AI Stocks Are Back (MSFT, NVDA, PLTR)

Core Viewpoint - Investor focus is shifting back to artificial intelligence (AI) as geopolitical concerns ease and market volatility subsides, making AI stocks increasingly favorable [1] Group 1: AI Market Dynamics - The AI boom is accelerating across various sectors, including cloud infrastructure, enterprise software, and national defense [2] - Microsoft, Nvidia, and Palantir are highlighted as compelling investment opportunities for gaining exposure to the AI theme [2] Group 2: Microsoft Analysis - Microsoft has emerged as the top-performing stock among the "Magnificent 7" year-to-date, benefiting from strong fundamentals and lower exposure to tariff risks [3] - The company's momentum is fueled by its deep integration with OpenAI and surging demand for cloud services, with Azure showing the fastest growth among major cloud providers [4] - Technically, Microsoft stock has broken out of a long-term bull flag pattern, indicating a bullish continuation as long as it holds above the $420 breakout level [5] Group 3: Palantir Analysis - Palantir Technologies has performed well over the past two years, leveraging its unique position in defense, government, and enterprise data analytics [8] - The stock is currently forming a nested bull flag pattern, with support around$108 and resistance near $125; a breakout above$125 could signal a continuation of its uptrend [9] - Palantir holds a Zacks Rank 2 (Buy) rating, reflecting positive earnings revisions [10] Group 4: Nvidia Analysis - Nvidia is the leader in AI infrastructure, providing essential GPUs for data centers, with demand showing no signs of slowing [13] - The stock is trading at a reasonable 27.3x forward earnings, significantly lower than its five-year median of 55x [14] - Nvidia has recently broken out from a descending bull channel, maintaining an uptrend as long as it holds above the key breakout level of $114 [14] Group 5: Investment Considerations - With tariff-driven volatility behind, investor sentiment is returning to long-term growth themes, particularly in AI stocks [15] - Microsoft, Nvidia, and Palantir each present strong technical setups, improving fundamentals, and attractive valuations, making them high-conviction options for investors [16]