From railing against “fake news” on social media to the presence of crypto cheerleaders on his transition team, Donald Trump has made his views on certain technologies quite clear. As a result, it’s critical for investors to take a hard look at their portfolio as 2024 comes to a close — because the environment for previous tech darlings may get decidedly darker, and new areas of Silicon Valley may move into the spotlight.
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To be clear, predictions about future technology trends are always a bit of a guessing game. Previous megatrends such as 3D printing or a surge of wearable tech never really panned out, and investors who dove into startups headfirst were left with more than a few bruises. That said, there are several strategic technology trends worth investigating in 2025 given the recent headlines. More importantly, there are also a handful of tickers directly linked to these trends so investors can get a real read on the profit potential they hold.
The following five strategic technology trends for 2025 are among the hottest topics right now:
— Digital assets.
— Artificial intelligence.
— Space industry.
— Fracking and deepwater services.
— Digital communications.
Digital Assets
Powering through its all-time highs set back in 2021, Bitcoin is in the midst of a multiyear rally after rising more than 150% in the past 12 months. That’s because the environment in Washington and on Wall Street has been more receptive to digital assets as legitimate investments instead of just fads — and with the incoming Trump administration taking guidance from digital asset advocates like Elon Musk, the sky could be the limit for Bitcoin, Ether and other digital assets in 2025. Furthermore, many mainstream brokers and financial institutions now provide access to cryptocurrencies to provide better access to these markets than ever before.
Tickers to watch: Leading digital assets Bitcoin (BTC) and Ether (ETH), crypto-specific stocks like exchange leader Coinbase Global Inc. (ticker: COIN) and miner Marathon Digital Holdings Inc. (MARA), and leading ETFs such as iShares Bitcoin Trust ETF (IBIT) and Grayscale Bitcoin Trust ETF (GBTC).
Artificial Intelligence
Artificial intelligence has really become a hot topic over the past year or two in corporate boardrooms, with many existing tech companies thumping their chests over new features. These include Copilot for Microsoft Corp. (MSFT) software, or Google parent Alphabet Inc. (GOOG, GOOGL) deploying generative AI in its search results. However, there is still a lot of runway for AI firms out there pushing the frontiers of artificial intelligence in new and interesting ways. For instance, some in health care have launched AI-derived drugs that are now entering clinical trials, and smaller fintech firms are looking to use artificial intelligence to streamline traditional bank and insurance operations. These firms may be doing niche or targeted research, but sometimes small breakthroughs can provide tremendous opportunity when they unlock brand-new markets for investors.
Tickers to watch: Hardware specialist Nvidia Inc. (NVDA), AI lending startup Upstart Holdings Inc. (UPST), customer service “voice bot” provider SoundHound AI Inc. (SOUN), and broad artificial intelligence funds that include the iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) and Global X Artificial Intelligence & Technology ETF (AIQ).
[READ: 6 of the Best Companies to Invest in for 2025]
Space Industry
Elon Musk holds a prized place in Donald Trump’s inner circle, and while the billionaire has made much of his money from the runaway success of Tesla Inc. (TSLA), he is also well known for his privately held SpaceX rocket and satellite startup. And what with rumblings about federal government programs being gutted across the board, including the elimination of traditional agencies like the Department of Education, it’s hard to imagine that Washington is going to support public sector spending on space travel or satellite launches in the coming years. That creates a unique opportunity for the private, for-profit space industry that is coming into its own.
Tickers to watch: Publicly traded spacecraft firm Rocket Lab USA Inc. (RKLB), defense specialist Kratos Defense and Security Solutions Inc. (KTOS), satellite firm Iridium Communications Inc. (IRDM) and ETFs such as the ARK Space Exploration & Innovation ETF (ARKX).
Fracking and Deepwater Services
Admittedly, fossil fuels may not sound particularly high-tech. And with 2024 going down as the hottest year on record and scientists warning that the world has crossed the critical threshold of a 1.5 degrees Celsius temperature change versus pre-industrial levels, it would be nice to see movements to wean the global economy off hydrocarbons. But 21st-century energy extraction can be quite innovative, and the nomination of a fracking executive as President-elect Trump’s secretary of energy makes it all but certain the oil and gas industry is going to see a much more favorable environment for these kinds of businesses in the new year. The opportunity in the energy sector, then, may lie in specialized energy technology firms that service the more aggressive or complicated forms of energy extraction, such as oil sands, deepwater drilling, and other high-tech methods that weren’t feasible or profitable in previous environments.
Tickers to watch: Integrated oil giant Exxon Mobil Corp. (XOM), oilfield service leaders Baker Hughes Co. (BKR) and Schlumberger Ltd. (SLB), offshore drilling specialists like Valaris Ltd. (VAL) and Seadrill Ltd. (SDRL), and diversified oil-service ETFs such as VanEck Oil Services ETF (OIH).
Digital Communications
Similar to his disruption to energy sector policies, Trump will upend the communications landscape. That’s based on the nomination of Brendan Carr as head of the Federal Communications Commission, a man who wrote a key chapter in the Project 2025 blueprint for the White House that includes a goal of “reining in Big Tech.” That’s obviously bad for incumbents like Microsoft, Alphabet and Facebook parent Meta Platforms Inc. (META). But it also could provide a competitive opportunity for smaller digital communications firms that simply haven’t been able to compete with Silicon Valley behemoths in the past.
Tickers to watch: The obvious candidate is the president’s own Trump Media & Technology Group Corp. (DJT), but also less prominent firms in digital communications including Pinterest Inc. (PINS), local TV operator Tegna Inc. (TGNA) and news and sports media specialist Nexstar Media Group Inc. (NXST), along with ETFs such as the Global X Social Media ETF (SOCL) or the broader Communication Services Select Sector SPDR ETF Fund (XLC).
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Strategic Technology Trends in 2025 originally appeared on usnews.com
Update 11/22/24: This story was previously published at an earlier date and has been updated with new information.
