Stocks have bounced back after escalating tariffs and rising geopolitical concerns have given way to hope for a more stable global trade environment. Technology names were some of the hardest hit with the tech-heavy Nasdaq Composite falling as much as 24% from recent highs.
Sector-specific concerns also hurt recent winners like artificial intelligence (AI) leader Nvidia (NASDAQ: NVDA) and AI server provider Dell Technologies (NYSE: DELL). The fears about declining investments to build AI infrastructure may have been premature, though. The result could be a surge in stocks like Nvidia, Dell, and another under-the-radar AI play as the year progresses.
Image source: Nvidia.