Tech Titans Prosper in Trump’s First Year Back in Power

The first year of Donald Trump’s return to power saw tech titans prosper, driven largely by two emerging-technology fronts: artificial-intelligence (AI) infrastructure and renewable-energy/clean-tech. This led to outsized stock-price gains, record-size corporate spending, and a wave of policy incentives.

AI: The Engine of the ‘Magnificent Seven’ Surge

AI was a key driver of the ‘Magnificent Seven’ surge, with a 34-stock AI-basket total return of +50.8% in FY 2025. The U.S. AI-infrastructure budget announced was $500 billion for the ‘Stargate’ project, with the largest AI-infrastructure claim being ‘the largest AI infrastructure project in history.’

Renewable-Energy & Clean-Tech: The Parallel Growth Track

Renewable-energy and clean-tech also played a significant role, with Enphase Energy’s stock rising +10,700% from $1.85 to $212.07. The U.S. renewable-energy investment incentive was $30 billion, with a tax credit extension for solar and storage.

Combined Impact on the ‘First-Year-of-Return’ Market Performance

The combined impact of AI and renewable energy on the market performance was significant, with the S&P 500 total return being +16% and the Nasdaq-100 (tech-heavy) return being +29.6%. The Dow Jones Industrial Average was +21.8%, with the tech-sector (XLK) outperforming the S&P 500 by +38% vs. +16%.

Key Mechanisms

The key mechanisms driving this growth were policy incentives, capital allocation, and talent & supply-chain. The $500B AI budget, tax-credit extensions for solar/storage, and relaxed antitrust enforcement on big-tech M&A all contributed to the growth.

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