MW This company soared as a 'Trump trade.' Now it's set for an AI boost, say analysts.

By James Rogers

Phunware, one of a number of so-called Trump trades, is ramping up its efforts to harness AI

Mobile-advertising software company Phunware Inc., which was thrust into the spotlight during the U.S. presidential election as a so-called Trump trade, is set to reap the benefits of its push into artificial intelligence, analysts say.

Phunware $(PHUN)$, which developed and launched a mobile app for President Donald Trump's failed re-election campaign in 2020, saw its stock soar last year on his successful bid to return to the White House.

In a note released Monday, Ascendiant Capital Markets analyst Edward Woo wrote that Phunware's pivot to "new AI growth areas presents strong growth potential." Ascendiant maintained its buy rating for Phunware but lowered its price target to $12 from $13.

From the archives (December 2024): Phunware - which soared as a 'Trump trade' - preps AI-driven canvassing tool

"Phunware's expanded focus includes developing and delivering AI-driven platforms that make real time, on-demand coordination and engagement accessible to organizations of all sizes, allowing them to scale their efforts and achieve targeted outcomes efficiently," Woo wrote.

In addition to its work in the political realm, Phunware develops mobile-app technology for industries such as hospitality, healthcare and sports and entertainment.

When Phunware reported its fourth-quarter results last month, interim CEO Stephen Chen said the company expects to launch an AI personal concierge for the hospitality industry and a new AI-driven software-development platform in mid-2025.

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Phunware is also working on new AI-driven canvassing technology that it says will give political campaigns greater insight into voter sentiment. Last year Phunware announced a deal to acquire a controlling stake in MyCanvass, a technology company providing voter- and advocacy-engagement tools. MyCanvass is a subsidiary of Campaign Nucleus, a software-as-a-service (SaaS) platform founded by Brad Parscale, the digital director of Trump's 2016 campaign and the manager of his 2020 campaign.

Woo sees large market potential for Phunware. The demand for its services continues to grow, he wrote, fueled by its participation in the "rapidly growing and evolving markets" of AI, mobile cloud software, media, big data and cryptonetworking.

In a note released earlier this month, Taglich Brothers also pointed to the opportunities that lie ahead for the company.

"Phunware has significant long-term growth potential as it transitions operations to the development and deployment of its next-generation generative AI SaaS platform," Taglich Brothers analyst Howard Halpern wrote. "This offering will be designed to democratize mobile app creation by allowing companies to create, build and deploy custom mobile apps for consumer applications and internal employee productivity."

Related: Here's how Tesla, 'DJT' and other Trump trades have fared since the inauguration

Generative AI, which has emerged as a key technology trend in recent years, can be trained to harness huge quantities of data and generate tailored content.

Taglich Brothers maintained its speculative buy rating for Phunware but reduced its price target to $5.75 from $12. This, it said, was primarily due to a reduction in sector valuation and Taglich Brothers' initial 2026 sales per share forecast for Phunware.

Phunware shares are down 51.7% in 2025, outpacing the 37.9% decline of Trump Media & Technology Group Corp. $(DJT)$, which operates the president's Truth Social social-media platform and is seen as another notable Trump trade.

Shares of electric-vehicle giant Tesla Inc. $(TSLA)$, another Trump trade and one that has become something of a political football due to CEO Elon Musk's prominent role in the controversial entity known as the Department of Government Efficiency, are down 44.3% in 2025.

The S&P 500 SPX has fallen 12.8% in the same period.

-James Rogers

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April 21, 2025 12:21 ET (16:21 GMT)

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