June 2025: Stock Markets Steady Amid Market Turmoil
As June begins and 2025 approaches its midpoint, stocks are nearly unchanged year-to-date. Currently, the S&P 500 remains virtually flat.
The market dynamics have shifted since the start of 2025, yet stock prices have remained stable. While this may concern some investors, the long-term outlook for many companies appears promising.
Top Investment Picks for $1,000
For those considering investments, five stocks stand out as strong buys for June, particularly when viewed over a five-year horizon.
Nvidia
Nvidia (NASDAQ: NVDA) specializes in artificial intelligence (AI), particularly through its GPUs used in AI model training. The company anticipates significant growth in data center capital expenditures, projected to increase from $400 billion in 2024 to $1 trillion by 2028.
Nvidia posted a revenue increase of 69% in the first quarter of 2026, despite challenges in its China operations. This growth underscores its potential for further investment.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM) serves as a major player in semiconductor production, providing chips for many high-tech companies. Its neutral business model avoids conflicts of interest, allowing it to focus solely on advanced chip fabrication.
Management projects a 45% compound annual growth rate (CAGR) for AI-related revenue over the next five years, with overall revenue expected to rise nearly 20% CAGR. The stock trades at about 21 times forward earnings, making it a feasible investment opportunity.
Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is trading at around 18 times forward earnings, below the S&P 500 average. Concerns about AI disruption and potential regulatory actions have negatively impacted its stock price.
However, Alphabet is advancing in AI through innovative search technologies. The current fears may be overstated, creating a compelling investment opportunity.
Adobe
Adobe (NASDAQ: ADBE) faces similar AI-related market fears but remains resilient. Generative AI tools lack the finesse of Adobe’s products, and its proprietary solutions continue to integrate well with its services.
Trading around 20 times forward earnings, the stock is considered undervalued, especially given the company’s aggressive share buybacks, which could significantly boost earnings per share over time.
Amazon
Amazon (NASDAQ: AMZN) is facing scrutiny regarding tariffs impacting its e-commerce operations; however, its profitability largely derives from Amazon Web Services (AWS).
AWS accounted for just 19% of revenue in the first quarter but contributed 63% of operating profits due to its higher margins. As AWS continues to grow alongside trends in AI and cloud migration, overall profits are expected to increase significantly.
# Amazon’s Tariffs Bring Investment Opportunities Amid Market Uncertainty
## Investor Opportunities in Amazon’s Shift to Cloud Computing
Concerns rise as the market weighs the impact of tariffs on Amazon’s commerce business. Investors are viewing this weakness as a chance to purchase shares, with a focus on Amazon’s strengths in cloud computing over retail.
## Nvidia Investment Considerations
Before investing $1,000 in Nvidia, potential investors should be aware that it is not among the latest top stock recommendations from the Motley Fool’s Stock Advisor. The analysts selected ten stocks they believe could yield significant returns in the future.
For context, if one had invested $1,000 in Netflix when it was recommended on December 17, 2004, that investment would today be worth $651,049. Similarly, an investment in Nvidia from April 15, 2005, would have grown to $828,224.
## Performance Insights
The Stock Advisor boasts an average return of 979%, significantly outpacing the S&P 500’s 171% return. Investors are encouraged to review the current top ten stocks, available through the service.
### Disclaimer
*The returns mentioned are as of May 19, 2025. The views expressed are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.*
