Ritika Janiya
When the recent U.S. election results pushed shares in tech giants like Nvidia, an AI chip maker, to record highs and boosted the price of bitcoin, investors seemed to cheer the possibility of another Trump administration for certain sectors in the tech world. Even electric vehicle (EV) company Tesla saw its stock surge by nearly 15%, a gain that would likely please its CEO, Elon Musk. Trump, after all, recently called Musk a “super genius.” But what does all this mean for people who use these companies’ products or for the future of big tech policies in the U.S.?
A Trump administration could mean major changes, especially in how the government regulates social media, artificial intelligence (AI), monopolies, and cryptocurrency. Some decisions may bring positive change, while others could lead to more questions about misinformation, competition, and control.
The Market’s Positive Response to Trump
The market has already responded favorably, with stock prices rising for companies like Nvidia and bitcoin. Such surges may signal investors’ confidence in the Trump administration’s potential to create favorable policies for these industries. However, the effects of these policies could extend beyond financial gains, affecting millions who rely on social media, EVs, and other tech products.
For example, Musk’s social media platform, X (formerly known as Twitter), could take on a new role in Trump’s administration. Musk has hinted that he might be tasked with recommending major reforms to make the government more efficient, which could give him substantial influence over regulatory agencies. If Trump’s administration reduces restrictions on tech firms, this could shape social media in ways that might allow misinformation to spread more freely.
Misinformation on Social Media: A Wild Ride?
According to independent tech analyst Benedict Evans, X has already become “a coordinating site for misinformation.” Many believe that by amplifying false information, the platform might have influenced the election. So, will Trump’s administration take action on misinformation? Evans thinks it’s unlikely, saying, “He likes misinformation.” If the Trump administration decides not to control content, social media platforms could become more turbulent and might see an increase in misinformation.
Many in the tech industry believe content moderation has gone too far and are calling for less censorship. But instead of removing false information, companies might only scale back its reach. This could mean users may see more content that’s not fully verified, which could lead to a more unregulated online space.
Managing the Tech Giants: Trump’s Dual Approach
As the 47th president, Trump would play a key role in guiding how the tech industry handles competition, privacy, and national security. The big five firms—Apple, Google, Meta, Microsoft, and Amazon—have incredible power, with their data and technology influencing people worldwide. While Trump may appreciate their value, his stance could shift based on his past actions.
During his first term, Trump was tough on tech giants. The Justice Department investigated Google for allegedly suppressing competition, and Trump publicly criticized Google’s CEO, Sundar Pichai, for supposedly not displaying enough positive news in search results. Trump even threatened legal action against Facebook’s CEO, Mark Zuckerberg, if he believed Facebook engaged in illegal activities.
This complex relationship suggests Trump could continue holding big tech firms accountable for monopoly practices. However, he has also shown admiration for tech leaders, especially Musk, suggesting a more complicated dynamic. Vanderbilt University law professor Rebecca Haw Allensworth says Trump has “a record of being tough on tech in terms of competition issues,” but he seems more supportive of Musk and other tech leaders today.
AI Development and National Security
AI has become an essential part of national security, and Trump recognizes the power U.S. companies like Google hold in this area. Recently, Trump said, “China is afraid of Google,” highlighting the international importance of these tech giants. Trump also questioned whether breaking up Google could harm its global standing. This statement suggests that while Trump may consider reigning in these firms, he might avoid drastic measures that would weaken the U.S. position globally.
Another important question is whether Trump will make it harder for China to access the high-powered chips needed for AI. Cutting China off from these resources could help the U.S. maintain its technological advantage. However, there are trade-offs to this strategy: keeping AI resources exclusive to the U.S. could limit innovation and discourage smaller tech firms.
Trump also raised questions about TikTok, the popular social media app owned by a Chinese company. While he previously wanted TikTok’s U.S. business sold, Trump recently stated he would “save TikTok” from being banned. This flip-flopping shows the difficult decisions a Trump administration might face when balancing national security and technological freedom.
EV Industry and Renewable Energy Policies
In the EV sector, Trump’s policies may lead to changes that could benefit Tesla, Musk’s company. Analyst Dan Ives of Wedbush noted that cutting incentives for EV manufacturers could harm the industry overall, but it might actually boost Tesla’s competitive position, as the company is already a market leader. If Trump’s administration adjusts the subsidies rather than removing them, this could help keep the EV market growing while giving Tesla an edge. Furthermore, Trump’s trade tariffs may limit cheaper Chinese EVs from entering the U.S. market, another potential win for Musk.
Cryptocurrency: A New Ally in the White House?
During his previous term, Trump was cautious about cryptocurrency, but his recent support for the industry could mean lighter regulations in the future. After receiving significant campaign donations from the crypto industry, Trump may be more open to favorable policies. Stocks in crypto-related companies, like Coinbase and MicroStrategy, jumped following the election, as investors anticipated a friendlier regulatory environment for digital assets.
The cryptocurrency community is hopeful that a Trump administration might cut back on restrictions, allowing the industry to grow more freely. Trump’s support could lead to new opportunities for cryptocurrency firms, but it might also bring new risks if regulations become too relaxed.
