In 2025, AI stocks faced a downturn despite ongoing demand, primarily due to tariff threats from the Trump Administration and concerns over economic recession. However, major tech leaders like Alphabet and Amazon reaffirmed their substantial AI investment plans, with Alphabet announcing $75 billion for AI data centers and Amazon’s CEO highlighting rapid AI revenue growth. As competition increases, particularly with efforts to lower AI costs, Nvidia, a key player in AI hardware, may face challenges despite its strong market position and demand for its chips.