3 AI Stocks Thriving in a Fractured World: AMD, Broadcom, and Oracle Navigate Trade Tensions to Fuel Growth

The global tech sector faces a paradox: surging demand for artificial intelligence (AI) infrastructure collides with escalating trade tensions and geopolitical fragmentation. Yet, three companies—AMD, Broadcom, and Oracle—have positioned themselves to capitalize on AI's growth while navigating these headwinds. Their strategies blend technological innovation, supply chain agility, and strategic partnerships, making them compelling investment candidates.

AMD: Pioneering AI Hardware Amid Manufacturing Shifts

AMD's 2025 strategy is a masterclass in balancing ambition with pragmatism. Its upcoming MI400 series GPUs, leveraging silicon photonics from Enosemi, aim to dominate AI training and inference by 2026. Current chips like the MI350X, despite facing export restrictions to China, are finding traction in hyperscaler data centers, such as Oracle's recent multi-billion-dollar cloud cluster deployment.

Supply Chain Ingenuity: To sidestep China's retaliatory tariffs, AMD shifted production of its Turin processors to TSMC's Arizona plant, qualifying for U.S. export exemptions. Partnerships in Vietnam and Thailand further diversify its manufacturing base. The $1.5B acquisition of ZT Systems, enabling co-design of rack-scale systems, underscores AMD's vertical integration push.

Software as a Moat: AMD's ROCm 6.4 software ecosystem now supports over 150 server platforms, rivaling Nvidia's CUDA dominance. While export curbs trimmed $1.5B in annual revenue, Q1 2025 data-center sales surged 52% year-over-year, boosting overall revenue to $7.4B (up 27% YoY). Gross margins held firm at 45%, despite a $800M inventory write-down.

Investment Takeaway: AMD's long-term bets—such as 2nm Venice chips and its 150+ certified server platforms—suggest it will remain a leader in AI infrastructure. The stock's undervaluation relative to peers and its resilience amid trade headwinds make it a buy for investors with a 3–5 year horizon.

Broadcom: ASIC Dominance and the “Full Stack” Advantage

Broadcom's AI strategy hinges on its ASICs, which now command a staggering 70% market share in AI chips. These specialized chips, favored by hyperscalers for their cost efficiency (75% cheaper than GPUs), are increasingly critical as AI shifts toward inference workloads. The Tomahawk 6 networking chip, paired with VMware's cloud tools, creates a “full stack” offering that locks in long-term contracts with clients like Google and Meta.

Financial Momentum: AI revenue hit $4.4B in Q2 2025 (+46% YoY), with full-year projections nearing $20B. Broadcom's 70% gross margins and 57% operating margins defy cyclical concerns, supported by multiyear hyperscaler deals.

Trade Risks and Mitigations: While $10B in annual China revenue leaves exposure to geopolitical friction, Broadcom's hyperscaler contracts provide stability. Competitors like NVIDIA's Blackwell ASIC pose threats, but Broadcom's scale and integration with networking gear (contributing 17% of AI revenue) cement its edge.

Investment Takeaway: Broadcom's valuation (45x trailing P/E) is rich, but its AI trajectory justifies a “hold” for long-term investors. Analysts see a $450 price target by 2027, assuming 60% YoY AI growth through 2027. However, investors should monitor margin pressures and hyperscaler concentration risks.

Oracle: The Enterprise AI Play with a Defense Twist

Oracle's 2025 pivot to enterprise AI and national security markets is bold. Its integration of xAI's Grok models into Oracle Cloud Infrastructure (OCI) positions it to serve regulated sectors like defense and finance. The Oracle Defense Ecosystem, launched in June 2025, targets $1.5B–$2B in annual revenue by 2026, leveraging OCI's sovereign cloud offerings for classified workloads.

Supply Chain Smarts: Oracle's Fusion Cloud Supply Chain tools automate compliance with tariffs and export controls, a critical service in today's fractured trade environment. These tools, combined with AI-driven product classification, reduce costs for multinational firms.

Financial Proof: OCI's YoY revenue growth hit 48% in Q4 2025, with a 3.5% cloud market share. The Grok integration aims to push this to 4.5% by 2026, capitalizing on the $150B AI cloud market.

Investment Takeaway: Oracle's stock is undervalued relative to its AI/cloud growth, trading at just 15x forward earnings. Its defense and compliance plays offer resilience against trade volatility, making it a “buy” for investors seeking stability alongside innovation.

Conclusion: Why These Stocks Win in a Divided World

AMD, Broadcom, and Oracle exemplify the new tech paradigm: specialization meets geopolitical agility. AMD's hardware/software stack and supply chain shifts ensure it stays ahead of AI training demands. Broadcom's ASIC dominance and networking synergies lock in hyperscaler spending. Oracle's defense and compliance plays open doors in restricted markets.

While trade tensions remain a risk, these companies are engineering solutions—whether via U.S. manufacturing, sovereign clouds, or multiyear contracts—to turn fragmentation into opportunity. For investors, their 2025 strategies signal a clear path to outperforming a choppy macro environment.

Final Recommendation:
- AMD (Hold/Long-Term Buy): Strongest for those betting on AI's long tail.
- Broadcom (Hold): A premium play, but growth justifies it over 5+ years.
- Oracle (Buy): Underappreciated cloud and defense growth at a reasonable price.

In a world where AI and trade tensions collide, these three stocks are the winners building bridges between them.