As of the close on May 29, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average have each delivered roughly breakeven returns for the year. While such returns are typically underwhelming, they are notable considering these major indexes fell by double digits just a month prior, making a return to even feel like a victory. One intriguing aspect of this year’s market activity is the timing of volatility, which seems closely tied to significant announcements from Washington, D. C. Data indicates the largest market declines and gains in 2025 correspond to policy moves, especially regarding tariffs led by President Donald Trump. When Trump announced new tariffs, markets reacted negatively; conversely, easing of such pressures triggered sharp rebounds. This phenomenon is dubbed the “TACO trade” — “Trump always chickens out. ” Given the ongoing tariff uncertainties, markets will likely remain volatile. However, there are two clear AI stocks worth considering as strong buys now, regardless of TACO trade turbulence. Betting solely on Trump's next move is risky and short-term, but focusing on solid, long-term investments amid the noise is prudent. Here are two AI-related stocks savvy investors may want to buy on dips as TACO trade fluctuations continue: 1. Nvidia Nvidia (NVDA) is a dominant player in high-performance GPUs and a key bellwether for the AI industry. When Nvidia’s business grows, investor confidence in the AI sector rises. Nvidia benefits from ongoing infrastructure investments, as cloud giants like Amazon, Microsoft, Alphabet, and tech leaders such as Meta, Oracle, and Apple expand data centers and buy chips, offering Nvidia access to a multitrillion-dollar market opportunity. Tariff-related challenges mainly stem from China, where export controls and competition from Huawei create hurdles.

Nonetheless, Nvidia is navigating these headwinds by securing contracts in the UAE and Saudi Arabia to supply AI data centers with its latest Blackwell GPUs. Rumors also suggest Elon Musk’s AI startup, xAI, may spend roughly $40 billion on Nvidia chips for upcoming GPU clusters. Despite some valuation expansion after Nvidia’s strong Q1 earnings, the stock remains reasonably priced on a forward P/E basis. I expect Nvidia to rebound significantly in the latter half of 2025 as tariff concerns diminish. 2. Amazon Amazon might appear vulnerable due to tariffs impacting its core e-commerce business. However, my analysis focuses on two other key segments, particularly Amazon Web Services (AWS), the company’s cloud infrastructure arm. AWS continues to grow sales rapidly and improve operating margins, indicating successful AI-related investments so far. Importantly, AWS generates most of Amazon’s operating profits, sustaining strong cash flow even amidst economic uncertainty. This financial strength gives Amazon high operating leverage to reinvest aggressively across high-growth areas. Consequently, Amazon can integrate AI-driven innovations throughout its ecosystem — including e-commerce, logistics, physical retail, advertising, streaming, subscriptions, and direct-to-consumer healthcare. Such strategic positioning has attracted notable investors like Bill Ackman, who recently joined Warren Buffett and Cathie Wood in acquiring Amazon shares. I believe Amazon is on track to become Wall Street’s first $5 trillion company. While near-term tariff risks exist, Amazon has weathered regulatory challenges before and continues to diversify its platform successfully, building multiple multibillion-dollar profitable businesses. Overall, Amazon stands out as an underappreciated opportunity, and I recommend buying dips amid continued TACO trade volatility. In summary, despite tariff-driven uncertainties and market swings linked to Trump’s trade policies, investors focusing on strong AI leaders like Nvidia and Amazon are poised to benefit from long-term growth beyond the temporary noise.