AI stocks, including Nvidia, faced challenges in 2025, but potential for bullish resurgence ahead

From Nasdaq: 2025-05-20 21:00:00

In 2025, AI stocks have faced challenges, with Chinese start-up DeepSeek disrupting the market. Nvidia (NASDAQ: NVDA) saw a 30% drop, losing nearly $1 trillion in market cap. Despite this, Nvidia stock is expected to rebound and regain its position as the most valuable business in the world. President Trump’s tariffs have also impacted high-growth businesses, creating uncertainty.

Investors are advised to look beyond Nvidia’s Q1 report, as new tariff policies and export controls in China may affect financial performance. However, the AI industry’s major players are maintaining capex spending, indicating continued demand for Nvidia’s chips. Despite short-term challenges, Nvidia’s long-term growth prospects remain strong, with potential for a bullish resurgence in the second half of 2025.

For investors seeking lucrative opportunities, experts recommend considering “Double Down” stock recommendations. Past examples show significant returns for companies like Nvidia, Apple, and Netflix. The current alerts for three companies offer a chance to capitalize on potential growth. Joining Stock Advisor provides access to these opportunities before they may no longer be available.

Disclosure: The author’s views do not reflect those of Nasdaq, Inc. John Mackey, Suzanne Frey, and Randi Zuckerberg are board members of The Motley Fool. The Motley Fool has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia, and recommends long calls on Microsoft and short calls on Microsoft.



Read more at Nasdaq: Prediction: This Artificial Intelligence (AI) Stock Will See the Biggest Comeback in the Second Half of 2025