The first half of the year was a difficult one for many artificial intelligence (AI) stocks as investors fled high-growth players. The reason? They worried that President Donald Trump’s import tariff plan might lift prices for a wide range of goods — and this could hurt the consumer’s buying power, weigh on corporate expenses, and eventually stop growth companies in their tracks.
As a result, the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite slid in April, but in recent weeks, investor sentiment has improved. Initial trade deals with the U.K. and China helped, as did commentary from tech giants, who reiterated capital spending plans, suggesting that potential tariffs wouldn’t stop their momentum.
Though the tariff situation remains uncertain, the market’s more sanguine view, as well as certain companies’ solid long-term outlooks, make now a fantastic time to get in on AI stocks. And two in particular may be well positioned to soar in the second half.