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President Donald Trump's tariffs have spooked the stock market. It is unclear what comes next in the trade war with China and other countries versus the U.S., with potentially large effects on global supply chains.
This does not mean you should shy away from investing in 2025. In fact, the best move will likely be to do the opposite and lean in while others are leaning out -- with technology stocks especially. The market is fearful over how the trade war will affect the profits of large tech players in 2025, which is providing a buying opportunity for investors with an eye on the long term.
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Here are two technology stocks you can buy today to set yourself up for life.
The world's supplier of computer chips
Semiconductors are strategically important for the U.S. and China, as well as other nations. Without them, most of the global economy would cease to function optimally. One company is the backbone of this industry: Taiwan Semiconductor Manufacturing (NYSE: TSM), otherwise known as TSMC.
TSMC builds computer chips for companies like Nvidia, Amazon (NASDAQ: AMZN), and Alphabet. It has factories in Taiwan and the U.S., with plans to build more in the coming years.
The company just announced an expansion in the U.S., with an updated plan to add $100 billion in spending in the country. Nations want robust semiconductor supply chains, with the computer chips vital for cloud computing, artificial intelligence (AI), and electric vehicles.
AI and cloud computing are where TSMC makes most of its money, though. Last quarter, 59% of revenue came from high performance computing (HPC), growing 7% quarter over quarter.
The AI market is going like gangbusters at the moment, meaning we should get even more growth from this segment in the coming quarters. In dollar terms, TSMC expects revenue to grow by more than 20% year over year in 2025.
Right now, you can buy shares at a forward price-to-earnings ratio (P/E) of 16.5. This looks cheap for a company with a strong industry tailwind and a dominant position in manufacturing semiconductors.
Amazon's cheapest multiple ever
Another tech company with a cheap stock is a customer of TSMC: Amazon. Its stock is getting roughed up because of tariffs, but the business is well diversified and poised to succeed over the long haul. Tariffs will hurt Amazon's e-commerce sellers due to the exposure they have to Chinese manufacturing.
But the company is typically just a marketplace for goods, offering its fulfillment network, advertising, and Prime subscription services for sellers and buyers. These services will do just fine no matter if goods are sourced from China, Vietnam, or North America. It may be a bumpy road due to tariffs, but Amazon's roughly $400 billion in North American retail revenue should keep growing over the long term.