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Technology companies represent a major pillar of U.S. growth: giants in cloud computing, semiconductors, and artificial intelligence, they are both engines of innovation and powerful growth drivers. Among them, Nvidia, Oracle, and Palantir exemplify different models:
Nvidia, leader in GPUs;
Oracle, a long-standing player in software and cloud;
Palantir, specialized in data analytics and AI for governments and enterprises.
These companies are particularly sensitive to macroeconomic cycles, monetary policies, and major political shocks, such as a prolonged federal shutdown, which can weaken their valuation despite very strong theoretical growth prospects.
Here are the main levers and risks that tech stocks face in the context of the U.S. government shutdown:
The prolonged shutdown (43 days according to some sources) complicates the reading of macroeconomic data: key indicators (employment, inflation, spending) are delayed or absent, making Federal Reserve decisions less clear. This uncertainty weighs on tech investors, who fear a slowdown in demand, higher capital costs, or a change in monetary policy.
AI-related companies are highly capital-intensive: they invest heavily in data centers, hardware, and chips. In the context of a shutdown, growth fragility and lack of visibility justify a heightened “risk aversion.” Oracle has been criticized: according to some analysts, its cloud margins are lower than expected, and its AI-related revenues may not be as profitable as some anticipate. The shutdown exacerbates these issues: investors fear that government orders or partnerships could be frozen or delayed by budgetary blockages.
The sector is particularly sensitive to negative news: in this phase, disappointing announcements, slower AI spending, or increased CapEx caution can trigger sell-offs. Some analysts speak of a “revaluation risk”: tech company multiples are high, and a macro or political shock could lead to adjustments.
A resolution of the shutdown could restore some confidence: according to some sources, lifting political uncertainty would revive tech investment. Private investment in AI continues to be very strong. Analysts consider the technology an essential long-term infrastructure, even if the path is turbulent. Certain tech companies (AI / data center) could benefit from a rebound if they are well-positioned, with strong cloud contracts and structural margins.
These companies are at the heart of digital transformation. If AI continues to grow, their development potential remains very high. Even with a temporary slowdown, their positions in infrastructure (chips, data centers) could secure solid long-term revenues.
If the shutdown ends or investors regain macro visibility, these stocks could rebound strongly.Current valuations may offer an attractive entry point for long-term investors.
Some of these companies (like Palantir) have multi-year or government-linked contracts, which can partially protect them against budgetary blockages. Their size, cash-flow potential, and leadership positions provide some leeway in the face of volatility.
Rather than betting on a single company, a diversified portfolio of tech stocks (AI, cloud, data) allows investors to capture growth while mitigating regulatory or macro risks. This strategy is particularly relevant in times of uncertainty: investors can take advantage of a “dip” to build or strengthen a position.
The decline in technology stocks amid the shutdown does not necessarily signal a lasting collapse, but rather a recalibration of risk. For investors ready to navigate uncertainty, these companies offer a potentially attractive entry point if you believe in the long-term vision of AI and cloud computing.
Knowledge is power.
