2 Magnificent Artificial Intelligence (AI) Stocks to Consider Buying Before April 30

Core Viewpoint - The upcoming earnings reports for Microsoft and Meta are anticipated to be closely watched, with both companies facing potential challenges due to new tariff policies impacting their AI infrastructure investments [1][2][4]. Group 1: Company Performance and Market Conditions - As of April 22, 2025, all "Magnificent Seven" stocks, including Microsoft and Meta, have experienced negative price returns, with Microsoft down 13% and Meta down 14.5% [1]. - Microsoft is currently trading at a forward price-to-earnings (P/E) ratio of 28, slightly below its three-year average, indicating a potential buying opportunity [9]. - Meta's stock is trading in line with its three-year average forward P/E, suggesting that investors may not be fully valuing its recent advancements in AI [17]. Group 2: Potential Challenges - Both Microsoft and Meta could face increased costs related to their AI infrastructure due to complex tariff policies, which may lead to a scaling back of spending in critical areas like cloud computing and cybersecurity [4][5][6]. - A slowdown in revenue growth is anticipated for both companies, but it is not expected to be detrimental to their overall business operations [14]. Group 3: Long-term Outlook - Despite short-term challenges, Microsoft is viewed as relatively insulated from economic slowdowns due to its diversified ecosystem, which includes personal computing, social media, and gaming [12]. - Meta's strong position with platforms like Facebook, WhatsApp, and Instagram allows it to continue monetizing its user base, especially as AI opens new consumer market opportunities [15]. - Investors are encouraged to consider long-term potential, as tariff policies may change and economic cycles are not permanent [18][19].