The Motley Fool·2025-03-14 07:15Core Viewpoint - The Nasdaq Composite is experiencing a correction as investors are selling growth stocks due to concerns over tariffs, trade wars, and a potential economic slowdown, but long-term investments may yield significant returns [1] Group 1: Nvidia - Nvidia reported sales of $130.5 billion for the fiscal year ending January 26, more than double the previous year's $60.9 billion [3] - The company projects revenue of around $43 billion for the current quarter, a 65% increase from the previous year [4] - Nvidia trades at a forward P/E multiple of 26, which is only slightly above the average tech stock's forward P/E of 25, making it an attractive investment despite a recent 14% decline in stock price [5] Group 2: Amazon - Amazon has integrated AI into its operations, enhancing its online marketplace and logistics with robotics [6] - The company is launching an upgraded Alexa+ assistant for $19.99 per month, free for Prime members, and has invested $8 billion in AI company Anthropic [7] - With $33 billion in free cash flow reported in 2024, Amazon is well-positioned to invest in AI opportunities, trading at a forward P/E of 30 [8] Group 3: Advanced Micro Devices (AMD) - AMD has seen a 50% decline in stock value over the past 12 months, attributed to a slow rollout of AI chips and competitive concerns [9] - The company reported a 14% sales growth last year, totaling $25.8 billion, with potential for significant revenue growth in the future [11] - AMD trades at a forward P/E of 22, offering a lower-cost alternative to Nvidia's chips, but faces risks in proving its competitiveness in the AI chip market [10][11]