Here are the takeaways from today’s Morning Brief. Sign up to receive the following in your inbox each morning:
Donald Trump’s return to the White House has us wondering about the world’s most beloved stock, Nvidia (NVDA).
Will President Trump’s inauguration be good or bad for the AI market? Has he ever asked CEO Jensen Huang to do any work on X? Does Mr. Jensen have any feelings about Mr. Trump, and perhaps poses a significant risk to the company’s stock price? Do you have sex?
All of this is important because, as I mentioned earlier, NVIDIA has been a market since before it was included in the former chimney index known as the Dow Jones Industrial Average (^DJI).
Who really knows the simple answers to all these pressing questions? We just don’t find them.
An advanced search of Trump’s X account doesn’t turn up a single post about Jensen or Nvidia. Despite a thorough review of interviews with Jensen from his time as president, there isn’t much for Trump to look forward to once he returns to the Oval Office.
“I’m optimistic about the outcome, but overall I prefer a more liberal government. I have confidence in the resilience of the system. We will find a breakthrough and find a way forward.” Mr. Huang said. VentureBeat article from November 2016 after Trump’s first White House victory.
Huang is a close friend of Tesla (TSLA) CEO and Trump supporter Elon Musk, but it’s unclear how that will affect Nvidia’s fortunes over the next four years.
Talk to your investors. Early vibes suggest that Nvidia should do well, as the factors driving its business are too strong to ignore.
“It’s hard to draw a straight line between AI and Nvidia and Trump,” EMJ Capital founder Eric Jackson said on Yahoo Finance’s Opening Bid podcast (watch video above, listen below). “I think there are some interesting ways that AI is permeating every nook and cranny of technology. But in general, obviously, Trump is very pro-growth, he’s got low taxes, and that includes AI. It’s going to take the whole technology by storm.”
Jackson believes Nvidia could see increased demand from the Bitcoin mining industry as President Trump may further open up the digital asset market.
Nvidia could also benefit from less regulation for the energy industry, Jackson reasoned, allowing hyperscalers to respond more quickly to building AI infrastructure.
Jackson said one risk to be aware of is if there were a trade war with China due to tariffs. Nvidia not only sells chips in China, but also has significant product development talent in the country. It is also important to keep in mind how this trade war will affect relations between China and Taiwan, a major semiconductor producer.
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