Tech stocks, like much of the U.S. stock market, have charged higher in the week since Donald Trump secured a second term in the White House, boosted by expectations for business-friendly tax policies and gentler regulation.

The Roundhill Magnificant Seven ETF (MAGS)—which tracks the stocks of artificial intelligence (AI) heavyweights Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), and Tesla (TSLA)—has climbed nearly 7% since Election Day. Tesla stock, up more than 25% in the last week, has had an outsized impact on those gains. Still, most of the group has outperformed the broader market, with the equal-weight S&P 500 up less than 3% over the same period.

AI was hardly a blip on Wall Street's radar last time Donald Trump was president. His incoming administration could have a long-lasting impact on how the nascent technology is developed and who benefits.

What Has Trump Said About AI?

Artificial intelligence got very little airtime during Trump's campaign rallies. Trump has said very little about whether he would encourage investment in AI, regulate the nascent technology, or advance its use in the government.

His official platform stated: "We will repeal Joe Biden's dangerous Executive Order that hinders AI Innovation, and imposes Radical Leftwing ideas on the development of this technology. In its place, Republicans support AI Development rooted in Free Speech and Human Flourishing."

Biden's October 2023 executive order on AI laid out the guiding principles of his administration's AI initiatives, one of which was that they "must be consistent with my Administration's dedication to advancing equity and civil rights."

The order also created the U.S. Artificial Intelligence Safety Institute, an organization meant to evaluate the safety and security of advanced AI models. Dozens of tech companies last month urged Congressional leaders to enact legislation that would formalize and fund the institute before the end of the year.

What Trump's Supporters Think of AI

Trump enters the White House with the backing of several prominent tech investors. Among them is venture capitalist Marc Andreessen, who in December 2023 called regulation of AI "the foundation of a new totalitarianism." In a "Techno-Optimist Manifesto" published in October 2023, Andreessen railed against "trust and safety" and "tech ethics" as two prongs of a "mass demoralization campaign" that he said threatened to stifle economic growth and lead to societal decline.

But even closer to Trump is Elon Musk, who has taken a more measured stance on AI regulation. He supported a California state bill that, had it not been vetoed by Gov. Gavin Newsom, would have required large language models to undergo safety testing.

Could Trump Usher in an AI Boom?

Regardless of whether Trump prioritizes innovation or safety, his administration is widely expected to encourage investment as part of its pro-growth agenda. 

The Biden Administration appears to have had a constructive relationship with industry working on AI regulation, but Big Tech is likely to have an even warmer relationship and more sway with a Trump White House. 

Wedbush analysts expect Trump's administration to launch "significant AI initiatives" within the government and military. Washington's investment in AI could benefit cloud computing giants Microsoft, Alphabet's Google, and Amazon, as well as defense contractor Palantir (PLTR), they wrote.

Palo Alto Networks (PANW) Chief Executive Officer (CEO) Nikesh Arora told CNBC shortly after the election that it was "more than likely" that a Trump administration would accelerate investment in AI.