Between 2023 and 2024, the S&P 500 and Nasdaq Composite surged with total returns of 58% and 87%, respectively, largely driven by the artificial intelligence (AI) revolution. However, 2025 has taken a different turn, marked by significant panic-selling in growth stocks in April, amid investor concerns over the impacts of President Donald Trump's tariff policies. Yet, these fears may be exaggerated. Recent updates from major AI industry players suggest continued strong investment in AI infrastructure. Key companies such as Microsoft, Amazon, Alphabet, Meta Platforms, and Advanced Micro Devices (AMD) are dedicating substantial resources to AI-related projects, with their capital expenditures (capex) and revenue trends indicating robust demand and growth in AI. Cloud hyperscalers—Amazon, Microsoft, and Alphabet—are experiencing strong cloud business growth, with Microsoft’s Azure revenues up 35% year-over-year, Alphabet up 28%, and Amazon up 17% in Q1 2025. These figures align with their infrastructure budgets, collectively projected to reach $260 billion in AI capex for the year. Meta Platforms has escalated its AI investment aggressively, increasing capex from $28. 1 billion in 2023 to $39. 2 billion in 2024, with 2025 guidance recently raised from $60–65 billion to $64–72 billion, reflecting renewed confidence in its AI-driven initiatives, which include home-grown chips and AI-powered wearable hardware. AMD’s semiconductor stocks have been sensitive to trade tensions due to Chinese export regulations, a major market for chips.

Despite this uncertainty, AMD CEO Lisa Su emphasized ongoing strong investment in AI infrastructure and expects significant growth through the second half of 2025, highlighting resilience amid geopolitical challenges. For Nvidia, the semiconductor heavyweight and AI infrastructure leader, stock performance has been mixed recently. Since its Q2 2024 earnings in August, Nvidia’s share price dropped about 9%, reflecting broader macroeconomic uncertainties like the presidential campaign and Federal Reserve policies rather than company fundamentals. Despite this, Nvidia’s financial results have been consistently strong. Looking ahead to Nvidia's Q1 2025 earnings report on May 28, the company is well positioned to capitalize on AI’s growth. Analysts expect Nvidia’s revenue and earnings to nearly double over the next two years, reinforcing its dominant role in AI infrastructure. Given sustained big tech investments and AMD’s optimistic outlook, the AI sector’s momentum appears robust. Therefore, Nvidia’s stock is forecasted to soar post-earnings, making it a compelling buying opportunity despite recent volatility.