2 Artificial Intelligence (AI) Stocks That Could Be Poised for a Big Second-Half Comeback


  • Growth stocks, including AI players, faced challenging times earlier in the first half as investors worried about the economy.

  • The following two players could benefit from positive news in the months to come.

  • 10 stocks we like better than Apple ›

The first half of the year has been somewhat of a rollercoaster ride for stocks — and investors. Though all three major indexes have now crossed into positive territory, that wasn’t the story just a few weeks ago. The S&P 500 index, the Dow Jones Industrial Average, and the Nasdaq Composite each sank in the early months of the year amid concerns that President Donald Trump’s import tariff plan would hurt the economy, earnings, and stock performance.

Since then, positive signs, such as initial trade deals and strong earnings reports, have eased investors’ minds, and as a result, the indexes rebounded. Still, certain growth stocks, such as some artificial intelligence (AI) players, remain in the doldrums and are heading for a first-half decline. Let’s take a look at two that could be poised for a big second-half comeback.

An investor cheers behind a laptop.
Image source: Getty Images.

As Trump announced his tariff plan, investors worried about what it could mean for Apple (NASDAQ: AAPL), in particular, because the company produces most of its iPhones in China, a country most highly targeted by tariffs. Though the president exempted electronics products, this exemption is temporary. He even threatened Apple recently with a 25% tariff on all imported iPhones.

Apple made a move to diversify its manufacturing base, promising that most U.S.-destined iPhones would soon be made in India, but that country faces tariffs, too. All this tariff uncertainty weighed on Apple stock, pushing it down by about 20% so far this year.

So, why should we expect a comeback in the second half? While Trump is serious about bringing manufacturing back to the U.S., it’s unlikely that he and his administration would make moves to destroy some of the country’s top companies, including Apple. We’ve seen signs of flexibility in initial U.S. trade deals with the U.K. and China, so it’s reasonable to expect a compromise with tech companies that won’t limit their growth.

Meanwhile, Apple is a well-established player with a strong financial situation. The company has more than $48 billion in cash and marketable securities. So, it has the resources to address challenges. At the same time, the smartphone giant has a newish growth engine in the form of services. Services revenue, thanks to Apple’s huge base of installed devices, has reached record levels quarter after quarter. This growth should continue as loyal Apple users continue to rely on the company for data storage, digital entertainment, and more.



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