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Tech stocks are making a comeback after a shaky start to 2025.
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Artificial intelligence continues to drive significant earnings and revenue growth.
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These three stocks are trading well below their all-time highs, but their growth potential remains strong.
In case you haven’t noticed, tech stocks are on the rise again.
After reaching an all-time high in December, the Nasdaq Composite index dropped in January following major disruptions in the AI sector due to DeepSeek’s advancements. Concerns about potential tariffs from President Donald Trump led to increased selling, which worsened in April.
Since then, the Nasdaq has recovered about half of its losses, now sitting roughly 12% below its December peak. There are still many promising investments available, including three AI stocks that investors should not overlook.
1. Amazon (NASDAQ: AMZN)
Amazon leads in cloud computing with its AWS segment, which generated $29.3 billion last quarter, a 17% year-over-year increase. Although this growth rate lags behind competitors, AWS is significantly larger and still constrained in capacity.
2. Lam Research (NASDAQ: LRCX)
Lam Research is a top producer of semiconductor fabrication equipment, critical for manufacturing high-end AI chips. A notable percentage of its revenue now comes from memory chip makers as demand rises for memory alongside AI advancements.
3. Meta Platforms (NASDAQ: META)
Meta, the parent company of Facebook and Instagram, is making considerable investments in AI, with plans to increase capital spending to up to $72 billion this year. Despite the competition, Meta’s engagement and advertising revenues are thriving.
Meta’s AI initiatives could transform its advertising services and create new revenue streams from its messaging apps. Although its share price has rebounded, the stock is still relatively attractively priced given its growth potential.
