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Wedbush: If a "red wave" emerges, US tech giants and the AI industry will be strongly boosted
AInvestWednesday, Nov 6, 2024 8:40 am ET
1min read
TSLA --

Wedbush, an investment bank, said the Trump victory and a "red wave" that could see Republicans win both houses of Congress should give tech stocks a "very strong bullish market reaction" and benefit artificial intelligence. The Wedbush analyst said in a client note: "We expect a very strong bullish reaction in the market following the Trump victory, with large tech companies and Tesla (TSLA) in the spotlight. We expect Trump to immediately focus on the AI issues of the large tech companies, and the departure of Lina Khan from the FTC will be a plus for the large tech companies, and the Trump bet for Musk is a "home run" for Tesla." The analyst emphasized that the Trump victory is the biggest positive for Tesla and Musk. The analyst noted that if the U.S. government reduces tax incentives for electric vehicles, Tesla will have a competitive advantage over other automakers, "a Trump victory could add 40-50 dollars to Tesla's stock price." The analyst added that the Trump administration could launch "major AI initiatives" that would benefit large tech companies such as Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL) and other tech companies. The analyst also said that these "major AI initiatives" could come from agencies such as the U.S. Department of Defense, which would drive companies such as Palantir (PLTR).

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