The AI Investing Pulse

April 3rd, 2025

In this Week’s Edition:

1. Analysis - Trump’s New Tariffs Shake Tech: What Investors Need to Know

2. Stock Ideas - 3 AI Stocks that Could Rebound in April

3. News - 7 Stocks to Benefit from The Next Major AI Wave

4. Startups - 33 Impactful AI Startups to Watch in 2025

5. Trends - The Next Frontier in Tech: AI and Quantum Convergence

6. Other News - OpenAi Plans to Raise $40 Billion to Revolutionise AI Tools

Trump’s New Tariffs Shake Tech: What Investors Need to Know

On 2 April 2025, President Donald Trump announced a sweeping set of new trade tariffs, applying to all international trading partners. These include:

• 34% on Chinese goods

• 24% on Japanese imports

• 20% on European Union products

Framed by the administration as a “reciprocal trade strategy” and referred to as “Liberation Day,” the move is designed to promote domestic manufacturing. But as experts warn, the near-term consequences may be felt most acutely in the technology and AI sectors.

This week, we round up key expert views and initial market reaction to help understand what’s happening, what it could mean for growth, and where the risks may lie in the weeks ahead.

📉 Market Reaction: AI & Semiconductor Stocks Hit Hard

The announcement triggered immediate and widespread volatility across global markets. Investors pulled back from risk assets and moved into safe havens such as government bonds and gold, signalling broad-based concern about the impact of trade friction on global growth.

• Dow Jones futures fell nearly 1,000 points

• Nasdaq 100 futures dropped over 4.3%

• S&P 500 futures declined by 3.5%

In equities, technology and semiconductor stocks were hardest hit. According to Investor’s Business Daily, high-profile names with global supply chain exposure saw sharp selloffs in after-hours trading:

• Apple, Nvidia, Tesla, and Palantir dropped by 5–7%

• Taiwan Semiconductor (TSMC) also fell on concerns about cross-border chip manufacturing costs

Many of these companies are central to the AI and advanced computing industries, and rely on complex global manufacturing ecosystems that may now face higher import costs, shipping delays, and operational uncertainty.

🧠 What the Experts Are Saying

Wedbush Securities analysts characterized the tariffs as:

“Worse than the worst case scenario that Wall Street was fearing. Tech stocks will clearly be under major pressure on this announcement as the worries about demand destruction, supply chains, and especially the China/Taiwan piece of the tariffs.”

Tai Hui, APAC Chief Market Strategist at J.P. Morgan Asset Management:

“If these tariffs persist, they could materially impact inflation… U.S. consumers may cut back on spending due to pricier imports, and businesses might delay capital expenditures amid uncertainty.”

Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital:

“Our rough calculation is that the 2nd April announcement will take the U.S. average tariff rate to above levels seen in the 1930s after the Smoot-Hawley tariffs, which will in turn add to the risk of a U.S. recession. The risk of a U.S. recession is probably now around 40%, and global growth could be pushed towards 2% (from around 3% currently) depending on how significant retaliation is and how countries like China respond with policy stimulus.”

⚠️ Implications for AI and Technology

• Sort Term

  • Increased costs for hardware used in AI infrastructure

  • Delays in chip procurement for data centres and model training

  • Pressure on earnings guidance for AI-exposed firms like Nvidia, ServiceNow, Palantir, and Credo

• Medium Term

  • Potential retaliation from trade partners

  • Reduced corporate investment due to policy uncertainty

  • Supply chain restructuring or onshoring attempts, especially in semiconductors

🧭 What to Watch Next

The tariff announcement marks a major inflection point for global trade policy. Tech and AI markets are likely to remain volatile as the broader consequences unfold. Over the coming weeks, key areas to monitor include:

• Earnings season updates from major tech and AI firms

• Policy responses from the EU, China, and Japan—including possible countermeasures

• Supply chain strategy shifts, particularly in semiconductor sourcing

• Inflation data and consumer sentiment as higher import costs begin to take effect

The long-term AI growth story remains strong but how and where that growth plays out may shift under these new trade conditions.

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance. Data sources: Finviz, Stock Analysis and Yahoo Finance.}

TOP AI STOCKS

TOP AI ETFs

AI STOCKS IDEAS 

3 AI Stocks that Could Rebound in April - The Motley Fool

Credo Technology: Among the Best Mid Cap AI Stocks - Yahoo Finance

AI STOCKS & ETFs NEWS 

These 7 Stocks will Benefit from the Next Major AI Wave - Investing.com - Key companies in the Consumer AI sector, including Amazon and Microsoft, are poised for significant growth, driven by substantial investments in AI and a projected market expansion to over $100 billion by 2030.

Wall Street Braces for New Tariffs and AI Stock Check  - Finimize - Market volatility stems from new tariffs, particularly on auto imports, impacting major indices and contributing to instability in AI stocks. Investors are seeking safety in gold amid these economic uncertainties. 

Insights from Morgan Stanley's AI Trends and Monetisation Discussions - Yahoo Finance - Key themes from Morgan Stanley’s recent TMT Conference highlight advancements in AI reasoning, cloud migration, and the monetization of AI technologies as companies seek improved performance and profitability.

AI STARTUPS

33 Impactful AI Startups to Watch in 2025  - Causeartist - Innovative AI startups are revolutionising sectors such as healthcare, education, and sustainability, showcasing the potential for social impact and global solutions. 

Finnish Quantum Startup IQM in Funding in Talks to Raise over €200M - Bloomberg -  IQM is seeking over $216 million in funding to enhance its superconducting quantum computing technology for various applications, following its previous €128 million round in 2022.

Significant Funding Boost for AI Startup Linked to Google DeepMind CEO - PYMNTS - A startup affiliated with Demis Hassabis has raised $600 million, highlighting the growing investment interest in AI technologies across various industries, such as robotics and drug discovery.

AI TRENDS

The Next Frontier in Tech: AI and Quantum Convergence - RSM - The convergence of AI and quantum computing is set to drive innovation, enhancing model training and analyses. Businesses must prepare for associated benefits and risks.

The Future is Visual  - WIRED - Visual content is becoming crucial for effective communication as it enhances understanding and engagement. Marketers must adapt to leverage visuals in their strategies. 

Mark Cuban Argues AI Will Drive Growth, Not Deflation - Benzinga - Mark Cuban believes AI will enhance productivity and foster growth while acknowledging its challenges and the need for global competitiveness in AI innovation.

OTHER

OpenAi Plans to Raise $40 Billion to Revolutionise AI Tools and Infrastructure News  - Reuters - OpenAI is set to raise a record-breaking $40 billion, led by SoftBank, to enhance AI research and infrastructure.

How Generative AI is Transforming the Software Growth Landscape - Forbes - Generative AI is revolutionising the software industry by enhancing efficiency, automating development tasks, and driving economic growth.

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice.}