A tech-first approach could create a ‘rising tide lifts all boats’ situation for AI stocks
Musk vs. Trump: the feud that just won’t quit…
This past weekend, the world’s richest man did something that would make even the most seasoned political operatives do a double take: he cemented his split with the president of the United States by announcing his own political party.
That’s right. Elon Musk, in true Muskian fashion, threw digital gasoline on the fire and introduced ‘The America Party’ via X.
Trump called it “ridiculous.” Most media outlets responded with confusion, trying to decipher whether this was political strategy or more billionaire performance art. And if we’re being honest, this whole situation does feel more like a beef between two reality TV stars.
But we also don’t think this is a troll or a distraction.
Instead, this could be a monumental moment for American politics.
Why Musk’s New Party Could Actually Work (and Why It Matters)
For now, let’s assume Musk is serious about creating another political party.
If history and current sentiment are any indication, it just might work…
Not because it has the slickest branding or an organized ground game. But because it’s tapping into something deeply real: political exhaustion.
Let’s face it. Since the 2008 financial crisis, both major parties have been bending toward extremism. Leaders of the Democratic party are leaning into the idea of democratic socialism, while Republicans are riding a hardline conservative tidal wave.
Most Americans, meanwhile, are stuck in the middle, shouting into the void: “Can we just have some semblance of normality, please?”
Gallup data shows that back in 1990, 60% of Americans were satisfied with the way democracy worked. But that number has cratered to 30% today.
Though, we’re sure you didn’t need Gallup to tell you that.
Just think of any recent Thanksgiving dinner with the family. You’ve got a conspiracy-obsessed uncle on one side and a defund-everything cousin on the other. And the rest of us? We’re sipping wine, exchanging glances that scream, “Dear God, let this be over.”
We believe The America Party is a manifestation of that eye-roll.
What ‘The America Party’ Might Stand For
Of course, there aren’t yet many details about the proposed party’s foundational platform.
But from what we can gather, it’s only radical in its centrism. It’s assumed to be the party of: “Lower my taxes, give me clean air, and stop screaming at me.”
Musk is seemingly giving Americans a new outlet. You want fiscal responsibility? Check. Smart immigration reform? Check. Technology-forward governance, deregulation and innovation? Double check.
Now, historically, third parties have taken short walks to the graveyard. There have only been a few notable – and short-lived – success stories.
Teddy Roosevelt gave it a shot with the Bull Moose Party in 1912. He even won 27% of the vote. But he still lost the race by a landslide. In 1992, Ross Perot snagged nearly 20% of the popular vote – yet nothing from the Electoral College.
The history of third parties in this country is littered with failure after failure. Over the past two centuries, the American political system has been designed for two parties.
But that era may be coming to an end…
Musk Is More Than Some Billionaire
The political dysfunction in our nation has hit ‘critical mass.’
Heightened polarization has snapped the rubber band. People aren’t just frustrated; they’re ready to defect.
Combine that with the fact that Musk isn’t some fringe figure. He’s the richest man on Earth, with more social media followers than the pope and a bigger reach than most news outlets. With that guy starting a party at a time when people are so frustrated with politics, Americans are likely to listen.
After all, his pinned post announcing ‘The America Party’ – decorated with three American flag emojis and zero policy details – racked up over 50 million views, 160,000 likes, and 16,000 reposts in under 24 hours. That’s not a political party. That’s a digital army.
Now, we’re not saying Musk’s party will win the presidency in 2028.
But if this new faction gains enough traction to win just a few Senate or House seats – or even peel off a meaningful chunk of votes – it could become a political kingmaker, forcing the other two parties to pivot. That alone would be transformational…
Which brings us to the market…
What Musk’s Political Play Could Mean for AI Stocks
While the media debates whether Musk is a madman or a messiah, we’re looking at what this means for stocks. And we see one word in flashing lights: AI.
A core tenet of The America Party is a tech-first approach to governance. This is Musk’s party, after all, and he is the CEO of multiple multi-billion-dollar tech companies. Tech is in this proposed party’s DNA.
And a tech-first approach to governance = AI everywhere. Think automated federal desk jobs, humanoid robots in the police and military, satellite fleets to improve weather prediction and battlefield intel.
It might sound dystopian; and we won’t dispute that. But it would also allow for unprecedented government efficiency.
Musk’s vision of a silicon-powered Washington would mean less bureaucratic bloat and more machine-optimized outcomes. In economic terms, fewer costs + better outcomes = a fiscal supercycle.
And who benefits from that?
Let’s start with the obvious: Tesla (TSLA). Imagine Optimus robots deployed as subsidized labor units for police forces, disaster relief, or public works. Picture robotaxi fleets serving as quasi-public transport and government agencies running Starlink terminals for rural connectivity and defense communications.
But it’s definitely not the only firm that would benefit.
From Politics to Portfolios: Musk’s Vision Might Reshape Both
The America Party’s tech-first approach could create a “rising tide lifts all boats” situation for AI stocks.
Consider Palantir (PLTR). AI-powered data platforms for federal agencies would be its dream-come-true.
Or how about the infrastructure kings: Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO)? If Musk gets even a sliver of his AI-for-government dream through Congress – or forces the other two parties to start thinking more about this stuff – the computing demand would become monstrous. And these names should benefit enormously.
Let’s not forget Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta (META): the cloud giants that will host and manage all this AI infrastructure. They could be huge winners in an effort to modernize government with AI.
Software vendors like ServiceNow (NOW) and Salesforce (CRM) could overhaul the entire federal workflow stack. Even companies like Axon (AXON), which supplies tech to law enforcement, could benefit in a Muskified modernization push.
From what we can tell, the ripple effects here would be enormous.
If Musk succeeds even modestly in making ‘The America Party’ a viable coalition, it could serve as a massive political tailwind for AI investment thanks to government contracts, regulatory support, and favorable policy frameworks.
Yes, it’s a long shot. But in markets, long shots with asymmetric upside are what you want. Betting on Musk to create political momentum that turbocharges the AI economy might be one of the most fascinating tail-risk trades of this cycle.
So, while the world shrugs and scrolls past another Musk-related headline, we’re watching with keen eyes…
Because if it gains steam, it might not just change politics. It could ignite a new bull market for AI.
And this is by far our favorite way to play a new Musk-driven boom in AI stocks.
