2 Artificial Intelligence (AI) Stocks to Buy Before They Soar Under President Trump

Core Viewpoint - Nvidia and Meta Platforms are positioned to benefit from the business-friendly tax policies enacted by President Trump through the One Big Beautiful Bill Act, which includes provisions favorable to these companies [1][9]. Group 1: Nvidia - Nvidia reported a 56% increase in sales to $46.7 billion for its fiscal 2026 second quarter, driven by strong growth in data center and automotive segments, with non-GAAP earnings rising 54% to $1.05 per diluted share [3]. - The company is expected to maintain its leadership in AI infrastructure as demand for technologies like autonomous robots and self-driving vehicles grows, providing both hardware and software solutions for AI development [4]. - Nvidia's stock could benefit from the reversal of export restrictions, allowing sales of its H20 GPU to China, with potential future sales of a scaled-back version of its Blackwell GPUs [6]. - Wall Street analysts project Nvidia's earnings to grow by 34% annually over the next three years, making its current valuation of 58 times earnings appear fair [7]. Group 2: Meta Platforms - Meta Platforms reported a 22% revenue increase to $47.5 billion in its second quarter, with GAAP earnings jumping 38% to $7.14 per diluted share [8]. - The One Big Beautiful Bill Act made the corporate income tax rate of 21% permanent, allowing companies like Meta to avoid profit margin pressure from higher taxes and continue aggressive share repurchases [9]. - Meta is the second-largest ad tech company globally, with ad tech spending expected to grow at 14% annually through 2030, supported by its extensive user base across platforms like Facebook, Instagram, and WhatsApp [10]. - The company is leveraging AI to enhance user experience, resulting in a 5% increase in time spent on Facebook and a 6% increase on Instagram [11]. - Meta has introduced new advertising opportunities on Threads and WhatsApp, with potential future revenue from its generative AI application, which has over 1 billion monthly active users [12]. - Analysts expect Meta's earnings to grow at a 17% annualized rate over the next three years, making its current valuation of 27 times earnings reasonable for long-term investors [13].