AI Stocks to Watch: Nvidia, AMD, and Tesla Poised for Strong Second-Half Performance

Nvidia, Advanced Micro Devices, and Tesla have historically done well in the second half of the year, with Nvidia generating positive returns in 8 of the past 10 years and averaging a 33% second-half return. AMD has generated positive returns in 7 of the past 10 years, with an average second-half return of 31%. Both stocks have risen 21% this year and are trading at high valuations, but may still rally higher if trade worries ease. Tesla has traditionally been volatile, but has generated positive returns in 6 of the past 10 years.

Title: Nvidia, AMD, and Tesla: Second-Half Performance and Valuation

Nvidia, Advanced Micro Devices (AMD), and Tesla have historically shown strong performance during the second half of the year. Nvidia has generated positive returns in 8 out of the past 10 years, averaging a 33% return. AMD has generated positive returns in 7 out of the past 10 years, with an average second-half return of 31%. Both stocks have risen by 21% this year and are trading at high valuations, but may still rally higher if trade worries ease. Tesla, known for its volatility, has generated positive returns in 6 out of the past 10 years.

Nvidia briefly reached a market capitalization of $4 trillion on Wednesday, making it the first company in the world to reach this milestone. This achievement underscores the company's dominance in the AI-chip sector and its strategic importance to investors [1].

AMD has been gaining traction, particularly in the gaming and data center markets. Its strong performance in the first half of the year has set a positive tone for the second half. The company's recent partnerships and technological advancements have bolstered investor confidence [2].

Tesla, despite its volatility, has shown resilience. The upcoming Q2 earnings report will be closely watched by investors, as the company faces ongoing production and demand challenges. Analysts forecast adjusted EPS of $0.30, down about 29% from the year-ago quarter. However, the company's mixed surprise history indicates that it may beat or miss estimates, setting the tone for the second half [3].

The second-quarter corporate earnings season is expected to start next week, with consensus forecasts for annual S&P 500 profit growth just under 6%. Despite this, the S&P 500 SPX is up about 6% for the year so far, with the Nasdaq IXIC hitting another new peak on Wednesday [1].

The U.S. and European Union negotiators are moving closer to a trade deal, which could ease some of the trade worries currently affecting the market. The planned 50% tariff on copper imports may turn out to be a significant own goal for the U.S. in its ongoing trade war with the rest of the world [1].

Investors are watching the Federal Reserve's next meeting for any indication of interest rate cuts. Fed futures expect a near 80% chance of a cut in September and two cuts are fully priced by the end of the year. This could provide additional support to the market, particularly for tech stocks like Nvidia, AMD, and Tesla [1].

In conclusion, Nvidia, AMD, and Tesla have shown strong historical performance during the second half of the year. With trade negotiations moving forward and potential interest rate cuts, these companies may continue to perform well. However, investors should remain vigilant to any developments that could impact their valuations.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3SU108:0-4-trillion-nvidia-obscures-new-tariffs/
[2] https://ca.finance.yahoo.com/news/tesla-q2-earnings-preview-expect-124538996.html
[3] https://www.teslarati.com/two-tesla-bulls-differing-insights-elon-musk-board-politics/