Tariff Fear, AI Opportunity: Microsoft, Palantir, Meta
It’s a cloud-AI world, and the companies capitalizing on this will dominate in market performance for years to come. What’s more, tariff fear has created more attractive buying opportunities as this turmoil too shall pass and stocks are eventually going higher (some of them much higher). This report discusses 3 top AI growth stocks that investors may want to consider.
Palantir (PLTR)
Palantir is a dominant AI juggernaut. It has been growing rapidly, and has tons of room too keep growing—fast! In fact, if there was a poster-child for the AI megatrend it would be Palantir—with a 30% revenue growth rate and a colorful CEO, Alex Karp, who knows precisely how to push buttons and fire up his troops of investors.
Wall Street, however, HATES Palantir because its valuation is so much ahead of it business, now trading at 99x sales (honestly, this is way too high for any stock, unless it can grow at over 30% for the next 10 years, and even that doesn’t leave much room for price upside).
Nonetheless, the business is an amazing AI beneficiary. We have owned this one in the past (and enjoyed a run in price from $14 per share to over $100, but it’s simply too expensive for us now—even if we do absolutely love the businesses.
Microsoft (MSFT)
Simply put, Microsoft is one of the greatest (or perhaps the greatest) stock in the world. It does NOT get the attention of flashier names like Nvidia, Meta Platforms or Tesla, but Microsoft provides something else—an amazing high-growth cloud-and-AI megatrend beneficiary with fortress financial strength (AAA credit rating), an amazing CEO and safety in down markets plus massive upside in bull markets.
Microsoft is a leader in cloud computing and AI software, has a double-digit sales growth rate, and recently beat earnings expectations again (a signal that the cloud and AI megatrends are alive and well). We’d pound the table even harder about this stock, but it’s up over 23% in the last few weeks, and there are other near-term margin of safety stocks worth considering too.
Either way, Microsoft is arguably the best single long-term, publicly-traded business in the world (but we don’t invest in single stocks alone—we invest in a portfolio of them, and Microsoft is a significant position in ours).
Meta (META)
I don’t care what anyone says, Meta CEO, Mark Zuckerberg, is an all-time creepy geek, and for better or worse—he is solidly monetizing people’s social media addictions. I have been long these shares since 2012, and watched Zuck (who originally created Facebook to creep on college girls at Harvard) expand his original platform to more users and then to mobile, and then grew to Instagram and WhatsApp (which, by the way, records all your calls and plugs them into AI) and recently spend massively on Nvidia servers to stay ahead of his peers in the AI arms race. Again, this CEO creeps me out, but he is really smart and appears just as determined to make Meta a bigger, better and an even more dominant company.
With ongoing double-digit revenue growth, a “strong buy” rating from Wall Street and a compelling 1.2x forward PEG ratio (price-to-earnings vs growth) Meta remains a very attractive long-term growth stock (it also pays a small growing dividend now too) set to continue benefiting from AI and its highly determined creepy CEO.
Not to mention, Meta beat earnings this quarter and provided guidance in line with street expectations (i.e. more healthy double-digit growth ahead). Long Meta.
More Top Growth Stocks…
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The Bottom Line: Fear Creates Opportunity
The recent market declines have been driven by fearful investors dumping shares on tariff concerns (not to mention, the market was due for a bit of a healthy selloff following extremely strong performance in 2023 and 2024). Unquestionably, the tariffs will have real (negative) impacts on the near and mid-term economy, especially depending on how draconian they are and how long they last before being modified.
However, this too shall pass. And the global AI megatrend is going to move forward. So is the total US (and global) economy for that matter, and stocks are eventually going higher.
Rather than panicking and selling, investors should use this year’s fear to take advantage of top opportunities (such as those described in this report) so they can benefit from the eventual rebound (the idea is to buy low) followed by continuing ongoing financial strength for the US economy and the stocks described in this report in particular.