8 Areas Trump Will Address with Executive Orders on Presidency: Who Are the Winners

Trump 2.0 is officially coming. The president-elect will attend the inauguration inside the Capitol on Monday and plans to sign more than 50 executive orders on the first day of his second presidency. The areas of focus could include energy, crypto, autonomous driving, AI, trade war, immigration, tax cuts, and more, which will undoubtedly shake the stock market. So, who could be the most significant beneficiaries?

Build a Great Wall Again

Trump prioritizes stopping illegal immigration from Mexico, committing to deport entire families if they are in the U.S. unlawfully, and possibly ending birthright citizenship.

By the time the sun sets tomorrow evening, the invasion of our borders will have come to a halt, and all illegal border trespassers will, in some form or another, be on their way back home, Trump said Sunday.

Investors may closely watch GEO Group (GEO) and CoreCivic (CXW), the two largest prison companies in the sector. Roughly two-thirds of ICE detainees have been held in facilities operated by private firms. GEO Group and CoreCivic have noted in their recent annual reports that U.S. Immigration and Customs Enforcement contracts account for 43% and 30% of their revenues, respectively.

Autonomous Vehicles

Self-driving technology will take center stage in Trump's second term. The transition team has discussed prioritizing the loosening of federal regulations for self-driving cars since early November, just after Trump won the election, per a report by Bloomberg. The close relationship between Trump and Musk, along with Tesla's ambition to mass-produce robotaxis by 2026, will likely boost the autonomous vehicle sector.

Key beneficiaries include Tesla (TSLA)  and Alphabet's Waymo (GOOGLE), which own the most advanced self-driving technologies. Software companies like Mobileye (MBLY), which offers self-driving systems, and ride-sharing platforms Uber and Lyft, which provide mass driving data, should also be noted. Additionally, companies like Luminar (LAZR) and Innoviz (INVZ), which produce high-vision Lidar for robotaxis, could benefit.

Cryptocurrency

Trump's support for cryptocurrency is clear, having advocated for Bitcoin to become a Strategic Reserve Asset and launching related meme coins that shook the industry. An initiative could be delivered as early as Monday, with Bitcoin attempting to reach $108,000, another historical high.

Beneficiaries include Coinbase (COIN) and Robinhood (HOOD), which will profit from increased crypto trading volume. MicroStrategy (MSTR), with its impressive 450,000 BTC holdings, and crypto mining companies like Marathon Digital Holdings (MARA) and Riot Blockchain (RIOT) could also benefit.

Artificial Intelligence

Trump's return will likely boost AI stocks, as deregulation promotes innovation, export, and potentially less retaliation from China.

It's speculated that Trump may allow the sale of high-end computing chips and computing power to China, albeit at higher prices to balance the fiscal budget. This could make Nvidia's position in the Chinese market more competitive compared to the Biden administration's export restrictions.

Winners in the semiconductor sector could include Nvidia (NVDA), AMD, and Broadcom (AVGO), with Micron (MU), Arm, and Qualcomm (QCOM) also benefiting from the increased demand for AI consumer electronics. Tech giants like Microsoft (MSFT) , Google, and Oracle (ORCL) could also see gains as they export more computing power.

Universal Tariff

Universal tariffs will be a primary focus of Trump's Day 1 announcements. The president-elect has insisted on minimum tariffs of 10% to 20% on all imported goods and 60% or higher on shipments from China, raising fears of globalization backlash and inflation.

However, it's reported that the economic team is considering gradually ramping up tariffs to boost negotiating leverage while avoiding a spike in inflation. If this approach is taken, Trump's trade war may be less harsh than expected, potentially reassuring global markets.

Stocks to watch include Pinduoduo (PDD), Alibaba (BABA), JD.com (JD), and other related Chinese stocks. Retailers like Walmart, Target, Costco, Dollar Tree, and Dollar General may also benefit if tariff threats are less severe.

Tax Cuts

Trump has campaigned on lowering the U.S. corporate income tax rate to 15%, though he has not recently reiterated this claim. In 2017, Trump requested a rate cut, but Congress only reduced it to 21%, down from the worldwide high of 35%. Achieving a rate below 21% may be challenging, but if successful, it could stimulate more cash flow and leverage, benefiting the market.

Energy

Energy stocks could benefit as Trump, an oil and gas advocate, removes restrictions and encourages more energy exports.

Expectations include lifting the LNG export permitting pause, issuing a new 5-year offshore leasing program, passing permitting reform, and repealing environmental standards on vehicle emissions. Trump believes deregulation can lower oil prices and reduce inflation.

Domestic energy stocks like ExxonMobil (XOM), Chevron (CVX), and Occidental Petroleum (OXY) could see gains. However, clean energy stocks, such as those in wind energy, may be negatively impacted.

Scarp EV Credits

Trump will scrap Biden's EV subsidy proposal, which offers up to $7,500 for car purchases. He will emphasize the importance of traditional automobiles and impose heavy tariffs on vehicles made outside the U.S. Ford (F), GM, and other traditional automakers will benefit, while Tesla may still thrive due to its mass production capabilities and less competitive EV market.