We’re now only days away from inauguration. And as Donald Trump prepares to assume the presidency once again in 2025, investors are poised to navigate a landscape marked by significant economic policy shifts.
Trump’s administration is anticipated to prioritize tax cuts, deregulation, and trade tariffs, all of which could reshape market dynamics. Analysts expect that his proposed corporate tax reduction from 21% to 15% and increased defense spending will invigorate certain sectors. Among the obvious places investors are likely to focus more intently on are defense and energy, with a number of top companies in these sectors already seeing sharp gains following his election victory.
That said, I think there are a broader range of companies that may be worth a look in this second coming of Donald Trump to the White House. Let’s dive into three stocks that should have big upside in the next four years ahead.
Key Points About This Article:
- A Donald Trump election victory has many investors considering how to rebalance their portfolios to kick off 2025.
- Here are three top companies investors looking for a sustained “Trump bump” may want to consider.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Tesla (TSLA)
Following Donald Trump’s return to the presidency, Tesla’s (NASDAQ:TSLA) stock has experienced substantial gains. Indeed, this stock, now up roughly 60% since just prior to the election results being announced, continues to be among the highest-profile growth stocks investors are gravitating toward.
What’s truly incredible about this rise is that Tesla stock is now down nearly 20% from its 52-week high seen in mid-December following Trump’s election win. So, there’s some disagreement in the market around how highly this company should be valued, and plenty to discuss around momentum given that it’s soured of late.
That said, bulls continue to harp about the potential for growth driven by Tesla’s Full Self-Driving (FSD) technology and the anticipated rollout of its Robotaxi service. This enthusiasm is bolstered by Trump’s administration’s focus on deregulation, which may facilitate a more favorable environment for autonomous vehicles.
Additionally, Elon Musk’s close ties to Trump could lead to favorable policies that benefit Tesla. These benefits are often discussed in the media, but worth pointing out, as the EV sector continues to be one that benefits from tariffs (at least in terms of domestic supply and demand). Furthermore, the removal of tax credits could open up the market further for Tesla, as other competitors potentially step out of this space as their business models become unviable.
We’ll have to see if some of Tesla’s other endeavors, such as committing more than $1 billion to its Dojo supercomputer in 2024, pan out. But this is a company with a myriad of catalysts investors will be watching closely. And for those who believe this “Trump bump” can continue, this is a top name on most such lists right now.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) remains the leading high-performance chip maker in the market, currently holding roughly 98% of the data center GPU market. That’s a dominant monopoly-like position, and the market has clearly rewarded this stock for its dominance in this key high-growth space.
The company’s core hardware products, including its Blackwell GPUs, will continue to drive most of the growth story with Nvidia. And it’s true – the company’s hardware portfolio including much-needed GPUs, CPUS and networking gear is important. However, the company’s vertically-integrated model which includes development tools and other software necessary for developers is driving a great deal of the company’s growth as well.
Nvidia’s current multiple is reasonable at around 32-times forward earnings, considering analysts suggest the chip maker will put forward 38% annual earnings growth over the next three years.
Nvidia’s next-generation Blackwell architecture is poised to drive 2025 growth, with demand far outpacing supply. Blackwell GPUs, 2.2 times faster than Hopper chips, are crucial for training complex AI models, giving Nvidia strong pricing power. Major clients like Salesforce and ServiceNow are leveraging Nvidia’s AI Enterprise platform to create customized AI copilots, with billions of agents projected to roll out in the coming years, bolstering long-term growth potential.
For those thinking long-term about the AI revolution, Nvidia will remain a top chip stock to consider moving froward. This company could see a boost from a reduction of aggressive rhetoric from Trump around isolationism. If we see that play out, this is a stock that could really rally in 2025.
Chevron (CVX)
Over the past decade, Chevron (NYSE:CVX) capitalized on U.S. energy growth. The integrated energy giant has seen its share price fluctuate, but remain relatively stable over the past year. At the time of writing, Chevron is almost exactly flat over the past year.
So, why would now be a good time to consider this energy company? After all, if investors are all seeking the same thing (growth), wouldn’t other companies be better picks?
Perhaps. But Trump’s “drill, baby, drill” mantra should come into play this year and provide a boon for the sector for at least the next four years. And given Chevron’s focus on the Permian Basin with plans to expand to 6,600 locations by 2040, there’s a lot to like about this company’s upside in this sort of environment. Additionally, investors ought to consider Chevron’s $60 billion stock-funded deal to acquire Hess. This deal should provide access high-growth assets in Guyana, though ExxonMobil has challenged the merger, citing preexisting rights. Chevron remains confident but views the deal as non-essential, with ongoing projects set to boost production by 3% annually and free cash flow by 10% through 2027.
The company received FTC approval for its acquisition of Hess, which is expected to boost revenue and free cash flow (FCF) into the 2030s, further supporting dividend growth. Despite arbitration objections from ExxonMobil, both companies remain confident the deal will proceed. The uncertainty has pressured Chevron’s stock, trading at 7.2 times operating cash flow (below its five-year average of 8.3), offering an attractive opportunity for dividend-focused investors.
If Trump stands by what he says and he wants more oil production (and lower prices at the pump for consumer), Chevron could be an excellent pick right now.
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