Stock Market Sell-Off: 2 Safe AI Stocks to Buy Amid Tariff Turmoil, According to a Wall Street Analyst

From Nasdaq: 2025-04-29 03:48:00

The S&P 500 fell into correction territory in just 22 days, a rapid drawdown reflecting economic uncertainty due to changes in U.S. trade policy under President Trump. Cloud and software stocks like Alphabet and CrowdStrike may be safer investments as these companies primarily sell services not subject to tariffs.

Alphabet, Google’s parent company, is a leader in digital advertising and cloud services, with strong revenue growth and market share projections. It reported strong financial results in Q1, attributing success to momentum in AI products. Analysts expect earnings to grow at 7% annually through 2026, making the current valuation reasonable.

CrowdStrike specializes in cybersecurity, offering endpoint security and managed detection and response services. It has a competitive advantage with rich data for effective AI models. While guidance suggests a decline in earnings this year due to investments, returns are expected next year. Investors should consider the price-to-sales ratio before buying.

Investors should consider the 10 best stocks to buy now, as identified by The Motley Fool Stock Advisor team, for potential high returns. Alphabet, despite not being on the list, has shown strong growth and market presence. With a significant outperformance compared to the S&P 500, joining Stock Advisor could provide valuable investment opportunities.



Read more at Nasdaq: Stock Market Sell-Off: 2 Safe AI Stocks to Buy Amid Tariff Turmoil, According to a Wall Street Analyst