From Nasdaq: 2025-03-21 03:30:00

Artificial intelligence stocks have declined due to Trump administration tariffs, sparking recession fears. The “Magnificent Seven” AI stocks have all dropped year to date, with most falling over 10%. However, analysts see potential in Nvidia and Microsoft, with Nvidia’s stock potentially having a 69% upside and Microsoft’s having a 42% upside.

Nvidia’s GPUs power advanced AI systems, making it a key player in the AI industry. The company faces challenges with export controls and market concerns but has growth opportunities with new products like Blackwell GPUs and full-stack computing solutions for autonomous vehicles and robots. Wall Street expects Nvidia’s earnings to grow at 39% annually through fiscal 2027.

Microsoft, the largest enterprise software company and second largest public cloud, integrates AI into its products. The stock has fallen due to concerns about overspending on AI and market disappointment with financial results. However, cost efficiencies from AI could boost demand for Microsoft Azure cloud services, with the company’s AI business revenue up 175% year over year. Wall Street expects Microsoft’s earnings to grow at 13% annually through fiscal 2026.

Investors may want to consider buying positions in Nvidia and Microsoft, as both companies have potential for growth in the AI industry. While short-term uncertainties exist, long-term investors may benefit from the AI revolution and the companies’ strategies to capitalize on it. Wall Street analysts see upside potential in both stocks, with Nvidia projected to have a 69% return and Microsoft a 42% return.



Read more at Nasdaq: 2 Artificial Intelligence (AI) Stocks to Buy Before They Soar to $4 Trillion, According to Certain Wall Street Analysts