From Nasdaq: 2025-06-03 05:05:00

In the first months of the year, major benchmarks struggled due to concerns about the economy. President Trump’s tariffs on imports raised worries about higher costs for businesses and consumers, potentially impacting corporate earnings. However, recent trade deals with the U.K. and China, along with exemptions for electronics, have helped the markets rebound.

Despite ongoing uncertainty, recent legal battles, and escalating tensions with China, the market outlook may improve. Artificial intelligence (AI) stocks, expected to surpass $2 trillion by the early 2030s, could be promising investments. Three AI stocks to consider for a potential 2025 rebound include Advanced Micro Devices, Broadcom, and Oracle.

1. Advanced Micro Devices (AMD) has shown growth potential in the AI chip market, with its MI300X chip gaining traction against competitors like Nvidia. AMD’s data center revenue surged 57% in the recent quarter, with year-over-year growth accelerating. The stock, trading at 27x forward earnings estimates, offers a compelling investment opportunity.

2. Broadcom (AVGO) has seen significant growth in AI revenue, driven by demand from cloud service providers. The company forecast $4.4 billion in AI semiconductor revenue for the second quarter, indicating strong momentum. With a valuation of 36x forward earnings estimates and room for growth, Broadcom may see continued success.

3. Oracle (ORCL) has emerged as a key player in the AI market, offering cloud solutions and witnessing a nearly 50% increase in AI cloud infrastructure revenue. The company’s involvement in AI infrastructure projects and partnerships with industry leaders like Nvidia position it for future growth. Trading at 27x forward earnings estimates, Oracle appears reasonably priced for potential gains.

Consider investing in AI stocks like Advanced Micro Devices, Broadcom, and Oracle for potential growth opportunities in the evolving market landscape. Stay informed about market trends and consult with financial advisors for personalized investment strategies.



Read more at Nasdaq: 3 Artificial Intelligence (AI) Stocks to Buy If You’re Bullish on a 2025 Rebound