During the first half of 2023, stocks faced volatility due to concerns over President Trump’s proposed import tariffs, which particularly impacted growth-oriented sectors like artificial intelligence (AI). After a dip in March and April, U.S. progress on trade negotiations has improved market sentiment, with tech companies reporting robust AI spending and earnings. Notably, AI stocks are gaining traction as fears of excessive tariffs ease.
Leading AI stocks include Nvidia, which has surged over 800% in two years and is trading at 33 times forward earnings estimates; Amazon, benefiting from AI tools and a $117 billion revenue run rate in its cloud unit, now trading at 34 times expected earnings; and SoundHound AI, which experienced a 150% revenue increase despite share drops. Other names like Palantir Technologies and Apple are highlighted for their growth potential, even amidst uncertainties related to tariffs.
