Earnings season is upon us again, providing insight into the latest performance and future outlooks of leading companies. Investors are particularly focused on comments from chief executive officers as U.S. firms face current challenges posed by President Trump’s import tariff plan. His announcement earlier this month sent stock indexes lower as fears mounted over increased prices on imports potentially affecting corporate profits.

One sector of particular concern is the tech industry, where many companies rely on imported materials and finished products. Despite Trump’s exemption for electronics, this may be only temporary. As companies release earnings, investors are keen to understand how these firms intend to navigate the prospect of tariffs.

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Does this imply that one should avoid tech stocks? Not necessarily. While tech companies might face immediate challenges, established firms are likely to thrive over the long term. Particularly, those positioned in the burgeoning artificial intelligence (AI) sector represent a compelling addition to any tech portfolio, especially given today’s favorable pricing. Let’s explore three promising AI stocks to consider before earnings season begins.

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1. Nvidia

Nvidia (NASDAQ: NVDA) is encountering several challenges, including a recent pause on chip exports to China and the looming threat of import tariffs. The company’s leading AI chips primarily come from Taiwan through Taiwan Semiconductor Manufacturing. Nevertheless, it’s crucial to focus on the positives.

As a global front-runner in AI, Nvidia delivers the highest-performance chips along with a complete suite of supporting products and services. This makes Nvidia a key player for clients seeking comprehensive AI solutions. With AI’s capacity to transform businesses and enhance efficiency, it is unlikely that customers will abandon these initiatives. Economic slowdowns can even accelerate companies’ AI adoption as they strive to cut costs and streamline operations.

Nvidia’s impressive track record of earnings growth and its current trading valuation—22 times forward earnings estimates—mark it as a strong buying opportunity at this time.

2. Amazon

Amazon (NASDAQ: AMZN) is another contender poised to capitalize on AI developments. The company employs AI to enhance effectiveness across its fulfillment operations, a necessity during potential economic downturns. Additionally, Amazon markets AI solutions through its cloud computing service, Amazon Web Services (AWS).

AWS holds the title of the top cloud provider and boasts a substantial customer base, making it a go-to destination for clients looking to build AI capabilities. In fact, AWS reported a staggering $115 billion annual revenue run rate last year, attributing its growth partly to AI innovations. The cloud platform offers a range of services from specialized chips to fully tailored options for large language models (LLMs).

Like Nvidia, Amazon has a solid history of earnings growth, solidifying its status as a reliable investment. It trades at 27 times forward earnings estimates, presenting a worthwhile buy today.

3. Meta Platforms

While you may primarily recognize Meta Platforms (NASDAQ: META) as a social media powerhouse with apps like Facebook, Messenger, WhatsApp, and Instagram, the company is expanding its focus on AI. Advertising revenue still forms the backbone of its business; however, AI is poised to play a growing role.

For instance, Meta’s introduction of Meta AI, available within its apps, has turned it into the most-utilized AI assistant globally. This development aims to increase user engagement, thereby attracting more advertising dollars.

Meta is also looking beyond social media, striving to become a leader in the broader AI landscape. With projects like the Llama LLM and potential investments of up to $65 billion in AI this year, the company is making substantial commitments.

As a consistent growth performer with significant plans for AI, Meta is currently trading at a favorable 20 times forward earnings estimates. This makes it an appealing stock to consider as earnings season approaches, with strong potential for the future.

Should you invest $1,000 in Nvidia right now?

Before purchasing stock in Nvidia, take note of the following:

The Motley Fool Stock Advisor team has pinpointed what they consider the 10 best stocks available for investment currently, and Nvidia is absent from that list. The selected stocks hold tremendous potential for substantial returns in the years to come.

Consider Netflix’s inclusion on this list from December 17, 2004… a $1,000 investment then would now be worth $524,747!* Or when Nvidia was recommended on April 15, 2005… if you invested $1,000 at that time, it would now be worth $622,041!*

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*Stock Advisor returns as of April 14, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is also a member of The Motley Fool’s board. Adria Cimino is invested in Amazon. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. Please refer to The Motley Fool’s disclosure policy for more details.

The views expressed here are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.