Investors Shouldn't Panic Over New Tariffs: Key AI Stocks to Consider

President Donald Trump's recently imposed tariffs on Mexico, Canada, and China are causing fluctuations in technology stocks. As these tariffs came into effect on Tuesday, investors are feeling the pressure, particularly in the tech sector.

A well-known tech analyst, Daniel Ives from Wedbush, has a more optimistic perspective on the situation. He suggests that despite the ongoing concerns about tariffs, this may actually be a buying opportunity for savvy investors.

The Analyst Takeaways: Ives acknowledges that tariffs can lead to what he calls a "game of geopolitical poker." However, he points out that while there are many historical instances where geopolitical tensions and government decisions have negatively impacted stocks, this situation is manageable.

He mentions various factors that have historically caused stock market fluctuations, including wars, international conflicts, economic policy changes, and even the COVID-19 pandemic.

With the tariffs on Mexico and Canada already active, and those on China anticipated, investors are understandably anxious, especially concerning growth stocks.

Importantly, Ives emphasizes the necessity for investors to maintain perspective. He believes that it was expected that some form of tariffs would be implemented under Trump's administration.

"The critical point is how long these tariffs will stay in place, and when negotiations might start to lead to agreements on reciprocal tariffs with China, Canada, and Mexico," he notes.

As a pivotal moment, Ives expects Trump's speech to Congress on Tuesday will outline further plans regarding tariffs and highlight investments made by tech firms in the U.S.

"The greatest risk to the market, particularly impacting the AI sector, would be a hardline stance against China, especially regarding semiconductor exports and broader global policies," Ives warns.

He also references DeepSeek's role in shaping policies affecting China, predicting that the semiconductor industry may see tighter export controls in the near future.

"There is one chip that’s central to the AI Revolution, and that is produced by NVIDIA Corporation. Their GPUs are becoming as crucial as gold or oil in today's AI Arms Race," he elaborates.

Ives admits that sustained tariffs would likely lead to significant challenges for U.S. consumers. He adds, "This is a high-stakes poker game aimed at bringing other countries back to the negotiating table, which we believe won't last indefinitely."

The Tech Winners: Despite the looming tariffs, Ives asserts that they are unlikely to derail the long-term trends in the tech sector, particularly regarding AI, which he describes as one of the most important technological developments since the Industrial Revolution. He does caution that there may be temporary slowdowns.

Naming key stocks that he believes are set to succeed in the ongoing AI Revolution, Ives recommends the following:

• Apple Inc: $325 price target
• Amazon.com Inc: $280 price target
• Salesforce Inc: $425 price target
• Alphabet Inc: $220 price target
• Microsoft Corporation: $550 price target
• Nvidia: $175 price target
• Palantir Technologies: $120 price target
• Tesla Inc: $550 price target

Ives concludes by stating that any weaknesses in these stocks represent buying opportunities, given the strong fundamental demand.

He encourages investors not to "run to the hills," but rather to focus on owning stocks tied to the AI revolution that he has highlighted above.

Market Overview: The Invesco QQQ Trust, a key indicator for the tech sector, is currently down by 1%, priced at $491.91 on Tuesday. Year-to-date, the ETF has decreased by 4% but has risen 10.3% over the past year.

Tariffs, Stocks, AI