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AI Stocks Amid Market Challenges

You know those AI stocks that just seemed to tumble at the start of the year? Well, not all of them took a nosedive. Some actually managed to brush off the drama and come out swinging. I mean, seriously, while plenty of AI companies were kinda wobbly after what they’re calling 'Liberation Day' on April 2nd, a select few not only stood their ground but actually danced around the S&P 500’s performance!

Who’s Winning in the AI Race?

So, who’s really winning in this race? Let’s chat about a couple of gems that are not just surviving but thriving. Betting on these could be a smart move if you’re looking into AI stocks that have staying power.

Taiwan Semiconductor: The Royalty of Manufacturing

Take Taiwan Semiconductor or TSM for short. Not really a shocker there, right? These folks are basically the royalty of semiconductor manufacturing. With heavy-hitters like Samsung and Intel trying to catch up, TSM still leads with a whopping 68% slice of the third-party foundry market. Why? Because giants like Nvidia and Apple need TSM’s chips to get their AI tasks done. That’s big news, folks! And get this, a market research firm projects that the AI chip sector is going to explode with a growth rate of 29% all the way through 2030. That’s no small beans! TSM's got their game on, pulling in nearly $56 billion in the first half of 2025 alone. That's a 40% bump from last year. Plus, their costs only went up 24%, so yeah, their net income got a sweet 60% boost. Guess what? Their stock looks hot with a P/E ratio of 28 and it’s not slowing down.

Upstart Holdings: A Surprise Package

Now, let me spill about Upstart Holdings—talk about a surprise package! Despite a rollercoaster ride losing 97% during the 2022 bear market, they’ve turned the corner. They’ve got this cool tech that steps up the game in credit scoring, a fresh take not seen since 1989! Unlike the outdated FICO scores, Upstart uses AI to scoop up gems missed by others, and they’re only getting started, focusing now on bigger loan types like auto and home equity. Despite a shaky start this year with a meager $3.1 million profit, their revenue is up 59% from last year. Yep, that’s massive! Even though the price-to-earnings ratio took a hit, their forward P/E of 39 is nothing to sneeze at given the upward revenue trajectory. They're setting up to be a solid pick for those ready to ride the AI wave.

Meta Platforms: The Social Media Behemoth

And let’s not overlook Meta Platforms—yeah, the social media behemoth. Over 42% of the planet is on their platforms daily. While user growth has tapered to about 6%, they’re doubling down on AI. With billions in capex for 2025, they’re laser-focused on expanding their data centers and tech capabilities. The first half of 2025 alone saw a cool $90 billion in revenue, a 19% increase year-over-year. Not too shabby, right? Their profits soared to $35 billion, up 36%, and their stock's P/E ratio sits comfy at 28 given all this growth.

Conclusion: Smart Moves in AI Stocks