Stocks Plummet Following Trump's 'Liberation Day' Tariff Announcement: Opportunities for Tech Investors

In a dramatic turn of events on the global financial stage, stocks took a significant hit following President Donald Trump's recent announcement of what he referred to as "Liberation Day" tariffs. The declaration has incited widespread fears regarding the onset of a potential global trade war and its repercussions on the world's economy. Investors are understandably anxious as the markets react, fearing that this turmoil could lead to considerable instability in stock prices in the weeks ahead. However, amidst this turmoil lies an intriguing silver lining: the potential for investors to find solid entry points into some leading tech stocks. This article will outline three tech stocks that savvy investors might consider purchasing during this turbulent time.
1. Nvidia
Nvidia (NASDAQ: NVDA), a powerhouse in the growth stock arena over the past several years, has unfortunately found itself swept into the bargain bin alongside numerous other stocks. Currently, Nvidia's stock trades at a forward price-to-earnings (P/E) ratio of just 23, based on this year's analyst predictions, and a price/earnings-to-growth (PEG) ratio hovering around 0.4. Generally, stocks that present PEG ratios below 1 are classified as undervalued, which clearly places Nvidia on the clearance rack.
Despite its current valuation, Nvidia is poised for significant growth ahead. The company's graphic processing units (GPUs) are at the forefront of driving the artificial intelligence (AI) revolution, a market that shows no signs of slowing even amid a potential trade war. Moreover, reports indicate that semiconductors are reportedly exempt from the tariffs imposed on Taiwan, which serves as a primary manufacturing hub for these crucial components.
This exemption bodes well for Nvidia, as it is likely to maintain its momentum in the ongoing AI infrastructure buildout. Looking forward, Nvidia has projected that capital expenditures (capex) for data centers will soar to an astounding $1 trillion by 2028, spurred on by the three leading cloud computing companies that are flush with cash. These tech giants collectively plan to invest approximately $250 billion in capex related to AI infrastructure in the current year alone. Simultaneously, other tech companies are aggressively working to enhance their AI models, while major enterprises are increasingly leaning towards a hybrid cloud approach to AI.
Given its attractive valuation and the abundant opportunities that lie ahead, Nvidia emerges as a compelling stock to consider buying during this dip.
2. Amazon
As expected, Amazon (NASDAQ: AMZN), the world's largest e-commerce retailer, experienced a negative impact on its stock prices following the announcement of the new tariffs. A significant portion of the goods sold on Amazon's platform is sourced from third-party sellers who manufacture their products in countries like China. The imposition of tariffs on these goods may result in a sharp increase in prices, potentially slowing down sales, especially if the broader economy were to enter a recession.
Nevertheless, it is important to note that most products on the market are manufactured overseas, meaning the competitive landscape remains relatively unchanged for Amazon compared to its rivals. In the long run, the e-commerce sector continues to benefit from favorable trends, and Amazon has been effectively leveraging its higher-margin sponsored advertising business to drive earnings growth. Additionally, the company is enhancing its logistical capabilities and warehouse efficiencies through the application of AI technologies.
In light of these considerations, while the macroeconomic environment remains uncertain, the long-term prospects for Amazon and its growth strategies continue to appeal to investors.