3 AI Stocks to Buy Amid Trump's Tariff Storm

Ladies and gentlemen, buckle up! We're diving headfirst into the world of artificial intelligence, where the storm of tariffs is brewing, but opportunities are aplenty. The market is in a frenzy, and for good reason. President Trump's tariff policies are shaking up the AI hardware supply chain, but don't let that scare you. Some companies are built to weather this storm, and they're poised to come out stronger than ever. Let's dive into the three AI stocks that you need to own right now: Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing.

Nvidia: The King of GPUs

Nvidia is the undisputed king of graphics processing units (GPUs), and their importance in the AI race cannot be overstated. These GPUs are the backbone of AI training and deployment, and Nvidia's products are the best in the game. With little competition and a critical role in the AI ecosystem, Nvidia is a no-brainer buy. The company's GPUs are deployed in vast quantities to train AI models and then operate them once deployed. Its GPUs and the infrastructure that supports them are the best in the game and have little competition. If you include other competitors, they also source parts from outside the U.S., so they are subject to the same fears as Nvidia. With how vital GPUs are to the AI race, the company will be just fine.

Broadcom: The Connectivity Maestro

Broadcom is another powerhouse in the AI hardware space, specializing in connectivity switches and custom AI accelerators (XPUs). These products are expected to provide massive growth over the next few years, with a market opportunity of $60 billion to $90 billion by 2027. Currently, only three companies use Broadcom's XPUs, and by 2027, this division will be pursuing a $60 billion to $90 billion market opportunity. However, four more customers are getting their XPUs up and running, which will add to this opportunity. Considering that revenue over the past 12 months totaled $54 billion, this would be huge growth. While there are some fears centered around tariffs for these two, the push for AI supremacy is much greater. As a result, investors need to look past the short term and realize that there is still a ton of long-term potential with Nvidia and Broadcom.

Taiwan Semiconductor Manufacturing: The Chipmaker Extraordinaire

Taiwan Semiconductor Manufacturing (TSMC) is the backbone of the AI hardware supply chain, manufacturing high-end chips that are essential for AI applications. President Trump threatened to levy a tariff on Taiwan, but that threat seems to have faded away after TSMC announced another $100 billion investment in U.S. semiconductor production facilities. This move has effectively mitigated the risk of tariffs, ensuring that TSMC's products remain competitive and affordable. TSMC is a major supplier for both Nvidia and Broadcom, and neither of them can actually manufacture chips, so they have to get them from somewhere, and TSMC is the best option available for high-end chips. President Trump threatened to levy a tariff on Taiwan, but that threat seems to have faded away after TSMC announced another $100 billion investment in U.S. semiconductor production facilities. So, one of the most crucial suppliers that might have driven up prices for Nvidia and Broadcom products doesn't need to worry about tariffs right now -- and these three are free of the burden of tariffs, at least right now.

The Market Sentiment: Risks and Opportunities

The current market sentiment towards AI stocks is significantly influenced by tariff concerns, which present both risks and opportunities for long-term investors. On one hand, the threat of tariffs looms over many companies, making anything imported more expensive. This could lead to reduced consumer confidence and spending, as consumers or businesses may hold out on purchasing products to wait out tariffs in the hope that they will be reduced. This uncertainty has caused a heavy sell-off in the stock market over the past week, with many investors worried about the impact of tariffs on their investments. For example, the article mentions that "Many investors are worried about this, which is why the stock market has sold off so heavily over the past week."

However, this market sentiment also presents opportunities for long-term investors. The sell-off has led to a significant decrease in the price of AI stocks, making them more affordable for investors. For instance, the article highlights that "All three stocks [Nvidia, Broadcom, and Taiwan Semiconductor] haven't been this cheap in over a year," with Taiwan Semiconductor trading at 18.8 times forward earnings, which is lower than the broader S&P 500. This pricing mismatch presents a buying opportunity for investors who are willing to look past the short-term volatility and focus on the long-term potential of these companies. The article also notes that "Until the market is convinced that the threat of tariffs is gone, these three will likely continue to sell off, which gives investors a huge opportunity to buy shares for a fantastic price."

The Bottom Line

In conclusion, while tariff concerns present risks to AI stocks in the short term, they also create opportunities for long-term investors who are willing to buy during the sell-off and hold onto their investments for the long term. Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing are three AI stocks that can weather President Trump's tariff storm and come out stronger than ever. So, don't miss out on this opportunity to buy these stocks at a discount. The market may be volatile, but these companies are built to last. BUY NOW!