2 Artificial Intelligence Stocks Ready to Surge in the Second Half of 2025

2 Artificial Intelligence (AI) Stocks Set to Soar in the Second Half of 2025

After a challenging first half in 2025, AI stocks are regaining momentum. Investors had pulled back due to concerns about tariffs and their impact on growth companies. However, recent trade agreements and strong capital spending plans from tech giants have improved sentiment, making this a promising period for key AI players.

Here are two AI stocks that stand out as leaders and could deliver significant gains in the coming months.

1. Amazon (NASDAQ: AMZN)

Amazon's stock was flat in the first half of 2025, but the company is well positioned to benefit from ongoing AI trends. Concerns about tariffs affecting e-commerce sales and Amazon Web Services (AWS) spending have so far not materialized. Amazon’s diverse product sourcing and global supply chains give it flexibility to manage import tariffs effectively.

AWS remains a core growth driver, with enterprise customers maintaining their AI investments despite economic uncertainties. Amazon also revamped its cost structure in recent years to handle inflationary pressures, making it better equipped to absorb future cost challenges.

As AI infrastructure development accelerates, AWS—with its massive cloud footprint—stands to gain from the rising demand for AI compute power and solutions. Amazon’s valuation has become more attractive, trading at about 35 times forward earnings, down from over 40 times last year, signaling an opportunity for investors.

2. Alphabet (NASDAQ: GOOG, GOOGL)

Alphabet’s stock dipped over 6% in the first half but has rebounded strongly by more than 20% since April. The company’s solid fundamentals and leadership in internet search and cloud computing set the stage for further growth.

The Google platform generates significant ad revenue by offering targeted marketing solutions, enhanced by Alphabet’s proprietary large language models (LLMs). These AI-driven improvements improve user search experiences and ad effectiveness, encouraging advertisers to maintain or increase their budgets.

Google Cloud is another growth engine, with AI products driving a 28% revenue increase to over $12 billion in the latest quarter. As businesses scale up their AI programs, Alphabet is positioned to capture an expanding share of the cloud market.

Currently, Alphabet trades at a modest 18 times forward earnings, offering an attractive entry point for investors looking to capitalize on AI growth.

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