With Donald Trump elected as the 47th President of the U.S. and a Republican-controlled Congress, economic policies will favour tax cuts, deregulation, and pro-business growth. This environment is expected to drive investments in Artificial Intelligence (AI), financials, and energy, while cleantech faces challenges.

10 Key Predictions for the 2025 Market

  1. Stocks Will Rally: Corporate tax cuts and robust AI investments will drive 15% annual earnings growth.
  2. Stable Oil, Uncertain Inflation: U.S. oil production offsets growth; inflation remains a “wild card.”
  3. Interest Rates in Flux: Inflation will dictate Fed policy; markets anticipate gradual rate cuts.
  4. Upside Hinges on Inflation/Interest Rates: Lower inflation expands stock valuations; higher rates could limit gains.
  5. Large-Cap Stocks Outperform: Trump’s policies favor large-cap over small-cap stocks.
  6. Growth Over Value: Growth stocks, especially AI leaders, will dominate.
  7. “New-School” Growth Wins: Disruptive tech startups, like ARK Innovation (ARKK), may soar.
  8. Nuclear Energy Shines: Clean energy declines, while nuclear gains momentum under Trump.
  9. Financial Stocks Thrive: Deregulation boosts banks, credit providers, and lenders.
  10. Real Estate Faces Challenges: Higher rates risk suppressing real estate growth.

What AI Looks Like Under Trump

  • Deregulation: Trump may dismantle Biden-era AI safeguards, speeding innovation.
  • Tariffs on China: Potential 60% tariffs could disrupt GPU supply for AI.
  • Elon Musk’s Influence: Musk’s AI ventures (xAI, Tesla) could benefit from favorable regulations.

Top 7 AI Stocks to Buy for 2025

  1. Palantir (PLTR): Leader in AI-driven data analytics for governments and enterprises; AIP platform drives explosive growth.
  2. Tesla (TSLA): FSD advancements, supercomputers (Dojo, Colossus), and Musk’s influence position Tesla at AI’s forefront.
  3. Symbotic (SYM): AI-powered warehouse automation leader with massive backlog and rapid expansion.
  4. AppLovin (APP): AI-enhanced mobile marketing software driving revenue growth via AXON AI tools.
  5. monday.com (MNDY): Workflow automation software integrating AI for productivity gains.
  6. Duolingo (DUOL): Gamified AI-driven language-learning platform with a massive addressable market.
  7. Axon Enterprise (AXON): AI-enhanced law enforcement tech poised to thrive under increased police funding.
  • Focus on AI Growth Stocks: AI’s role in business and infrastructure will expand under Trump.
  • Watch for Deregulation: A hands-off approach accelerates innovation and adoption.
  • Position for Upside: Invest in companies with clear, realistic pathways to success – particularly in AI applications.

Conclusion

Focus on AI Growth Stocks: AI’s role in business and infrastructure will expand under Trump.

Watch for Deregulation: A hands-off approach accelerates innovation and adoption.

Position for Upside: Invest in companies with clear, realistic pathways to success – particularly in AI applications

This story was originally featured on Investorplace

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.