2 Artificial Intelligence (AI) Stocks That Could Soar in the Second Half of 2025

The recent tariff-driven market correction has significantly impacted AI stocks, presenting potential rebound opportunities for Advanced Micro Devices (AMD) and The Trade Desk (TTD) in the second half of 2025. AMD, down over 60% due to competitive pressures and sector declines, is poised for recovery with new AI accelerator releases, stabilizing segments, and an attractive forward P/E of 19. The Trade Desk, having fallen 65% post-revenue miss, now offers a value proposition with a forward P/E of 28, sustained revenue growth, and a more conservative outlook, suggesting reduced downside risk. Both companies are highlighted as potential recovery plays given their current valuations and specific operational catalysts.

Analysis

A tariff-driven market correction has severely impacted AI-related equities, creating potential rebound opportunities in the second half of 2025 for companies with resilient fundamentals. Advanced Micro Devices (AMD), despite a stock decline of over 60% in the last 13 months due to competitive pressures and weakness in its gaming and embedded segments, shows potential for a turnaround. This is supported by an acceleration in forecast revenue growth from 14% in 2024 to 22% for the current year, a forward-looking product roadmap including the MI350 and MI400 AI accelerators, and a considerably lower forward P/E ratio of 19. Similarly, The Trade Desk (TTD) has seen its stock fall approximately 65% from its peak after missing a revenue estimate. However, the company's valuation has contracted significantly, with its P/E ratio falling from over 225 to 64 and its forward P/E now at 28. TTD continues to demonstrate robust underlying growth, including a 22% year-over-year revenue increase even in its disappointing quarter. The company's conservative Q1 revenue forecast of 17% growth suggests that a potential slowdown is now priced in, reducing the risk of another negative surprise.

Key Decisions for Investors

• Investors should evaluate the significant valuation reset in both AMD and TTD, as the recent sell-off has brought their forward P/E multiples to 19 and 28, respectively, which may present an attractive entry point relative to their growth prospects.
• For AMD, the upcoming 'Advancing AI 2025' livestream event is a key near-term catalyst that could validate its AI strategy and revive investor confidence, making it a critical event to monitor for a potential shift in sentiment.
• The Trade Desk's conservative Q1 revenue guidance, while indicating a growth slowdown, may now be fully priced into the stock, potentially de-risking it from further guidance-related declines and offering a more stable outlook.
• Despite the optimistic company-specific outlooks, investors must remain cognizant that the recovery thesis is partly contingent on stabilizing macro conditions, particularly regarding the tariff situation that initiated the broader market correction.