Investing.com -- In a recent market commentary, investment expert Louis Navellier shared his views on how a Trump victory in the upcoming U.S. Presidential elections could impact stocks, particularly those linked to cloud computing and AI infrastructure.
During his podcast on Monday, Navellier flagged that several key stocks could see gains if Trump were to return to the White House, largely due to his administration’s expected focus on boosting U.S. electricity generation to support the growing demand from power-hungry cloud computing centers.
Navellier outlined Trump's ambitious plan to double electricity generation in the U.S., with a strong emphasis on utilizing cheap natural gas. The rationale behind this initiative is to power the increasing number of cloud computing centers, which are essential for the growth of AI technologies.
Cloud computing and AI require immense computational power, which in turn demands significant energy resources. As such, Trump’s strategy to harness the vast reserves of inexpensive natural gas—often flared due to oversupply—could be a pivotal move for several industries.
This potential surge in electricity generation would directly benefit companies involved in the infrastructure that supports cloud computing. Navellier identified several stocks that are well-positioned to capitalize on these developments.
Crowdstrike Holdings, a leader in the cybersecurity space, could see increased demand as AI technologies continue to expand and the need for secure cloud environments grows.
The integration of AI into more business processes will likely lead to heightened security concerns, driving demand for Crowdstrike’s services.
Eaton (NYSE:ETN), a critical player in power management technologies, is another stock that could thrive. As data centers expand to meet the needs of AI, the importance of efficient power management will become increasingly crucial, positioning Eaton as a key beneficiary.
Navellier also pointed to Emcor, a provider of electrical and mechanical construction services, as a company poised for growth. The expansion of cloud computing infrastructure will require extensive construction and electrical services, putting Emcor in a favorable position to benefit from these trends.
Nutanix (NASDAQ:NTNX), known for its enterprise cloud software, is expected to capitalize on the growth in cloud computing as businesses continue to seek out more efficient and scalable cloud solutions. Nutanix’s ability to offer versatile and robust cloud infrastructure could make it a standout performer in a Trump-favored economic environment.
Another stock mentioned by Navellier is Parsons (NYSE:PSN), which specializes in critical infrastructure and technology-driven solutions. With an increased focus on expanding AI and cloud infrastructure, Parsons could see a surge in demand for its services, particularly in government and large-scale private sector projects.
Quanta Services (NYSE:PWR), with its focus on electric power and infrastructure projects, stands to gain from the anticipated expansion in electricity generation and distribution. As the demand for energy infrastructure grows, Quanta’s services will be in higher demand, leading to potential stock appreciation.
Navellier also highlighted Super Micro Computer (NASDAQ:SMCI), a provider of high-performance server technology. With the growth of AI and cloud computing, the need for advanced server technology will increase, making Super Micro Computer a key player in this space.
Finally, Vertiv Holdings (NYSE:VRT), which specializes in critical digital infrastructure and continuity solutions, could benefit from the expansion of data centers. As the backbone of cloud computing infrastructure, Vertiv’s products and services will be essential to support the increasing demand driven by AI.
Beyond the specific stocks mentioned, Navellier also touched on the broader implications for the energy sector, particularly crude oil.
With crude oil prices up 7% this year due to geopolitical tensions and supply disruptions, Trump’s potential policies could further drive demand for natural gas, influencing the energy sector as a whole.
The intersection of energy policy and technological infrastructure could create a unique investment environment that favors companies with strong positions in both fields.