When President Trump announced the imposition of worldwide tariffs last month, the reaction from investors was swift and severe. Each of the major market indexes fell into
correction territory
— characterized by a decrease of over 10%. The selloff was driven primarily by the
Nasdaq Composite
(NASDAQINDEX: ^IXIC)
, which briefly entered a
bear market
characterized by a decrease of 20% from its peak recently.
Experienced investors understand that market declines do not differentiate between quality and poor stocks; they affect both. This presents an occasion for purchasing high-quality shares at reduced rates.
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I viewed the downturn as an opportunity and pounced, deploying about half my available cash to “stock” up on some of my highest-conviction stocks. Here are five that I bought.
1. Nvidia
With the onset of the artificial intelligence (AI) revolution in early 2023,
Nvidia
(NASDAQ: NVDA)
cemented its place as one of the most important technology companies in a generation. The company’s graphics processing units (GPUs) were already the industry standard for AI and quickly became the go-to to upgrade data centers to meet the rigorous demands of
generative AI
.
Fears regarding slowing AI acceleration, export restrictions to China, and the impact of tariffs hit the chipmaker hard, sending its stock down roughly 37%.
Yet I viewed the selling as overdone. The full adoption of AI is expected to take place over years, if not decades, and Nvidia is well-positioned to profit from this secular tailwind. In its fiscal 2025 fourth quarter (ended Jan. 26), revenue of $39 billion grew 78% year over year, while earnings per share (EPS) surged 82%. These results suggest that AI still has room to run.
Ultimately, with a forward P/E ratio of merely 31, Nvidia appears reasonably valued, especially considering its strong growth prospects.
2. Broadcom
If NVIDIA reigns as the monarch of AI,
Broadcom
(NASDAQ: AVGO)
might as well be crowned the queen. The firm provides an extensive range of semiconductors along with infrastructure software solutions that drive technological advancements within sectors such as cable, mobile communications, broadband, and data centers. Consequently, this positions the company advantageously to thrive amidst the continuous surge of digital transformation. According to Broadcom’s estimations, “99% of all Internet traffic passes through some form of Broadcom technology.”
However, it’s the
data center
The opportunity that stands out is where most AI processing happens, making Broadcom a key supplier of AI infrastructure.
The outcomes speak volumes. For its fiscal year 2025 first quarter (as of February 2), Broadcom saw revenues surge by 25%, totaling $15 billion, with adjusted earnings per share increasing by 45% to reach $1.60.
Even though Broadcom is presently priced at 35 times future earnings, the company’s reliable history of expansion and significant prospects on the horizon justify considering it as a purchase.
3. Amazon
Given that Amazon is the biggest online shopping platform globally, the tariff declaration had an impact on them.
Amazon
(NASDAQ: AMZN)
, causing its stock price to drop by almost 31%. Nonetheless, historical evidence demonstrates that the company has proven highly skilled at adjusting its operations to accommodate shifting macroeconomic and geopolitical conditions, all while setting itself up for continued prosperity. Recently, Amazon Web Services (AWS) transitioning into a focal point for artificial intelligence, along with the resurgence in its cloud services growth, underscores this adaptability and agility.
It’s important to highlight that although digital retail made up 81% of Amazon’s revenue, AWS contributes to 63% of their profit, and this sector probably won’t be affected by tariffs. Additionally, the wide range of sellers on Amazon ensures customers have numerous choices available — regardless of whether the interim removal of reciprocal tariffs comes to an end.
Ultimately, better economic circumstances might prove beneficial for Amazon. Furthermore, valuing the company at three times next year’s sales seems reasonable given its numerous opportunities for growth.
4. Shopify
The threat of tariffs took a toll on many stocks, but
Shopify
(NASDAQ: SHOP)
was hit harder than most. From the announcement of North American tariffs in mid-February to early April, the e-commerce platform’s stock price plummeted by more than 40%.
Many of Shopify’s merchants fell under the so-called “de minimus exemption,” which allowed goods worth $800 or less to be imported duty-free. That exemption was suspended early last month, a move investors feared would wreak havoc on many of Shopify’s smaller merchants.
Earlier this month, Shopify unveiled tariffguide.ai to counter that threat. This AI-powered tool provides tariff rates based on a product description and country of origin, enabling merchants to make data-driven decisions to adjust their product pipelines in minutes rather than days.
Even with the introduction of new tariffs, both small and large enterprises kept signing up for Shopify. In the initial three months, the company’s earnings climbed to $2.36 billion, marking a 27% increase from the previous year, whereas its operational profit more than doubled, surging by 136%.
Shopify’s flexibility has been advantageous for the company, allowing it to adapt quickly even amid intricate economic conditions. At present, the stock trades at 15 times its revenue. Although this may appear costly, it remains significantly lower than its 10-year average multiplier of 22.
5. The Trade Desk
As it enters its fourth quarter,
The Trade Desk
(NASDAQ: TTD)
had an unblemished track record of meeting or exceeding its own guidance, and investors rewarded the company with a high valuation. That came to a screeching halt earlier this year when The Trade Desk not only missed Wall Street’s expectations but its own forecast, and the stock cratered.
The decline was exacerbated by the tariff-induced market swoon that followed. In fact, between early December and early April, The Trade Desk stock shed 67% of its value.
One mark of a good management team is owning up to its mistakes and taking steps to correct them — and that’s precisely what The Trade Desk did. During the company’s fourth-quarter earnings call, CEO Jeff Green said, “I want to acknowledge up front that for the first time in 33 quarters as a public company, we fell short of our own expectations.” He went on to cite a “series of small execution missteps” and outlined management’s plan to address those shortfalls.
Given the company’s
nearly
flawless track record, this seemed like too good an opportunity to pass up, so I added to my position. It turns out my faith in The Trade Desk’s management team was justified. In the first quarter, growth reaccelerated, as revenue of $616 million climbed 25%, and adjusted EPS jumped 27%.
The Trade Desk is also reasonably priced, with a
price/earnings-to-growth (PEG) ratio
of 0.92, when any number less than 1 suggests an undervalued stock.
Don’t let this second chance for a possibly profitable opportunity slip away.
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Nvidia:
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Apple:
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you’d have $40,106
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*Stock Advisor returns as of May 12, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
Danny Vena
holds stakes in Amazon, Broadcom, Nvidia, Shopify, and The Trade Desk. The Motley Fool owns shares of and endorses Amazon, Nvidia, Shopify, and The Trade Desk. Additionally, The Motley Fool recommends Broadcom. The Motley Fool has a
disclosure policy
.
