The tech-heavy Nasdaq-100 index slipped into a bear market in April after President Donald Trump announced his “Liberation Day” tariffs. But most of America’s top trading partners are now at the negotiating table, giving investors confidence that a global trade war can be averted. As a result, the Nasdaq-100 recovered its losses and is now trading at a record high, so a new bull market is officially underway.

America’s largest technology companies are driving the artificial intelligence (AI) revolution, and many of them — including powerhouses like Nvidia — have led the Nasdaq-100 into its latest bull phase. In fact, investors who haven’t owned a slice of the AI industry over the last couple of years have probably underperformed the broader market.

But there’s a simple way to address that. The Roundhill Generative AI and Technology ETF (CHAT 0.68%) is an exchange-traded fund (ETF) that holds a concentrated portfolio of AI stocks, so it could be a great buy for investors who lack exposure to this fast-moving technology. Here’s the best part: Shares trade for under $50 each, so it’s accessible for investors of all experience levels.

Image source: Getty Images.

Top holdings in Nvidia, Palantir, Oracle, and more

Unlike some ETFs that hold hundreds or even thousands of different stocks, this Roundhill ETF holds just 40. It exclusively invests in companies that develop the platforms, infrastructure, and software at the heart of the AI revolution, so it offers practically no diversification.

In fact, the top five holdings in the ETF alone represent 24.9% of the entire value of its portfolio, which further highlights its significant concentration.

Data source: Roundhill Investments. Portfolio weightings are accurate as of July 11, 2025, and are subject to change.

Nvidia is the one AI stock practically every investor wants to own. Its chips and networking equipment for data centers are critical for AI development, and demand for that hardware continues to outstrip supply. Sales have been so strong that Nvidia stock has soared more than tenfold since the beginning of 2023 alone, and it’s now the world’s only $4 trillion company.

Alphabet is one of Nvidia’s biggest customers, having used its chips to develop its own large language models (LLMs) and AI software applications. It also operates large, centralized data centers and rents the computing capacity to developers for profit. Oracle is another major player in that space, and its data centers are among the most advanced and most cost-efficient in the entire industry, which is why leading start-ups like OpenAI and Elon Musk’s xAI are lining up to use them.

Then there’s Palantir. Its stock is up by more than 400% over the past year alone, thanks to soaring demand for its AI software. Its Gotham, Foundry, and AIP platforms help governments and private enterprises analyze high volumes of data to extract actionable insights, which they can use to make better operational decisions.

Outside its top five holdings, some of the other popular AI stocks in the Roundhill ETF include:

• Meta Platforms, which is the world’s largest social media company. It’s using AI to keep users engaged, to power new features, and to help advertisers create better content.
• Advanced Micro Devices, which has become a competitor to Nvidia in the market for AI data center chips. It’s also a leading supplier of AI chips for personal computers, which could be a major growth segment in the future.
• Salesforce, which operates one of the world’s largest customer relationship management platforms. Its new Agentforce layer allows businesses to create custom AI agents to serve customers and automate operational tasks, making human employees more efficient.

The Roundhill ETF can help investors beat the market

There are a couple of downsides to this ETF. First, it’s quite costly to own because its expense ratio is 0.75%, which can detract from investors’ returns over the long run. It’s an actively managed fund, which means a team of experts is constantly adjusting the portfolio to deliver the best results, and that comes with higher costs.

For some perspective, many passive index funds issued by Vanguard have expense ratios of just 0.03%, meaning an investment of $10,000 in one of those funds would incur an annual fee of just $3, compared to $75 for the Roundhill ETF.

Second, the ETF was only established in mid-2023 so it doesn’t have a very long track record for investors to analyze. With that said, it delivered a return of almost 90% since its inception, which is far better than the 65% gain in the Nasdaq-100 over the same period. The strong return also makes the high expense ratio a little easier to stomach, because it’s comfortably offsetting the costs.

As I mentioned earlier, the Roundhill ETF lacks diversification, so investors shouldn’t put all of their eggs in one basket. However, it could supercharge an existing portfolio of other ETFs or individual stocks that doesn’t already have exposure to the AI industry.

Investing in the stock market is one way to build enduring, long-term wealth. As an investor, you could choose to invest in high-flying growth stocks, dividend stocks that provide passive income, or more conservative investments that can preserve and grow your investments steadily over time.

One strategy you can consider is investing in blue chip companies. These companies have withstood the test of time thanks to sound business models that have led to solid returns for patient investors.

Blue chips typically offer reliable dividends and steady long-term growth, making them appealing to both seasoned investors and newcomers seeking to establish a solid financial foundation. Here are four blue chip stocks you can invest in today.

Image source: Getty Images.

Berkshire Hathaway

Berkshire Hathaway (BRK.A -0.62%) (BRK.B -0.52%) has thrived under the leadership of its longtime CEO, Warren Buffett. Since 1965, Buffett has led the conglomerate to 20% annualized returns, or enough to turn a $100 investment into $5.5 million today.

So when Buffett announced earlier this year he was stepping down at the end of 2025, it took the wind out of the sails of Berkshire Hathaway stock, which is down 12% since the announcement in early May.

However, Berkshire Hathaway is a widely diversified conglomerate with holdings across numerous industries, including insurance, transportation, materials, consumer goods, and energy. Its insurance operations help generate a steady stream of cash flow, which it can invest in treasuries or equities, or use to acquire companies outright.

What makes Berkshire appealing right now is its massive cash pile and positive tailwinds from higher interest rates. The Federal Reserve is cautious about cutting interest rates due to concerns about inflation stemming from higher tariffs. This has resulted in rates staying “higher for longer,” and Berkshire has benefited to the tune of $2.9 billion in interest income in the first quarter.

Berkshire will be under new leadership, led by CEO Greg Abel, with its investment portfolio managed by Todd Combs and Ted Weschler, the investing lieutenants tapped by Buffett and the late Charlie Munger over a decade ago. While the uncertainty around its future remains, I think it’s well-capitalized and diversified enough that it’s a buy at today’s price.

Progressive

Progressive (PGR -1.86%) is the second-largest automotive insurer in the United States. What sets this blue chip company apart is its disciplined underwriting, strong brand, and direct-to-consumer model.

The company relies heavily on technology and data to accurately price risk and was one of the original companies to adopt usage-based insurance, known as telematics. This approach utilizes driver data to price policies, which is one reason the company has outperformed its competitors.

Progressive’s track record of navigating underwriting cycles while maintaining profitability distinguishes it. Going back 23 years, the company’s combined ratio has averaged 92%, which is significantly lower than the industry average of 100%. Put differently, Progressive has earned an average of $8 in underwriting profit for every $100 in premiums.

As a stock, Progressive offers defensive characteristics with upside. Insurance is a stable industry that enjoys steady demand, and Progressive has demonstrated its ability to outperform its peers in underwriting profitability.

The company is also well-positioned to perform if inflation and interest rates were to remain elevated. That’s because it has pricing power, allowing it to adapt to rising costs, and it also earns interest on float (the cash it collects from premiums but hasn’t yet paid out in claims).

Its stellar long-term performance and ongoing strong underwriting make Progressive an excellent blue chip stock to consider adding to your portfolio today.

Chubb

Chubb (CB -0.89%) is one of the world’s largest publicly traded property and casualty insurers, recognized for its underwriting discipline, global diversification, and robust balance sheet. It operates across commercial and personal lines, with a reputation for serving high-net-worth individuals and complex corporate risks. Its conservative approach to risk, coupled with a broad international footprint, has enabled it to weather economic cycles well.

Chubb has been a solid dividend stock for investors, growing its payout for 32 consecutive years. With a yield of 1.4% and an average annual total return of 11.7% over the past two decades, the company offers investors a balanced combination of income and stock price appreciation. It also enjoys the benefits that Progressive does, such as pricing power and interest income, making it another solid blue chip stock to consider owning today.

S&P Global

S&P Global (SPGI -0.52%) plays a key role in markets. The company is perhaps best known for its S&P 500 index, but it also provides credit ratings, data, and analytics. Barriers to entry make it difficult to break into the credit ratings space, and S&P Global holds a 50% share of this market.

S&P Global’s business model is resilient and scalable. Credit rating demand rises with bond issuance, while its index and data segments enjoy recurring fees from ETF licensing and subscriptions. The company also has low capital requirements, which enables it to enjoy high margins, recurring revenue, and a global reach.

The company has raised its dividend payout for 53 years, making it an exclusive member of the Dividend Kings club. While it offers a modest dividend yield of 0.7%, when combined with its stock price appreciation, S&P Global has returned 15.3% annually over the past two decades. For investors, S&P Global offers growth and a wide moat along with steady cash flows, making it a quality blue chip stock to own today.

Americans have become increasingly interested in exchange-traded funds, which let investors diversify their investments over various sectors and companies instead of picking individual stocks to buy. For example, investors can choose energy-specific ETFs, artificial intelligence ETFs, and others that track stock market indices.

Last year, U.S. investors funneled more than $1 trillion into ETFs, beating record inflows set in 2021. But with so many options available, which one is the best option? I’m partial to the Vanguard S&P 500 ETF (VOO 0.61%), a passively managed fund that aims to track the performance of the S&P 500. Here’s why it’s a great place to put $1,000 right now.

Image source: Getty Images.

1. It’s a low-cost fund

Vanguard ETFs have some of the lowest fees in the industry. That’s good news because it means that you’ll keep more of your gains when the fund’s value increases rather than having them siphoned off by high management costs.

The Vanguard S&P 500 ETF charges an expense ratio of just 0.03%, which is low by even passively managed fund standards, with the average expense ratio being around 0.12%. This means that for every $10,000 you have invested in Vanguard’s S&P 500 ETF, you’ll pay just $3 annually, compared to $12 for the average fund.

This low expense ratio makes the Vanguard S&P 500 ETF one of the cheapest ways to track the market, and it’s one big reason why putting $1,000 toward the fund is a smart move. As the S&P 500 grows, you’ll be keeping far more gains from your initial investment than with other ETF alternatives.

2. The S&P 500’s returns are impressive over time

Some investors aim for market-beating returns, and there’s nothing wrong with that goal. But it’s important to remember that the S&P 500’s average historical annual return of about 10% (before inflation) is still a very good return on your investment.

You’re not guaranteed to see those results every year, of course, and you’ll certainly have some years where you’ll have losses if you stay invested long enough. But over time, the S&P 500 has consistently been a moneymaker for those who patiently keep their money in the market.

Consider that over the past five years, the S&P 500 has fluctuated as a result of a global pandemic, soaring inflation, rapid interest rate hikes, geopolitical turmoil, an artificial intelligence (AI) boom, and President Trump’s tariffs. That’s a lot of market influence packed into just five years, and yet the S&P 500 has gained nearly 90% since the start of 2020.

Past performance isn’t indicative of future returns, as they say, but I use this example to show that even when there’s a lot of uncertainty in the world, the market tends to rebound.

3. You don’t have to be a good stock picker

There are a lot of great companies to invest in, but it’s time-consuming to do the research necessary to find great stocks. And even after doing your due diligence before buying, you’ll likely spend some time keeping up with the company’s earnings reports, management changes, and macroeconomic forces that could influence its share price.

Or, you could skip all of that. You can still invest in great companies and know that you’re well-diversified among many sectors and trends by buying Vanguard’s S&P 500 ETF. Some people like doing their own research and enjoy keeping up with the stocks they own. I get it. But if you prefer not to, then buying an S&P 500 ETF is a great option.

For all of the reasons above, I have most of my investment portfolio in Vanguard’s S&P 500 ETF. I like knowing that most of my investment strategy doesn’t involve panicking whether I’ve tied too much money up into one stock or hoping that a long-term investment bet I’ve made eventually pays off. If you’re looking for that peace of mind — and some likely solid returns along the way — putting $1,000 into the Vanguard S&P 500 ETF is a fantastic option.

There’s no need to go on about the success that Berkshire Hathway has seen under the stewardship of Warren Buffett and his team. They have outperformed the market and made billions in the process. I remain bullish on following the company’s portfolio, even if Warren Buffett steps back from being in charge.

Greg Abel, his successor, and the rest of the Berkshire team have learned from the best of the best, and I think their picks hold sway. To that end, here are three Berkshire Hathaway stocks I like right now.

Image source: The Motley Fool.

Visa

Financial services companies like Visa (V 0.90%) don’t go out of style. This is a steady performer that pays over time. Over the last four years, the company has created double-digit-percentage revenue growth, and remains one of the preeminent players in credit and payment services.

Over the last few years, Visa has created double-digit rates of revenue growth, with similar trends in income, as net income reached $19.6 billion last year. I like how the company is slowly decreasing shares outstanding, which improves earnings potential for shareholders over the long term. On top of that, estimates are calling for earnings to continue to increase annually over the next four years. This is a steady stock that stands to deliver over time.

Overall, it’s hard to bet against credit cards and their related services. More and more people are looking to simplify their purchases and move away from cash, and Visa continues to stand to gain from that. So long as the world economy continues to grow, and people facilitate the transfer of more and more money, Visa is definitely worth a look.

Apple

Apple (AAPL 0.04%) is in a slow patch, which makes me think this is a great time to get involved. Down over 20% in the past six months, Apple is faced with the task of creating new innovations in its lineup. The endless new iPhones really aren’t that different from the ones before, and they are the bread and butter of Apple’s business.

This doesn’t mean that the story is over though. Artificial intelligence (AI) and burgeoning technology still leave Apple with opportunities, and this dip might be a perfect time to buy the stock. Yes, Warren Buffett has shrunk Berkshire’s position in the company, but that doesn’t mean it’s a bad buy today. The company still sells a ton of iPhones, and revenue from that segment continues to grow.

When you look at Apple’s most recent results, things look better than you think. Through the first six months of fiscal 2025, total revenue increased by roughly 4.4% to $219.6 billion. In all, Apple is going slow and steady. Its flagship product, the iPhone, grew revenue by just under 2% in the fiscal second quarter, while total sales increased 5% year over year in the second quarter to $95.4 billion.

In all, there’s a significant “moat” as Buffett likes to call it in regards to new competitors trying to get into the industry. Try building a trillion-dollar tech conglomerate and see how far you get! The iPhone is an integral part of many individuals’ lives, and that isn’t going to change anytime soon. The challenge here is waiting out the tariffs implemented by President Donald Trump on foreign manufacturing. But I’m skeptical of the long-term impact tariffs will have on Apple’s production.

Chubb

The last time I wrote about Chubb (CB 0.53%) was in October 2024. While not much has happened for the stock since then, I still consider this a good long-term play. As of March 31, Chubb represented 2.8% of Berkshire’s portfolio. This is an insurance company that produces double-digit annual revenue growth, operates in 54 countries, and has strong estimates for the future.

To me, the blessing of Berkshire Hathaway tells me that this insurance business has potential. Analyst estimates are calling for a weaker fiscal 2025, with earnings estimates of $21.79, which would mark a decline from last year’s earnings of $22.70. So why do I like the stock? After this year, estimates go way up. By fiscal 2027, average estimates are calling for earnings of $28.29 per share.

To me, this is a buy-and-wait stock. A weak 2025 should provide opportunities to acquire shares to hold for the long term. With the stock trading at just 13.9 times earnings, one can see why Berkshire is interested. Insurance is a business that isn’t going anywhere. Love it or hate it, it’s a part of life, which makes Chubb a no-brainer holding to me.

Artificial intelligence (AI) is set to play a key role in driving global economic growth in the long run. The evolving technology is expected to boost productivity, create new revenue streams, and facilitate innovation.

Market research firm IDC, for instance, forecasts that in 2030, each dollar spent on AI-related services will generate $4.60 in value. And a report from the United Nations Trade and Development office suggests that the AI market could surge in value by 25x over the next decade, generating a whopping $4.8 trillion in revenue in 2033.

With that in mind, it won’t be surprising to see organizations and governments investing far more money in AI-focused hardware and software to become more productive and efficient. That’s why investors would do well to take a closer look at a couple of names that are playing central roles in the proliferation of AI.

Image Source: Getty Images

1. Broadcom

Broadcom (AVGO 2.67%) makes specialized application-specific integrated circuits (ASICs) and networking chips used in data centers, and demand for its processors has taken off thanks to the proliferation of AI systems. Several cloud computing giants have been deploying Broadcom’s custom AI processors to lower the costs of AI training and inference, and to reduce their reliance on expensive graphics processing units (GPUs) from Nvidia.

ASICs are custom AI processors built to perform specific tasks, allowing them to deliver more computing power with lower energy consumption when compared to general-purpose GPUs. The advantages of custom AI processors make them ideal for large-scale deployment in data centers and are precisely the reason why Broadcom’s AI business is taking off.

Currently, three hyperscale cloud customers use Broadcom’s custom accelerators in large AI data centers to develop next-generation models. The chipmaker is deeply engaged with these customers to develop even more advanced custom processors and networking chips to support their product roadmaps for the next three years.

In Broadcom’s view, these three hyperscalers alone should create a serviceable addressable market (SAM) worth $60 billion to $90 billion for it by fiscal 2027. The company’s AI revenue jumped by 77% year over year in the first quarter of its fiscal 2025 to $4.1 billion, so it is currently clocking a more than $16 billion annual run rate.

Broadcom, therefore, has terrific room for growth in the custom AI chip market over the next three years. But it’s also worth noting that the company is engaged with another four hyperscalers that are looking to build and deploy custom AI accelerators. Broadcom is in the final stages of chip development for two of those customers, while the other two recently selected the chipmaker to build their own custom chips.

So, Broadcom’s addressable opportunity in custom AI chips could be much larger in the long run than what the company recently projected. As a result, it could end up delivering much stronger revenue growth over the next three fiscal years than what analysts currently expect.

Data by YCharts.

The semiconductor giant could easily exceed that $82 billion revenue forecast in three years, once it is producing custom AI chips in large volumes for all seven of its customers. This probably explains why the company trades at an attractive price/earnings-to-growth ratio (PEG ratio) of 0.64 based on its projected earnings growth for the next five years, according to Yahoo! Finance.

The PEG ratio is a forward-looking valuation metric that takes into account a company’s expected earnings growth; a positive reading of less than 1 is generally viewed as an indication that a stock is undervalued. Broadcom’s PEG ratio is well below that mark. As such, investors should consider buying this AI stock right away, before it flies higher following the 26% gain it clocked over the past month.

2. Lam Research

Lam Research (LRCX 2.08%) manufactures semiconductor manufacturing equipment — machines used by foundries and chipmakers to make chips for everything from smartphones to cars to computers to data centers. And the market it operates in is on track to expand nicely due to the growing demand for AI chips.

According to one estimate, global spending on semiconductor equipment could jump to $121 billion in 2025 and to $139 billion in 2026. Those estimates point toward a nice improvement from last year, when spending stood at $113 billion. However, don’t be surprised if semiconductor equipment spending increases at an even faster pace based on recent updates from key chip companies involved in the manufacturing of AI equipment.

Foundry giant Taiwan Semiconductor Manufacturing, popularly known as TSMC, plans to have eight new chip fabrication plants under construction this year, as well as one advanced chip packaging facility. Memory specialist Micron Technology, meanwhile, expects to lay out $50 billion in capital expenses in the U.S. through 2030. As such, it is not surprising that Lam Research saw an impressive acceleration in its revenue and earnings growth.

In its current fiscal year, analysts expect its sales to increase by 22% to $18.2 billion and its earnings to increase by 32%. What’s more, management is confident that it will achieve revenue in the $25 billion to $28 billion range by 2028, indicating that its top line could jump by around 50% over the next three fiscal years.

Assuming Lam hits the midpoint of its 2028 forecast range and that the stock maintains its current price-to-sales ratio of 6.4 at that time, its market cap would increase to around $170 billion. That would amount to a jump of around 65% in the space of three years. However, Lam today trades at a cheaper price-to-sales ratio than the U.S. technology sector’s average of 7.4. So it won’t be surprising to see this semiconductor stock delivering even stronger gains than that, as the market could put a higher valuation on it in light of its robust growth.

Despite the volatility the broader market has experienced in recent months, the S&P 500 index (^GSPC -1.61%) is still at lofty levels. The dividend yield is a miserly 1.3% or so. You can do better than that with an index fund focused on the out-of-favor energy sector, but even there, the average yield is “only” around 3.5%. You can do much better with Chevron (CVX -1.25%), TotalEnergies (TTE -0.86%), and Enterprise Products Partners (EPD -1.21%), which offer yields of up to 6.6%.

1. Chevron is a reliable dividend stock

The energy industry tends to be volatile, given the volatile nature of oil and natural gas prices. But Chevron has managed to ride the ups and downs in relative stride, having now increased its dividend annually for 38 consecutive years. With oil relatively weak today, the company’s stock price has fallen and the yield has risen to an attractive 4.8%. That’s well above the average energy stock.

Image source: Getty Images.

Chevron’s business model is the foundation of its success on the dividend front. First, the company’s integrated model exposes it to the upstream (drilling for energy), the midstream (pipelines), and the downstream (chemical and refining). This diversification helps to soften the effect of the peaks and valleys the sector goes through. Second, Chevron has a strong balance sheet, with a debt-to-equity ratio of around 0.2x today. That would be a low level of leverage for any company, but the key is that it gives management the leeway to lean on the balance sheet during hard times so it can continue to support its business and the dividend.

If you are looking for broad exposure to the energy sector, Chevron is usually one of the more attractive options available. And today, given its relatively high dividend yield, it is more attractive than usual.

2. TotalEnergies adds clean energy to the energy mix

TotalEnergies, which has a 6.5% dividend yield, is also an integrated energy major, like Chevron. So the two companies share a basic business model. That said, the French energy giant tends to carry more debt, so the balance sheet isn’t quite as strong. Management also carries more cash, so the net debt-to-equity ratio is on par with Chevron. That’s reassuring, but it still isn’t the same thing as having less debt. There is a bit more balance sheet risk with TotalEnergies.

Yet there’s a reason, beyond the higher yield, that income investors might prefer TotalEnergies over Chevron. That goes back to the integrated approach. Chevron has largely stuck to its oil and natural gas roots. TotalEnergies has been building a business around electricity and clean energy. Basically, it’s using the profits from dirtier carbon fuels to invest in the energy niche that is increasingly displacing those fuels. If you like the idea of Chevron but prefer a clean energy hedge, TotalEnergies will be a no-brainer high-yield switch-out for you.

3. Enterprise Products Partners sidesteps commodity prices

If you like the yields on offer from Chevron and TotalEnergies, but you just can’t get past the exposure to volatile commodity prices, don’t worry. There is still a high-yield energy opportunity for you in the form of midstream giant Enterprise Products Partners, which has a lofty 6.6% or so yield backed by 26 annual distribution increases. The key here is that this master limited partnership (MLP) is just a toll taker.

Enterprise owns the infrastructure (midstream assets) that helps move oil and natural gas from where it is produced to where it is used. It charges fees for the use of these assets, so demand for energy is more important than the price of energy to Enterprise’s top and bottom lines. Energy demand tends to remain robust regardless of energy prices, given the importance of power to the modern world. So Enterprise tends to produce reliable cash flows through the entire energy cycle. That allows it to support its large and growing distribution.

The one problem with Enterprise for some investors will probably be its growth profile, which is basically as exciting as watching a tortoise “run.” However, given the high yield, investors focused on maximizing the income they generate probably won’t care too much about that issue.

Don’t settle for average — you can do better

If you’re looking for energy exposure, you could simply buy an index-based ETF, settling for a yield of around 3.5%. That’s not exactly bad given the painfully low yield of the broader market. However, you can do better with well-run integrated energy giants Chevron and TotalEnergies. Meanwhile, you can sidestep commodity risk and still collect a lofty energy-related yield with Enterprise Products Partners. As little as $500 could get you started in each of these high-yield energy investments.

With Warren Buffett’s recent announcement that he’s stepping down as the CEO of Berkshire Hathaway, it’s worth taking a look at a couple of stocks in his company’s $286 billion portfolio that look like good buys right now.

Two standouts among the many great options are Amazon (AMZN 0.18%) and American Express (AXP -0.02%). Here’s why you should consider picking up their shares now.

Image source: Getty Images.

1. Amazon

There are some legitimate concerns being raised about the retail and e-commerce industries right now in light of all the tariff uncertainty. Amazon isn’t immune, and its CEO Andy Jassy said on the company’s first-quarter earnings call, “Obviously, none of us know exactly where tariffs will settle or when.”

But focusing too much on tariffs compared to Amazon’s long-term opportunities is probably a mistake. For one, the company has 40% of the U.S. e-commerce market, easily outpacing Walmart‘s 7% share.

Its North American sales have also been very strong lately, jumping 8% in the most recent quarter to $93 billion, showing that Amazon continues to expand its e-commerce footprint.

But it’s not just e-commerce that makes Amazon an enticing stock. The company also has the largest cloud computing service, Amazon Web Services (AWS), with 30% of the market compared to Microsoft Azure’s 21%. AWS accounts for about 63% of the parent company’s total operating income, making the business a crucial part of Amazon’s long-term plans.

Many companies are focusing on expanding their artificial intelligence (AI) cloud services lately, and it’s a huge opportunity for AWS. Cloud revenue could become a $2 trillion market over the next five years as AI fuels demand, and Amazon’s leading cloud platform gives it an edge in this space.

To top it all off, Amazon’s stock looks relatively well priced right now. The stock’s trailing price-to-earnings ratio is 34, a bit higher than the S&P 500‘s 28 but cheaper than Walmart’s P/E of 40.

2. American Express

One of Buffett’s favorite stocks has been American Express, which he bought in 1991 and is now Berkshire Hathaway’s second-largest holding.

American Express continues to grow even as some investors have worried that early impacts of President Donald Trump’s tariffs could slow spending. That doesn’t seem to be the case yet, with the company’s revenue increasing 7% in the first quarter (which ended March 31) to about $17 billion and its earnings per share (EPS) rising 9% to $3.64.

Management also remains optimistic about the year and maintains guidance of 9% revenue gains for 2025 and an earnings outlook of $15.25 per share, both at the midpoint. That’s notable considering that many companies have scaled back their outlook and even retracted any guidance for the full year in light of tariff and economic uncertainty.

Much of the company’s growth has come from its ability to collect higher fees from its members. Management said on the company’s recent quarterly earnings call that the average card fee per new account acquired has increased by about 40% over the past three years, reflecting “strong demand for our premium products.”

What’s more, American Express stock is relatively inexpensive with a price-to-earnings multiple of just 21, making it cheaper than most of the broader market.

Keep this in mind when buying these two Buffett stocks

The market has been volatile over the past couple of months, and there’s still uncertainty surrounding tariffs and the economy. That doesn’t mean Amazon and American Express aren’t good buys right now, but investors should expect some price swings in the short term.

If you’re just starting a position in either company, it might be wise to start small right now and then add to your position over time. This dollar-cost averaging approach can be a good way to buy great stocks over time, without committing too much capital up front.