Prediction: These 2 AI Stocks Will Rebound in the 2nd Half

Over the last two years, there’s been a significant influx of investments into a technology sector poised to be the next major player: Artificial Intelligence (AI). This multi-billion-dollar market is projected to skyrocket into the trillions within a few short years, transforming not only how businesses operate but also reshaping our daily routines. Such developments bode well for companies that jump on board early and make significant contributions, and smart investors are cashing in by driving up stock prices.

Earlier in the first half, several players experienced a lull in their progression. Initially, investors were concerned that President Trump’s import tariffs could hinder economic expansion, potentially affecting high-growth sectors like AI. Consequently, AI stocks and other growth-oriented investments saw declines in April due to these worries. However, in the past few weeks, there have been indications that the challenges might not be as formidable as anticipated – for instance, the U.S. is reportedly discussing tariffs with other nations – which has boosted optimism in the stock market. Interestingly, the S&P 500 has even touched new record highs recently.

I strongly believe that the two AI stocks which saw a slowdown or significant drop during the initial half of the year are about to make a comeback in the second half!

This version is written from the first person perspective and uses enthusiastic language, making it more engaging for readers.

1. Amazon

Initially this year, Amazon’s (AMZN) stock saw an upward trend, but it dipped in April due to worries about import tariffs. However, it started recovering since then, ending the first half of the year with no change in its value. There are indications suggesting that the optimistic trend will persist, and the stock is expected to rise further during the second half of the year.

Remember, Amazon is a long-standing pioneer in both online shopping and cloud services, consistently showing strong earnings growth over time. This might make potential investors who were hesitant a while ago feel more assured about investing in Amazon compared to relatively newer companies that haven’t yet demonstrated their capabilities. Furthermore, the company made significant changes to its cost structure a few years back, which enabled it to weather periods of higher inflation. Such adaptability should serve Amazon well when dealing with future challenges like import tariffs.

Amazon stands to gain significantly as the AI revolution progresses, given its dual role as both an end-user and supplier of AI technology. In terms of e-commerce, Amazon leverages AI throughout its logistics network for enhanced efficiency, resulting in reduced operational costs. On the other hand, Amazon Web Services (AWS), their cloud business, caters to customers with a broad selection of AI products and services, encompassing everything from chips to fully customizable AI models. This diverse offering has propelled AWS to an impressive $117 billion annual revenue rate.

Currently, Amazon is valued at approximately 36 times its projected future earnings, a cost that seems reasonable and may entice investors during the latter part of the year. This valuation could potentially aid this leading AI stock in making a comeback.

2. Apple

In the current period, Apple (AAPL) has encountered two challenges. Firstly, the company has lagged behind other tech titans in embracing Artificial Intelligence. Secondly, it is perceived as a business that could be adversely affected the most by import tariffs because of its heavy reliance on foreign production – majority of iPhones are produced overseas, particularly in China.

The ongoing challenges have had an impact on Apple’s stock, causing it to drop by 18% in the first half of the year. However, the difficulties are easing somewhat. Apple is just beginning its journey with Apple Intelligence, which could serve as a driver for growth in the near future. Additionally, trade discussions are ongoing – it’s worth noting that the U.S. is unlikely to take actions that would jeopardize the profitability of one of its major corporations. Currently, Apple ranks third in terms of market value, following Nvidia and Microsoft.

Similarly to Amazon, Apple is a company that has consistently demonstrated its strength and reliability over the years, achieving billions in earnings growth. It also boasts a strong protective barrier, or “brand moat,” which draws customers towards the iPhone – the world’s top-selling smartphone – regardless of its price or the wait time for new releases. For investors seeking a high-growth pick that offers minimal risk, these factors are worth considering.

Ultimately, this seasoned head honcho now boasts a fresh source of expansion, which is service-based income. With over 2.2 billion active devices globally, these devices generate regular income through service subscriptions, ranging from cloud storage to digital content.

This situation might encourage investors to overlook temporary hurdles and invest in Apple now, given its affordable 29 times projected future earnings – a move that could potentially boost the share price of this reliable long-term stock during the latter part of the year.

2025-07-22 03:15

1. Amazon

2. Apple

Read More