Top Tech Stocks to Consider Amid Eased Trade Tensions

As trade tensions between the U.S. and China begin to settle, investors may find opportunities in leading tech stocks. This analysis explores Nvidia, AMD, and TSMC as potential buys.

Date: 16-05-2025

AI Rating: 7

**Market Context**: With the easing of U.S.-China trade tensions, the technology sector is poised for potential growth. Strong demand in AI infrastructure could drive stock prices higher in the coming months.

**Nvidia**: The company continues to dominate the GPU market with over 80% market share. Recent forecasts suggest that AI-related data center spending could reach $250 billion this year alone, providing significant revenue opportunities for Nvidia. Furthermore, the company's forward P/E ratio of 28 indicates that while the stock is priced high, it reflects strong growth expectations. Investors might view Nvidia favorably given its strong position and projected growth, suggesting a solid outlook for revenue growth.

**Advanced Micro Devices (AMD)**: Although not a leader like Nvidia in GPU technology, AMD is making advancements in the AI inference market, which is anticipated to expand significantly. The fact that major cloud providers are increasingly utilizing AMD's products indicates not only strong demand but also potential revenue growth. AMD's forward P/E ratio of 27.5 shows that it remains competitively priced relative to its growth prospects.

**Taiwan Semiconductor Manufacturing Company (TSMC)**: As a leading semiconductor manufacturer, TSMC stands to gain from the increased demand for semiconductors and GPUs driven by AI-related investments. The ongoing expansion of manufacturing capacity will likely enhance the company's revenue streams. TSMC's forward P/E of 20.5 and PEG of 0.62 suggest that the stock price may be undervalued compared to its growth potential.

**Investor Takeaway**: The overall sentiment surrounding these companies is favorable. Nvidia, AMD, and TSMC appear to be well-positioned to capitalize on the burgeoning AI market. Consequently, the positive outlook on revenue growth and market share could lead to upward price movements for their stocks in the near term.

Stocks: NVDA AMD TSM