President Trump’s new tariffs on Mexico, Canada, and China sent shockwaves through the markets. On Monday, the Nasdaq plunged 4% – its worst drop since 2022 – as investors reacted to mounting recession concerns. Meanwhile, businesses scramble to stay ahead in the shifting trade war.
Watching the situation from his eponymous investment firm, billionaire Ken Fisher believes investors should remain confident. Fisher advises that the long-term outlook remains bullish, stating, “While more downside is possible, we think the biggest risk for investors is making knee-jerk decisions amid fast-moving tariff news. Market volatility can feel unsettling. However, selling stocks during a downturn can lead to missing out on gains if the market rebounds, which we believe will happen this year.”
“So far,” Fisher added, “President Trump has proposed larger tariffs this year than in 2018 and 2019, but they may not be fully implemented or remain in effect as long as expected. Even if they do, businesses are highly adaptable and find ways to adjust to shifting economic policies, which can mitigate the longer-term damage some fear. All in all, we still see a strong case for global economic growth ahead, despite tariffs, which should continue to support this bull market.”
Backing up his confidence, Fisher remains deeply invested in AI powerhouses Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOGL), holding multiple billions in both stocks. These tech giants, closely tied to the export market, stand to be affected by tariffs – yet Fisher’s unwavering commitment signals strong conviction in their resilience. Let’s take a closer look.
Nvidia
We’ll start with Nvidia, the global giant of the semiconductor chip industry – and one of the tech companies whose products helped make the AI boom possible in the first place. Nvidia released some of the first GPU chips, as far back as 1999, and they have proven to be an adaptable product, popular with gamers, professional graphic designers, and now AI developers. The strength of Nvidia’s chipsets in the data center segment has pushed Nvidia’s stock up to the very top of the Wall Street hierarchy; the company is one of the few with a trillion-dollar-plus market cap valuation.
We should note, however, that Nvidia has faced serious pressures in recent times. The company felt a hard negative impact when DeepSeek’s R1 chatbot made its splash this past January, and President Trump’s tariff announcement last week only increased the pressure – Nvidia, with its large export market for high-end semiconductor chips, is likely to fall squarely in the crossfire of a US-China trade and tariff war. Nvidia’s market cap peaked at approximately $3.66 trillion in early January; since then, the stock has shed more than $1 trillion in value, and its market cap currently stands at $2.61 trillion.
Even at this reduced level – and it does seem odd to describe $2.61 trillion as ‘reduced’ – Nvidia is still the third-highest valued company on Wall Street, behind only Apple and Microsoft. It’s important to remember that, even accounting for the year-to-date decline in the share price, NVDA is still up 385% in the last three years.
On a positive note, Nvidia has indicated that, despite a difficult launch, its new Blackwell chip series has achieved success. The company saw $11 billion in revenue from Blackwell during its last reported quarter, fiscal 4Q25, and better yet – those products all shipped out in January. Nvidia’s management believes that the next several quarters will see demand outstrip supply for the new chips, providing the company with a solid base to ramp up production.
For fiscal 4Q as a whole, Nvidia saw a top line of $39.33 billion, up 78% year-over-year and beating the forecast by $1.17 billion. Of that revenue total, $35.6 billion came from the company’s data center business, a good proxy for AI exposure. Nvidia’s fiscal Q4 data center revenue was a company quarterly record, with a 93% year-over-year gain. At the bottom line, the company realized non-GAAP earnings of 89 cents per share, 4 cents per share better than had been anticipated. Looking ahead, Nvidia expects to see revenue of approximately $43 billion in fiscal 1Q26, compared to the $42.05 billion consensus estimate.
This stock has proven highly attractive for Ken Fisher, whose firm owns 98,339,379 shares of NVDA. Fisher first bought into Nvidia in 4Q2017, so the billionaire is into the stock for the long term. At current share prices, his stake in the company is worth more than $10.5 billion.
For Bernstein analyst Stacy Rasgon, Nvidia currently presents investors with a chance to buy a solid company at a discount. The 5-star analyst writes of the stock, “Worries that the AI trade is ‘over’ feel a little premature to us, and valuation is getting increasingly attractive. Sentiment has clearly pivoted for now on the AI group. However, spending intentions seemingly continue to rise, a product cycle is just kicking off, and we have GTC coming in a few weeks. And we note that investors have historically done well to buy the stock at 25x or lower (with an average 150% next-year return with relatively limited downside), hence valuation is looking increasingly attractive… In fact, the stock now trades below parity relative to the SOX (something we have seen only once or twice in the past decade) and at only a slight S&P premium , the lowest they have been since 2016.”
Rasgon, who ranks in the top 3% of Wall Street stock experts, goes on to put an Outperform (i.e., Buy) rating on the stock, and his $185 price target implies that the shares have a robust 73% upside potential for the coming year. (To watch Rasgon’s track record, click here)
Overall, Nvidia has a Strong Buy consensus rating from the Street, based on 42 recent reviews that include 39 Buys to just 3 Holds. The shares are priced at $106.98, and the average target price, $177.41, suggests a 12-month upside potential of 66%. (See NVDA stock forecast)
Alphabet
Next on our list of ‘Ken Fisher’s picks’ is Alphabet, the parent company of both Google and YouTube, two of the internet’s leading names. Through these major subsidiaries, Alphabet holds the lion’s share of the internet search market and is a leader in video hosting and searching. The company’s lead in these fields has given it a massive asset to capitalize on the AI boom—a vast database filled with information on internet users, their search habits, and their web traffic preferences. This is exactly the type and quantity of data that is supremely valuable in today’s digital world, serving as the red meat of both online advertising and AI applications.
Alphabet uses online advertising as its main revenue generator. In the most recent quarterly report, 4Q24, the company’s ‘Google Advertising’ line item, which includes Google search, YouTube ads, and Google network, came to $72.5 billion. The company’s total revenue in Q4, $96.5 billion, was up almost 12% year-over-year, although it came in $170 million below estimates. Alphabet’s earnings for the quarter, at $2.15 per share, were 2 cents above the forecast. The company’s full-year 2024 revenue of $350 billion was up 15% year-over-year.
Alphabet is working with AI tech to expand its Google search platform. The company has already launched AI Overviews, which use Google’s Gemini AI engine to generate search summaries that appear above search results. This is being expanded with Gemini 2.0 to make it available to a wider audience and to allow it to answer more complex questions. The key point here is retaining internet search traffic. Google is facing increased competition from AI-powered search engines such as Bing, and with raw search data becoming an ever more valuable commodity, maintaining a lead in internet search is crucial to sustaining ad revenues.
This brings us to AI chatbots, which are increasingly being used to answer web search-type queries. By integrating Gemini into Google’s standard search function, the company is creating a search engine that can bring users the best of both worlds—a proven web search platform and access to a useful AI.
Ken Fisher appears confident in Alphabet’s long-term prospects. Fisher Investments first started buying GOOGL shares in 4Q2007, and today, the firm owns 50,615,038 shares of the stock. This is currently worth almost $8.4 billion.
Google’s strength in answering web queries, even on the latest topics, and the growth in internet search via search engines even as AI models expand, leads 5-star analyst Ross Sandler of Barclays to take an upbeat view of Alphabet stock. Sandler, who also ranks in the top 3% of Street stock pros, writes in a recent note, “The investment community (including us) have been worried that products like ChatGPT could be having an impact on Google’s query growth. New data disclosed by the company shows ‘over 5 trillion’ queries annualized in Jan-2025. This figure includes some new query types like AI overviews, Circle-to-Search, Lens Search, etc. Recall that MSFT’s CEO disclosed global queries at 3.65T in Feb 2023, which we used to estimate Google at 3.5T annualized (for early-2023). Hence, some quick back of the envelope math suggests that queries have been growing over 20% since ChatGPT came out.”
Sandler’s Overweight (i.e., Buy) rating on GOOGL is complemented by a $220 price target, reflecting his confidence in a 32.5% gain for the stock over the next year. (To watch Sandler’s track record, click here)
There are 36 recent analyst reviews on record for GOOGL, and the 25-to-11 split between Buys and Holds gives the stock a Moderate Buy consensus rating. Shares are currently trading for $165.87, and the $215.88 average target price implies a one-year upside potential of 30%. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.