Two AI Stocks Poised for a Big Second-Half Comeback

The first half of 2025 has been a rollercoaster for the stock market, with all three major indexes—S&P 500, Dow Jones Industrial Average, and Nasdaq Composite—experiencing significant fluctuations. Concerns over economic policies, such as President Donald Trump's import tariff plan, initially pushed these indexes into negative territory. However, positive trade deals and robust earnings reports have since helped them recover.

Despite this overall market rebound, certain growth stocks, particularly those in the artificial intelligence (AI) sector, have lagged behind. Two AI players, however, show strong potential for a significant second-half comeback.

Apple: A Strong Base and Services Growth

Apple (NASDAQ: AAPL) has faced challenges due to the tariff uncertainty surrounding its manufacturing base in China. While the temporary exemption for electronics products has provided some relief, the threat of a 25% tariff on imported iPhones remains. This uncertainty has pushed Apple's stock down by about 20% so far this year.

However, there are reasons to be optimistic about Apple's future. President Trump's efforts to bring manufacturing back to the U.S. are unlikely to harm the country's top companies, including Apple. Initial trade deals with the U.K. and China have shown flexibility, suggesting that a compromise with tech companies is possible.

Apple's strong financial position, with over $48 billion in cash and marketable securities, provides the resources needed to navigate these challenges. Moreover, the company's services division, which leverages its vast installed base of devices, has seen record revenues quarter after quarter. This growth is expected to continue as loyal Apple users increasingly rely on the company for data storage, digital entertainment, and more.

Nvidia: Leading the AI Revolution

Nvidia (NASDAQ: NVDA) has been at the forefront of the AI revolution, setting new all-time highs in recent months. However, the stock has not been immune to broader market concerns. Despite this, Nvidia's position in the AI market remains strong, and the company is well-positioned for continued growth.

Nvidia's GPUs are essential for AI and machine learning applications, and the company continues to innovate with new products and partnerships. The demand for high-performance computing solutions, driven by advancements in AI, is expected to drive Nvidia's stock higher in the second half of the year.

Positive Signs Ahead

Both Apple and Nvidia have strong fundamentals and are well-positioned to benefit from positive developments in the coming months. As trade tensions ease and the economy stabilizes, these companies are likely to see a significant rebound.

Investors should keep a close eye on these two AI stocks, as they could offer lucrative opportunities in the second half of 2025.