Investing in Top AI Stocks Amid Market Uncertainty

The stock market currently faces volatility, with indexes changing direction frequently. Concerns over President Donald Trump’s tariffs on imports have raised questions about corporate profitability and the overall health of the economy. Although the president has paused his initial plan for 90 days to foster negotiations with trading partners, uncertainty may keep the stock market in flux.

However, this market turbulence shouldn’t deter you from investing. In fact, this downturn represents an opportunity to purchase shares of high-quality companies at lower valuations, potentially leading to significant long-term gains. A strategic approach could yield substantial rewards over time.

Where should you invest $1,000 right now? Our analyst team has identified the 10 best stocks to buy today. Learn More »

Among the promising investments are companies in the artificial intelligence (AI) sector. These firms have seen their stock prices decline in recent weeks, but they remain well-positioned for future growth as the AI boom continues. Here are two standout options that could enhance your portfolio.

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1. Nvidia

Nvidia (NASDAQ: NVDA) has emerged as a leader in the AI revolution, driven by its commitment to innovation. The company produces the highest-performance graphics processing units (GPUs) available today. Due to this high demand, customers are patiently awaiting the latest versions. In its first quarter of commercialization for the new Blackwell architecture, Nvidia generated $11 billion, highlighting strong demand.

Moreover, Nvidia plans to release updates to its GPUs annually and has openly shared its development roadmap for the next two years. Accelerated innovation will likely keep Nvidia ahead of competitors as customer interest remains robust.

Nvidia also markets a comprehensive range of AI products and services. The company is expanding into quantum computing with the establishment of a quantum research center in Boston. Thus, even if Nvidia stock experiences stagnation in the short term due to tariffs, the company is on a path to benefit from the growth of AI and quantum computing well into the future.

Currently trading at 23 times forward earnings estimates, Nvidia stock appears to be an appealing investment opportunity that could lead to long-term financial success.

2. Meta Platforms

You may recognize Meta Platforms (NASDAQ: META) primarily from its popular applications like Facebook, Messenger, Instagram, and WhatsApp. While Meta may not be the first company that comes to mind in the AI sector, it has committed substantial resources to becoming a significant player in AI development.

Meta is advancing its AI initiatives through projects like its large language model (LLM), Llama. This technology powers innovations in AI assistance, such as Meta AI. Notably, Meta is developing Llama with an open-source philosophy, allowing other developers to use and modify the software. This approach enhances Meta’s resource access and positions the company to emerge as a leader in AI.

How will Meta monetize its AI investments? One significant avenue is providing AI tools like Meta AI, which encourages users to spend more time on its social media platforms. Longer engagement invites higher advertising spending, already Meta’s primary revenue source, potentially leading to substantial business growth. Additionally, Meta’s investments in AI might inspire new product developments.

Meta shares currently trade at 21 times forward earnings estimates, presenting a compelling opportunity for investors looking for a stock that could provide transformative results over time.

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

Before you make a purchase of stock in Nvidia, consider the following:

The Motley Fool Stock Advisor analyst team has identified what they believe to be the 10 best stocks to buy today, and Nvidia did not make this list. The selected stocks hold the potential for considerable returns in the coming years.

Consider this: if you had invested $1,000 in Netflix when it was recommended on December 17, 2004, you would have $495,226 now. Additionally, if you had invested $1,000 in Nvidia when it was recommended on April 15, 2005, your investment would be worth $679,900!

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*Stock Advisor returns as of April 10, 2025

Randi Zuckerberg, a former director at Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is on The Motley Fool’s board of directors. Adria Cimino has no position in any of the mentioned stocks. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.

The views expressed in this article reflect the author’s opinions and do not necessarily represent those of Nasdaq, Inc.