Administration notes that solar and battery projects will account for 81% of new power generation in 2025America's clean-energy industry is growing despite^[11], driven by data center and AI energy demands.

Investors should also monitor the administration's “America First Trade Policy” memorandumFlurry of Trump Administration Executive Orders Shakes Up Tech Policy^[12], which could reshape supply chains and incentivize domestic manufacturing of semiconductors and telecom equipment. This aligns with Trump's criticism of the CHIPS Act of 2022 and his push for tariffs to bolster domestic productionTrump Administration 2.0 – Tech Transactions Update^[13].

Risk Considerations and Strategic Allocation

While the regulatory environment appears stable, investors must remain cautious. The administration's termination of clean energy grantsTrump administration cancels clean energy grants as it^[14] and focus on fossil fuels could create headwinds for renewable energy firms. However, the Deloitte Renewable Energy Industry Outlook notes that cleantech and AI industries are competing for 24/7 clean energy, suggesting long-term demand2025 Renewable Energy Industry Outlook | Deloitte Insights^[15].

For asset allocation, prioritize companies directly aligned with Trump's deregulatory and infrastructure initiatives:
1. AI Hardware and Infrastructure: Nvidia, Oracle, and SoftBank.
2. Energy Transition: Firms involved in battery storage and grid modernization.
3. Deregulated Sectors: FinTech players benefiting from relaxed crypto regulations, such as those involved in the national crypto reserveTrump Revokes AI Executive Order: Impacts on Regulation of Artificial Intelligence^[16].

Conclusion

The Trump administration's regulatory normalization has created a fertile ground for tech and infrastructure investments. By leveraging deregulation, AI leadership, and strategic energy policies, investors can position themselves to capitalize on sectors experiencing rapid growth. However, balancing short-term gains with long-term risks—particularly in renewable energy—will be critical for a resilient portfolio.