Investors are used to technology on something good – a positive momentum that seemed unable to stop. The Giants in the Nasdaq industry led to two years of the two-number gains-and the individual stocks themselves offered baffled returns to the shareholders. For example, Nafidia (Nasdaq: nvda)The world’s leading artificial intelligence chips (AI) has witnessed the shares increased by 1600 % over the past five years, and Palantir TechnologiesSoftware moves AI, more than 800 % since he appeared on the 2020 market. This is only to mention two prominent players. Many others have also achieved great gains for investors.
Why is this outstanding performance? Investors accumulate in these shares optimistic about the future of artificial intelligence, a technology that can join others such as electricity or the Internet in the “Game Changes” list. This is because artificial intelligence provides the ability to save time, energy and corporate costs – and even lead to new discoveries.
In recent weeks, though, many opposite winds weigh the stocks in this dynamic field. Investors are concerned about export controls in the United States on chips to China, the American implementation of definitions of three major commercial partners, and the general uncertainty over the economy. All of this led to Nasdak to more than 7 % in the past two weeks, as some of its largest members have fallen. But before you turn your back in the technology sector, hold. Here are three reasons that investors should not worry about technology about the recent declines in artificial intelligence shares.
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As we mentioned, one of the main topics weighing the market is the tariff of President Donald Trump by 25 % on imports from Mexico and Canada and a 20 % tariff on imports from China. Technology companies produce many parts and products outside the United States, which means that they may face higher prices.
The White House says the definitions are in response to the flow of deadly drugs in the United States and indicated that this step was “until the crisis was reduced.” We do not know yet the period when the current trade war will continue, but this is a preliminary sign that the customs tariff is temporary.
So, yes, the definitions are a challenge today, but some of the world’s largest technology players and very profitable like NVIDIA or apple You should be able to manage these times – and long -term success.
As for export controls to China, this may not be temporary, but it may be manageable. It was implemented in 2022, and they have already reduced NVIDIA sales in this country by half compared to pre -control days, but NVIDIA still handed over a three -numbers growth around the world to $ 130 billion, which is a record in the last fiscal year, indicating that the problem was not disastrous for profits.
Of course, before investing in a chip player, it is important to see exactly how the company relies on China. But if, like NVIDIA, it grows dramatically through sales in other parts of the world, the player may still make a major investment.
Although the artificial intelligence boom has already achieved billions of dollars in revenue for companies such as Amazonand alphabetOf course, Nafidia, we are already in the early days of the story of this hot technology. The artificial intelligence market of $ 200 billion today is expected to reach more than $ 1 trillion by the end of the decade, which provides Amnesty International Giants a large space for growth.
It is also important to remember that we are still in the infrastructure building phase, as cloud services providers expand data centers to meet the demand and customers will launch new AI programs. But at the same time, we advance to another major growth stage that includes the application of Amnesty International to the problems of the real world.
Here, artificial intelligence agents, or programs designed to solve a complex problem and put a solution in practice are ready to work in some companies, simplify their operations and enhance their revenues. For example, at the call center, an artificial intelligence agent may deal with queries and initial questions. Service providers for chips to power and design these agents and companies that both use them should benefit from growth with the development of this stage.
All this means that the opportunity of artificial intelligence has not yet ended, and many companies must continue to achieve significant growth in revenue.
Positive signs, which indicate investment and growth, accumulate in recent weeks. Definition platforms She said she was planning to invest up to $ 65 billion this year to support artificial intelligence initiatives. The company aims to create a very large data center, as it will cover a large part of Manhattan, and will end Meta of the year with more than 1.3 million GPU processing units, or chips to operate artificial intelligence.
Openai announced earlier this year the Stargate project, a project aimed at investing $ 500 billion over the next four years to build the infrastructure of Amnesty International in the United States
NVIDIA recently said that the demand for the new Blackwell structure was “unusual”, and the platform has achieved $ 11 billion in revenue in the first quarter of marketing.
These are just few examples, but it reflects the scene of general artificial intelligence as investment and development continues at a rapid pace and a high level. As shown in Blackweell’s revenue number and through revenues worth billions of dollars in Alphabet and Amazon’s Cloud, artificial intelligence investments are fruits.
This may not be two points above now is the time to stay away from artificial intelligence, but instead to jump and buy down.
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He continues.
*The stock consultant dates back from March 3, 2025
John Maki, former Chole Foods Market, a affiliate company, a member of the Motley Fool Board of Directors. Randy Zuckerberg, former Director of Market Development and Speak for Facebook and Sister to Meta Platforms, Mark Zuckerberg, member of Motley Fool Board of Directors. Susan Fry, CEO of Alphabet, is a member of the Motley Fool Board of Directors. Adria Simino has sites in Amazon. Motley Fool has positions in Technologies Alphabet, Amazon, Apple, Meta, Nvidia and Palantir. Motley Fool has a disclosure policy.
3 Reasons The investors should not worry a lot about the decline in artificial intelligence shares (AI) this week was originally published by Motley Fool
