4 Artificial Intelligence (AI) Stocks That Could Soar in the Second Half of 2025

Core Viewpoint - Artificial intelligence (AI) investing remains a dominant theme in the market, with several AI stocks poised for significant growth in the latter half of 2025 [1] Group 1: Nvidia - Nvidia's stock has increased approximately 30% this year, and the market may not have fully accounted for recent developments [4] - The U.S. government revoked Nvidia's export license for H20 chips to China, impacting projected Q2 growth. Without this license, Nvidia expects 50% year-over-year growth, but with projected H20 sales of $8 billion, growth could rise to 77% [5] - Although H20 sales won't impact Q2 results, they could influence Nvidia's Q3 and Q4 guidance, potentially driving shares higher [6] Group 2: Alphabet and Adobe - Alphabet and Adobe are currently undervalued compared to the broader market, trading at significant discounts despite strong historical performance [7] - The S&P 500 is trading at 23.7 times forward earnings, while both companies are cheaper, with the market assuming generative AI will disrupt their businesses [9] - Despite potential long-term disruption, both companies are well-established and have delivered strong results, presenting a buying opportunity for investors [10] - Continued strong performance and positive guidance could lead to significant stock price increases in the latter half of the year [12] Group 3: Amazon - Amazon's investment potential lies primarily in its cloud computing segment, Amazon Web Services (AWS), which is the market leader and is experiencing rapid growth due to AI and cloud migration trends [13] - AWS contributes 63% of Amazon's operating profits while accounting for only 19% of revenue in Q1, with a growth rate of 17% in that quarter [13] - Continued growth in AWS is expected to drive Amazon's profits higher, potentially leading to further stock price increases throughout 2025 [14]