2 Tech Stocks That Could Help Set You Up for Life

Core Viewpoint - The current trade war and tariffs imposed by President Donald Trump have created uncertainty in the stock market, particularly affecting technology stocks, which may present buying opportunities for long-term investors [1][2]. Group 1: Technology Sector - Semiconductors are crucial for the global economy, with Taiwan Semiconductor Manufacturing Company (TSMC) being a key player in this industry, supplying chips to major companies like Nvidia, Amazon, and Alphabet [3]. - TSMC has announced a significant expansion in the U.S., planning to invest an additional $100 billion, highlighting the importance of robust semiconductor supply chains for sectors like cloud computing, AI, and electric vehicles [4]. - TSMC's revenue is expected to grow by over 20% year over year in 2025, driven by the booming AI market, with 59% of its revenue coming from high-performance computing [5]. Group 2: Amazon - Amazon's stock is currently undervalued due to tariff impacts, but the company remains well-diversified and is expected to continue growing, particularly in its North American retail segment, which generates approximately $400 billion [7][8]. - Amazon Web Services (AWS) is a significant revenue driver, currently growing at 19% year over year, with operating income nearing $40 billion in 2024, indicating high profit margins [9]. - With the increasing demand for AI and cloud services, AWS is projected to maintain double-digit revenue growth, and Amazon's stock is trading at one of its lowest forward P/E ratios at 27.4, suggesting potential for margin expansion [10][11].