Stocks plummeted due to fears of a trade war post "Liberation Day" tariff announcement

From Yahoo Finance: 2025-04-06 10:15:00

Following President Donald Trump’s “Liberation Day” tariff announcement, stocks plummeted due to fears of a potential global trade war impacting the economy. However, this created entry points for bargain tech stocks like Nvidia, with a low forward P/E ratio and strong growth potential in AI. Nvidia’s GPUs are crucial in driving the AI revolution, unaffected by the tariffs on Taiwan.

Amazon’s shares were affected by the new tariffs, potentially leading to increased prices on goods. However, the e-commerce giant remains competitive with most goods made in foreign countries. Amazon’s profitability is driven by Amazon Web Services (AWS), investing in AI services and custom AI chips. Trading at a low forward P/E ratio, Amazon is positioned well for growth.

Meta Platforms saw a revenue growth of 21% last quarter, driven by AI efforts enhancing advertising campaigns and user engagement. While higher prices and a global recession could impact its ad-based business, Meta remains a top digital advertising platform with long-term opportunities in social media. Trading at a low forward P/E ratio, Meta presents a bargain for investors.

Considerations from the Motley Fool Stock Advisor analyst team suggest that Nvidia may not be among the top 10 stocks for investors to buy now. However, historical returns from previous top stock recommendations highlight significant growth potential. With a total average return outperforming the S&P 500, Stock Advisor offers insights on top-performing stocks for investors.



Read more at Yahoo Finance: 3 Top Bargain Tech Stocks Ready for the Next Bull Run