Trump’s Tariff Policies: Impact on Growth Stocks and AI Leaders, According to Wedbush’s Dan Ives

Wedbush analyst Dan Ives warns that President Donald Trump’s latest tariff policies could pose significant short-term challenges for growth stocks, yet remains optimistic about the long-term strength of AI-driven technology investments.

Tariffs on Mexico, Canada, and China: A Major Concern for Growth Investors

With the implementation of Trump’s tariffs on Mexico and Canada already underway and China tariffs expected to follow, global investors are facing heightened uncertainty, particularly in high-growth tech sectors, according to Wedbush’s latest analysis.

China Crackdown and AI Risks: Nvidia in the Crosshairs

A key concern highlighted by Ives is Trump’s escalating trade policies targeting China, particularly regarding semiconductor exports. The emergence of DeepSeek, a Chinese AI startup suspected of utilizing Nvidia’s advanced GPUs despite export bans, has intensified scrutiny on the industry.

“There is one chip in the world fueling the AI Revolution, and it’s Nvidia (NASDAQ: NVDA),” Ives noted, warning that stricter export controls on China could further pressure growth stocks.

AI Boom Still on Track Despite Market Uncertainty

Despite these challenges, Wedbush remains bullish on the AI sector, emphasizing that the industry is experiencing one of the largest tech transformations since the Industrial Revolution.

“We are in the midst of the biggest tech transformation trade since the Industrial Revolution, with AI expected to drive $2 trillion in capital expenditures over the next three years,” the firm stated.

While tariffs may introduce volatility in certain sectors, Ives views the strategy as part of a high-stakes negotiation tactic aimed at reshaping trade relationships with China, Mexico, and Canada.

Top AI Stocks to Watch Amid Tariff Uncertainty

Wedbush continues to recommend leading AI and tech stocks despite the potential for short-term market swings. Ives highlights Nvidia, Microsoft, Alphabet (Google), Amazon, Palantir, Salesforce, Tesla, and Apple as must-own stocks for long-term investors.

“This will be an uncomfortable time for growth investors… but ultimately, this is not the time to exit the AI trade. Instead, investors should hold onto these tech AI winners.”

What’s Next for Tech Investors?

As the global trade landscape shifts, AI and high-growth tech stocks will likely experience volatility in response to new tariffs and policy shifts. However, analysts remain confident that AI-driven innovation will continue to propel the sector forward, making it a key area for long-term investment.

(Sources: investing.com, reuters.com)