Tech stocks are experiencing a resurgence after the Nasdaq Composite index fell in January following DeepSeek’s breakthroughs in artificial intelligence training and inference efficiency. However, many top tech names, including Amazon, Lam Research, and Meta Platforms, have shown resilience in the face of tariffs and market volatility.
Amazon (AMZN) remains a leader in cloud computing, with its AWS segment generating $29.3 billion last quarter, up 17% year over year. Despite slower growth rates compared to competitors, AWS’s significant size and planned investments in capacity expansion make it an attractive opportunity. Amazon is also investing heavily in custom silicon solutions for AI, such as the Trainium and Inferentia machine learning chips.
Lam Research (LRCX) is a top manufacturer of semiconductor fabrication equipment, benefiting from high demand for its equipment in general silicon chip production and memory chip manufacturing. The company’s revenue grew by 24% last quarter, with management expecting double-digit percentage earnings growth over the next four years.
Meta Platforms (META), behind Facebook and Instagram, is making significant bets on artificial intelligence, investing $64 billion to $72 billion in capital expenditures this year. Its strong engagement growth and rising ad prices have propelled revenue higher by 16% last quarter, setting it apart from other social media advertising companies. Meta’s AI-powered marketing tools offer even more opportunities for businesses, while its messaging apps could become a significant source of revenue.
All three stocks are undervalued compared to their long-term averages, making them attractive investment opportunities in the current market. With their potential to book double-digit percentage earnings growth and huge competitive advantages, Amazon (AMZN), Lam Research (LRCX), and Meta Platforms (META) are too cheap to ignore at this price.
Source: https://www.fool.com/investing/2025/05/11/nasdaq-recovery-3-artificial-intelligence-ai-stock