10 Stocks that Will Benefit from DOGE Cost Cutting

According to government watchdogs, the U.S. has lost almost $2.4 trillion in simple payment errors over the last two decades. Improper payments, which refer to payments that are made incorrectly by the government, cost the U.S. $247 billion in 2022, according to the Government Accountability Office. The GAO’s audits found a laundry list of agregious wasteful spending by the Biden government.

While there isn’t officially a “Department of Government Efficiency (DOGE)” led by Elon Musk, his current actions to find wasteful spending in the US government is bound to create benefits for US taxpayers and opportunities for some companies and the value of their stocks.

DOGE is just getting started with their government cost reduction efforts, but they say they’ve already captured $65 billion so far.

The excessive spending of the Biden Administration created massive deficits pushing toward $36 trillion at this point. Musk’s mission includes terminating DEI regulations and spending. The outcome of better spending means some industries, sectors and companies are bound to benefit, many of them US companies.

The connection between DOGE cost-cutting and companies listed on the stock exchange (the best stocks to buy now and best technology stocks to buy now) is complex. However, you might see that companies that aid in government efficiencies might be foremost to benefit. Some of them such as Tesla, SpaceX, Palantir will benefit as US defense department will have the funds to operate. Companies such as Open AI, Microsoft, Google, Nvidia, IBM, CrowdStrike, SAP and Oracle as AI technology companies will be looked to create high-level efficiencies in operations.

The Stargate Project specifically is a monumental initiative aiming to invest up to $500 billion over the next four years to bolster artificial intelligence (AI) infrastructure in the United States. There is a number of great stocks to buy, listed below, which benefit from DOGE cost-reduction audits and cuts. Many of them are great technology stocks listed on the NASDAQ.

Industries & Sectors That Could Benefit from DOGE Cost Cutting:

1. Private Space & Defense Contractors – If government inefficiencies in traditional defense and space programs are reduced, leaner private sector companies like SpaceX, Palantir, Anduril, and smaller defense tech startups could secure more contracts.
2. AI & Automation – Government streamlining would likely increase demand for AI-driven efficiency solutions in bureaucracy, logistics, and decision-making, benefiting companies like OpenAI (40% stake in Stargate), Palantir, IBM Watson, and Google DeepMind.
3. Cloud Computing & Cybersecurity – Increased focus on digital transformation could boost demand for cloud infrastructure and security solutions, benefiting Amazon AWS, Microsoft Azure, and CrowdStrike.
4. Government Contracting & Procurement Efficiency – Companies that specialize in AI-driven procurement optimization, like Coupa Software, SAP Ariba, and Oracle, could gain contracts to improve purchasing efficiency.
5. Electric Vehicles & Infrastructure – If cost-cutting efforts target fuel inefficiencies, the EV sector (Tesla, Rivian, ChargePoint, and government fleet electrification companies) might benefit.
6. Construction & Infrastructure – If wasteful infrastructure spending is cut in favor of private-public efficiency models, companies specializing in modular construction (Katerra) and smart infrastructure (Siemens, Honeywell, and Trimble) could gain an edge.
7. Privatized or Hybridized Public Services – If certain government functions are outsourced or restructured, logistics, transportation, and healthcare tech companies might step in, benefiting firms like FedEx (postal alternatives), Uber (transport), and telehealth startups.
8. Renewable Energy & Grid Optimization – If outdated energy programs are cut, investment might flow toward nuclear startups (Oklo, NuScale), battery tech (QuantumScape, Tesla Energy), and decentralized power solutions.
9. Data Analytics & Accountability Tech – Companies providing spending transparency and accountability tools (like ClearGov, Tyler Technologies, and Workday for government HR optimization) could be in demand.
10. Education & Workforce Training – If inefficient government education subsidies are reallocated to performance-based funding, EdTech companies like Coursera, Udacity, and Khan Academy could gain traction.

Potential Impact on Specific Companies:

Some companies and their stocks may be able to deliver on new technology and services, often using AI (AI stocks) are likely to be investible. Involvement in the Stargate project and other US government operations is a key way for them to upscale to make their own investments worthwhile.

• Tesla (Efficient US-based auto production, EV fleet conversion & energy efficiency solutions)
• SpaceX (streamlined space contracts over legacy aerospace firms)
• Palantir (AI-driven efficiency & fraud detection in government spending)
• Amazon AWS & Microsoft Azure (government cloud migration & IT modernization)
• Siemens & Honeywell (smart infrastructure & energy efficiency in public buildings)
• FedEx & UPS (if USPS operations get trimmed or restructured)
• Oracle, SAP, Workday (ERP solutions for government digital transformation)
• Anduril, Lockheed Martin, Raytheon (leaner, cost-effective defense solutions)

The main beneficiaries would be companies that help reduce inefficiencies, automate processes, and improve ROI on government spending.

Government efficiencies stop dishonest relationships, ends rewards for incompetence, ensures money is spent with American companies. They encourage investing in the US due to spending going to legitimate pro-US investors who are getting access to government supply contracts.

Lower taxes translates to benefits for all US companies.

Hopefully this large list of stocks to buy whose companies will benefit from DOGE cost cutting.  They’re all great stocks listed on the S&P 500 and NASDAQ indexes. Remember to review the outlook for the stock market and the 5 year stock market forecast to get clarity on the macroeconomic picture.

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