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In May 2025, the U.S. equity market rebounded significantly due to strong earnings, diminishing trade tensions, and increased investor confidence, prompting Deutsche Bank to elevate its target for the S&P 500 index from 6,150 to 6,550 by year-end. With this optimistic outlook, artificial intelligence (AI) stocks are expected to attract substantial capital inflows, suggesting a favorable environment for long-term investors.
Among the notable AI stocks, Nvidia (NASDAQ: NVDA) achieved a revenue of $44.1 billion for Q1 fiscal 2026, reflecting a 69% year-over-year increase. The company dominates the AI accelerator market and generates $26 billion in free cash flow. Broadcom (NASDAQ: AVGO) is also a key player, with a projected serviceable addressable market of $60 billion to $90 billion for fiscal 2027, following its $69 billion acquisition of VMware. Furthermore, CoreWeave (NASDAQ: CRWV) has reported revenue of $982 million, a 420% annual increase, thanks to its specialized AI-focused cloud infrastructure.
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