Trump's Return, Silicon Valley Rejoices: Nvidia Surpasses Apple in Market Cap, Tech Giants Await New Merger Wave

Trump's Return, Silicon Valley Rejoices: Nvidia Surpasses Apple in Market Cap, Tech Giants Await New Merger WaveNvidia Tops Market Cap, Fueled by AI BoomNvidia's stock price had already surged by 12% in November, and it has tripled since the beginning of 2024. The market's enthusiasm for Nvidia stems from its leading position in artificial intelligence

Trump's Return, Silicon Valley Rejoices: Nvidia Surpasses Apple in Market Cap, Tech Giants Await New Merger Wave

The dust has settled on the US presidential election, and tech giants are celebrating. With Trump's return, Nvidia's market cap soared past $3.6 trillion, surpassing Apple to become the world's most valuable company and leading a surge in the US tech index. The market widely expects Trump's victory to usher in a new wave of tech mergers, and Silicon Valley is finally seeing a light at the end of the tunnel after facing stringent regulations under the Biden administration.

Nvidia Tops Market Cap, Fueled by AI Boom

Following Trump's election win, Nvidia's stock price surged, ultimately hitting a new high at the closing bell on Thursday, reaching a market capitalization of $3.65 trillion. This not only surpassed Apple's $3.57 trillion historical closing market value record set on October 21st, but also significantly exceeded Microsoft's current market cap of nearly $3.16 trillion.

Nvidia's stock price had already surged by 12% in November, and it has tripled since the beginning of 2024. The market's enthusiasm for Nvidia stems from its leading position in artificial intelligence. As tech giants like Microsoft and Google race to expand their computing power, demand for Nvidia GPUs has exploded. Analysts predict Nvidia will deliver a stellar earnings report on November 20th, with quarterly revenue expected to grow over 80% to $32.9 billion.

Trump's Victory, Silicon Valley's Celebration

Trump's victory is seen as a win for the entire Silicon Valley tech community. AI leaders expressed their congratulations and expressed optimism for the future. Sam Altman, co-founder of OpenAI, even stated that the US is likely to witness the arrival of AGI during the next term.

During his first term, Trump had pledged to strengthen America's leadership in AI. Now, he has promised to revoke executive orders aimed at limiting AI's rapid development, ensuring the US continues to lead in developing more powerful and capable AI algorithms, and even considering federal resource support for training super-large AI models.

Analysts believe that under Trump's leadership, the US will launch significant AI initiatives, providing immense growth opportunities for tech companies like Microsoft, Amazon, and Google.

Loosening Regulations, Mergers on the Horizon

With Trump's return, Silicon Valley tech giants are finally escaping the stringent regulations imposed by the Biden administration. The dealmaking community widely expects Trump's second term to directly drive corporate mergers, private equity transactions, and venture capital exits, which have stalled in recent years due to stringent scrutiny from the Biden administration's antitrust regulators and high interest rates.

In recent years, companies like Microsoft, Amazon, and Google have pioneered a new model to avoid conventional antitrust scrutiny, targeting founders of promising AI startups and obtaining the necessary technology through talent acquisition or technology licensing. This practice significantly slowed down Silicon Valley's dealmaking pace, hindering growth opportunities for large companies.

Now, with Trump's victory, this situation is poised to change. Analysts speculate that Trump might instruct the Department of Justice to drop the antitrust lawsuit filed against Apple earlier this year. He might also oppose the governments attempt to break up Google, seeing Google as a bulwark against foreign tech ambitions.

Tech Giants, Who Are the Winners?

Who will emerge as winners in the tech landscape during Trump's second term? Currently, Tesla, Google, Apple, and Meta are all poised to benefit.

Tesla's stock price has surged by 18% following Trump's election win, exhibiting the best market performance. This is closely linked to Elon Musk's full support for Trump's re-election campaign. While Trump might revoke the incentives for electric vehicle production in the Inflation Reduction Act, Tesla has already reached scale and is now generating billions of dollars in profits, giving it a significant potential advantage over other US electric vehicle manufacturers.

Google has significantly increased by 6.5% over the past two trading days. While Trump has been critical of the search giant for years, he has not been willing to break it up. Moreover, regulations on autonomous vehicles might loosen, benefiting Google's self-driving subsidiary, Waymo.

Apple's stock price is still rising, although the gains are smaller over the past two days. Cook is known for his good relationship with Trump, allowing Apple to avoid many product tariffs.

Meta's stock price has not performed well during this period, linked to the feud between Zuckerberg and Trump.

Silicon Valley CEOs Send Well Wishes

Interestingly, before the election, Silicon Valley tech company CEOs had already started quietly reaching out to Trump. They understand that Trump's position is erratic and often transactional, so they need to establish direct connections with him for their companies to benefit.

During his first term, Trump criticized tech companies for manipulating platform reporting. During this period, Amazon had friction with Trump, who demanded the Pentagon cancel its cloud computing partnership with Amazon. However, Trump praised Apple CEO Tim Cook. Cook frequently called him to discuss business matters, which helped Apple avoid many product tariffs.

This time, savvy CEOs have started mimicking Cook. Meta CEO Mark Zuckerberg spoke with Trump following the attack on him in July; Google CEO Sundar Pichai told Trump that his campaign event at a McDonald's restaurant was one of the most viewed events on Google; Amazon CEO Andy Jassy reached out to introduce himself, while former CEO Jeff Bezos called to praise him for his resilience in the face of crises.

Following Trump's victory, these executives have been sending congratulatory messages, stating "We look forward to working with you and your administration!"

Conclusion

Trump's return brings new opportunities for Silicon Valley tech giants. Loosening regulations, impending mergers, and a continuing AI boom are all set to propel the tech industry into a new wave of development. How tech giants will navigate these challenges and seize these opportunities is something we will continue to watch.

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