Tariffs and geopolitics have taken center stage in 2025, creating major headwinds for tech and AI stocks. Some of last year’s biggest winners, like Vertiv and Nvidia have seen sharp declines, down 50% and 30% respectively from recent highs.

Much of the recent market uncertainty has centered around today’s so-called "Liberation Day," when President Trump is expected to announce a sweeping and still unknown package of new trade tariffs. Despite the looming announcement, US stock indexes have shown surprising strength in recent days, bouncing back after a sharp month-long selloff.

With valuations on some of the leading AI and tech names now looking far more reasonable, today could turn out to be a "buy the news" moment. If the tariff measures are less severe than feared and we can finally move past the uncertainty, this may mark a compelling entry point for top-tier AI stocks. Here I will share what I think are the three most compelling AI stocks in the market today – Nvidia (NVDA), Vertiv (VRT), and Palantir Technologies (PLTR).

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Palantir Technologies: Leading Applied AI Stock

Palantir Technologies is a unique player in the AI space, operating in a class of its own. The company specializes in applied artificial intelligence and advanced data analytics, with deep entrenchment across both government and commercial sectors. Its software platforms—Gotham, Foundry, and Apollo—are used for mission-critical operations in defense, healthcare, energy, and finance, giving it a competitive moat and very few true rivals.

Palantir is delivering impressive fundamentals, with sales and earnings both expected to grow more than 30% in 2025, followed by 25% growth in 2026. This positions the company as one of the fastest-growing names in the AI sector.

Despite broader weakness in tech and AI stocks, Palantir has held up well—shares are up 15% year-to-date, making it one of the few AI leaders still in positive territory in 2025. The stock does carry a premium valuation, currently trading at 150x forward earnings. However, given its growth trajectory, strong positioning, and sticky customer base, many investors are willing to pay up for Palantir’s long-term potential.

I am keeping a close eye on this broad technical pattern forming on PLTR stock. If the price can trade above $90, it may signal further upside. Alternatively, below $80 and there may be more downside.

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Vertiv: Top Stock for Data Center Service Providers

Vertiv is a leading provider of critical infrastructure and services for data centers, communication networks, and commercial and industrial environments. The company plays a vital role in supporting the backbone of the digital economy by delivering power, cooling, and IT management solutions that keep data centers running efficiently and reliably. As demand for AI and cloud computing infrastructure grows, Vertiv stands out as a key enabler of that expansion.

The company is expected to deliver strong fundamentals, with sales projected to grow 15% this year and 14% next year. Even more impressive is its long-term earnings outlook, with EPS expected to grow at a 27% annual rate over the next three to five years, among the highest in its category.

Despite this robust growth profile, Vertiv shares trade at just 21x forward earnings, below both the current broad market average and the stock’s own five-year median of 23.1x. The stock also boasts a PEG ratio of 0.78, reflecting an attractive valuation relative to its growth potential.

Vertiv remains one of the top ways to invest in the data center buildout and ongoing digital infrastructure boom.

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Nvidia: The King of AI Stocks

Nvidia remains the undisputed leader of the AI revolution, serving as the go-to stock for investors looking to gain direct exposure to the booming artificial intelligence and data center buildout. The company’s GPUs are widely regarded as the gold standard for AI training and inference, maintaining a multi-year lead over the competition in both performance and software ecosystem integration. With demand coming from nearly every corner of the AI economy—from cloud hyperscalers to enterprise AI applications—Nvidia is at the very center of this massive structural shift.

The growth outlook is as impressive as ever. Sales are expected to surge 52% this year, followed by another 23% next year. Long-term earnings per share are forecast to grow at a robust 26% annually over the next three to five years, reflecting Nvidia’s dominant position and expanding market opportunity.

Despite its reputation as a richly valued stock, Nvidia currently trades at just 25x forward earnings—well below its 10-year median of 45x. Given the strength of its fundamentals, market leadership, and strategic importance to the AI ecosystem, that valuation appears extremely reasonable by historical standards.

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Should Investors Buy Shares in PLTR, NVDA and VRT?

Just the other day, OpenAI CEO Sam Altman revealed that at one point this week the company was onboarding users at a staggering rate of 1 million per hour. So fast, in fact, that their infrastructure couldn’t keep up. That single data point tells you everything you need to know about the explosive, real-world demand for artificial intelligence technology.

While media narratives around AI have recently turned more cautious, partially in response to broad market weakness and macro uncertainty, the underlying growth story remains intact. AI adoption is accelerating, infrastructure is scaling, and enterprise demand continues to grow.

Against that backdrop, Vertiv, Palantir Technologies, and Nvidia stand out as three of the most compelling ways to gain exposure to the next wave of AI-driven innovation. Each company plays a distinct and critical role in the ecosystem—from data center hardware to applied AI software to the high-performance chips powering it all.

For long-term investors, today’s volatility may offer a rare opportunity to build or add to positions in these leaders at more reasonable valuations—before the next leg of the AI cycle begins.

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This article originally published on Zacks Investment Research (zacks.com).

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