Investing in Resilient Sectors Amid Trump's Second-Term Policy Shifts

The Trump administration's 2025 policy agenda has reshaped the U.S. economic landscape, prioritizing deregulation, national security, and industrial self-reliance. For investors, this has created a unique opportunity to capitalize on underappreciated sectors poised to benefit from energy sector revitalization, AI-driven national security initiatives, and defense-focused tariff policies. By analyzing the administration's strategic shifts, we can identify actionable investment opportunities in energy, technology, and defense that align with long-term resilience and growth.

Energy: A Renaissance of Fossil Fuels and Nuclear Innovation

The Trump administration's energy policy has centered on reversing climate-era regulations and accelerating domestic energy production. Deregulatory actions, including the elimination of 47 energy-related rules and the withdrawal of appliance conservation standards, have reduced compliance costs by an estimated $11 billion annually. Simultaneously, the administration has prioritized nuclear energy, allocating $800 million to advance small modular reactors (SMRs) and providing a $1 billion loan to restart a Pennsylvania nuclear plant.

Underappreciated opportunities lie in SMR developers such as Holtec Government Services and Tennessee Valley Authority, which have been selected for federal pilot programs to fast-track reactor deployment. These projects align with the administration's goal of reducing energy costs and enhancing grid reliability for AI-driven infrastructure. Additionally, companies like Everstar are leveraging AI to streamline nuclear licensing, cutting regulatory delays by 30-40%. For investors, these firms represent a bridge between traditional energy and next-generation innovation.

However, the energy sector faces headwinds from trade tensions and global economic uncertainty. While increased oil and gas production is expected, the administration's tariffs on Chinese goods and potential retaliatory measures could slow drilling projects. Investors should balance exposure to fossil fuel producers with long-term bets on nuclear and AI-integrated energy solutions.

Technology: AI for National Security and Deregulated Innovation

The Trump administration's AI strategy emphasizes national security applications and deregulated innovation. Executive Order 14179, issued in January 2025, removed barriers to U.S. AI dominance while promoting partnerships with defense and energy sectors. The administration has also prioritized AI infrastructure, expediting permitting for data centers and connecting them to the power grid.

Key beneficiaries include Nvidia and Palantir, which are deeply embedded in defense and AI ecosystems. Nvidia's AI hardware is critical for national security applications, while Palantir's enterprise solutions support energy efficiency and defense logistics according to research. Additionally, the administration's focus on AI for pediatric cancer research and cybersecurity underscores its commitment to leveraging technology for both public health and national defense.

A critical risk lies in the rollback of Biden-era AI regulations, which may slow progress on ethical AI frameworks. However, the administration's emphasis on export restrictions to China and preemptive federal oversight of state AI laws suggests a strategic focus on maintaining U.S. leadership. Investors should prioritize firms with dual-use capabilities-those serving both commercial and defense markets-to hedge against regulatory volatility.

Defense: Tariffs, Copper, and Strategic Supply Chains

The Trump administration's defense policy has centered on reshoring critical industries and leveraging tariffs to protect domestic supply chains. A 50% tariff on semifinished copper products and a 15-30% tariff on refined copper products, effective by 2027, have created a price premium for U.S. copper producers. This has spurred a surge in copper imports, with shipments rising from 58,000 tons in February 2025 to 123,000 tons in March 2025.

While no specific U.S. copper producers were identified in initial searches, the administration's focus on critical minerals has indirectly benefited Alcoa, a major aluminum producer, through deregulation of mining and tariff-driven demand. Defense contractors are also leveraging copper tariffs to advance AI and energy transition projects, as copper is essential for data centers, power transmission, and electrified infrastructure.

The administration's $1.5 trillion defense budget proposal has further boosted demand for materials like copper, with the Department of Defense recognizing copper as the second most-used material in its operations. However, the U.S. lacks sufficient domestic smelting capacity, creating a reliance on global supply chains. Investors should consider firms involved in copper refining partnerships or those integrating AI to optimize supply chain logistics.

Conclusion: Strategic Resilience in a Shifting Landscape

Trump's 2025 policies have created a bifurcated economic environment: one where deregulation and protectionism drive short-term gains in energy and defense, while AI and critical minerals shape long-term resilience. Underappreciated opportunities exist in SMR developers, AI-driven defense contractors, and copper producers navigating tariff-driven demand.

For investors, the key is to balance exposure to high-growth sectors with hedging against trade war risks and supply chain bottlenecks. By aligning with companies at the intersection of policy priorities-such as Holtec, Nvidia, and Alcoa-investors can position themselves to capitalize on the administration's vision of a self-reliant, technologically advanced, and energy-secure United States.