The stock market may seem like a difficult place right now, with indexes taking new directions from day to day and even from hour to hour. President Donald Trump’s tariffs on imports have stoked concern about corporate profits moving forward and the health of the general economy. The president has put a 90-day pause on his initial plan to allow for negotiations between the U.S. and trading partners, but until solutions are found, stock market volatility could persist.
But this doesn’t mean you should avoid investing. In fact, now, while valuations are down, is a great moment to pick up shares of top-quality companies — even some that could help set you up for life. What I mean by this is if you buy shares of these particular players today and hold on for the long term, you might score a major win.
Companies present in the area of artificial intelligence (AI) offer particularly strong buying opportunities as they’ve dropped considerably in recent weeks. Yet, many are still well positioned to gain over the long term as the AI boom continues. Let’s check out two that could supercharge your portfolio.
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1. Nvidia
Nvidia (NVDA 2.91%) has been the star of the AI show so far, and that’s likely to continue thanks to this tech giant’s focus on innovation. The company makes the highest-performance graphics processing units (GPUs), or chips, that exist today. As a result, customers are willing to wait their turn to get their hands on the latest versions. As Nvidia launched its new Blackwell architecture and chip this past winter, demand surpassed supply, and the platform brought in $11 billion in its first quarter of commercialization.
Even better, Nvidia has promised to update GPUs annually and has already spoken publicly and in detail about its roadmap for the coming two years. This rapid pace of innovation should keep Nvidia ahead of the competition. And from what we can see from customer behavior so far, demand will likely remain high for Nvidia’s newest releases.
It’s also important to note that Nvidia sells not only chips but also a complete suite of AI products and services. The company is even expanding into quantum computing by constructing a quantum research center in Boston. So, even if Nvidia stock stagnates in the near term amid today’s tariff uncertainty, the company is well positioned to benefit from AI and quantum computing growth over time.
That’s why, trading for 23x forward earnings estimates right now, Nvidia stock looks like a particularly good deal — that may eventually help put you on the path to wealth.
2. Meta Platforms
You probably know Meta Platforms (META -0.49%) best thanks to the apps on your phone. Meta owns the world’s most popular ones, from Facebook and Messenger to Instagram and WhatsApp. So, you may not imagine Meta as a major AI player. But this social media giant has jumped into the AI arena with billions of dollars in investment over the past few years and aims to make this technology a core part of its business.
So far, Meta has been working toward that goal by developing its own large language model (LLM), Llama. It’s using this tool to power innovations such as Meta AI, its AI assistant. Importantly, Meta has been developing Llama in an open-source manner, meaning others can use or make changes to the software as they see fit. This offers Meta many benefits, including access to more knowledge and talent, and sets the company on the path to becoming a leader in the field.
Now, you may be wondering how Meta will monetize its AI investments. One major way is by serving us AI tools — such as Meta AI — that will keep us on its social media platforms longer. That should prompt advertisers to spend more to reach us where they know they’ll find us. Advertising is already Meta’s main source of revenue, but AI could result in a significant boost. And thanks to its AI investments, Meta may also develop other products and services.
Right now, Meta shares trade for 21x forward earnings estimates, a fantastically low price for a stock that, over time, could help set you up for life.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.