AI stocks, including Meta Platforms and Microsoft, are rebounding after recent economic concerns

From Nasdaq: 2025-05-22 04:07:00

Artificial intelligence (AI) stocks were a major driver of stock market gains in recent years, but momentum paused due to economic concerns and import tariffs. However, a recent deal between Trump and China on tariffs has reignited optimism for AI companies.

AI stocks are rebounding from recent lows, offering a good opportunity for investors to buy in at interesting price levels. Wall Street is optimistic about companies like Meta Platforms (NASDAQ: META) and Microsoft (NASDAQ: MSFT) as potential stock market winners in the near future.

Meta Platforms, known for its social media platforms, is also focused on strengthening its AI presence. With innovative AI offerings like Llama, Meta is positioning itself for leadership in AI and has the resources to support its AI goals.

Microsoft, a software giant, has been successful in the AI space with significant revenue growth from AI investments. The company’s use of AI across its operations and cloud services has led to strong financial performance and growth potential.

Analysts predict about 11% gains for both Meta and Microsoft in the next 12 months, but the choice between the two comes down to valuation. While both are strong AI companies, Meta may be the cheaper buy currently with promising long-term AI prospects.

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Read more at Nasdaq: Better Wall Street AI Favorite to Buy Now: Meta Platforms vs. Microsoft