The stock market is currently experiencing a correction, leading some investors to adopt a more pessimistic outlook. There are numerous uncertainties surrounding the implications of tariffs, which often unsettles the market. Nonetheless, I believe there are several stocks poised to overcome skepticism and potentially thrive before the end of 2025.
Among the many attractive options, I particularly advocate for Nvidia (NVDA -0.75%), Taiwan Semiconductor Manufacturing (TSM -0.56%), Alphabet (GOOG 0.76%) (GOOGL 0.79%), Advanced Micro Devices (AMD -0.61%), and The Trade Desk (TTD 0.82%) as solid investments at this moment.
AI Investment Remains Strong
Nvidia, AMD, and Taiwan Semiconductor Manufacturing stand to gain directly from the emerging AI landscape. Despite market concerns regarding consumer impacts from tariffs, the spending patterns of AI hyperscalers on computing infrastructure are largely insulated from these issues. These companies are remarkably profitable and will continue to invest heavily in AI technology.
This consistent spending is a boon for these three firms, with Nvidia being the most significantly benefitted. Its market-leading data center GPUs dominate sales, and management projects substantial growth through 2025, anticipating a 65% revenue increase in Q1. This may even be a conservative estimate, as the company tends to exceed projections.
Although AMD’s GPUs are less prominent than Nvidia’s, they still contribute to the AI sector’s expansion. AMD’s data center revenue increased by 69% year-over-year in Q4, although its total revenue of $3.9 billion remains significantly lower than Nvidia’s $35.6 billion. Notably, AMD is currently more attractively valued.
Solid Positions for Alphabet and The Trade Desk
Alphabet benefits from its essential Google ad products, providing a cushion against economic downturns. Its revenue remains stable, with Google Cloud acting as a major growth catalyst—showing a revenue increase of 30% in Q4. Given the cloud computing sector’s role in the AI surge, Alphabet’s current stock, priced under 18 times forward earnings, presents a compelling investment opportunity.
The Trade Desk, another key player in digital advertising, offers a platform for advertisers to optimize placement strategies. Though it recently underperformed and missed revenue guidance due to transitioning platforms, resulting in a significant stock price drop, the long-term prospects remain robust. With the stock down over 60% from its peak, now is an ideal time to invest in The Trade Desk, as its future potential far outweighs short-term setbacks.
Suzanne Frey, a senior executive at Alphabet, is a member of The Motley Fool’s board. Keithen Drury holds investments in Alphabet, Nvidia, Taiwan Semiconductor Manufacturing, and The Trade Desk. The Motley Fool has positions in and advocates for Advanced Micro Devices, Alphabet, Nvidia, Taiwan Semiconductor Manufacturing, and The Trade Desk, following a disclosure policy.
