President Trump is moving forward with his 25% tariffs on Canada and Mexico. He’s also tacking on an additional 10% tariff on China. Stocks didn’t react too well to the news, with the Nasdaq Composite dropping by 2.64% at the end of the day. 

While the tariffs increase uncertainty, every stock market has opportunities. Investors may want to monitor these three stocks, which can bounce back amid tariffs.

Robinhood (HOOD)

Robinhood (NASDAQ:HOOD) took a beating after the tariffs were announced. Shares dropped by 6.41% for the day after starting up 9% before losing all of those gains and dropping even more. Despite the setback, Robinhood is up by 19% year-to-date and has positioned itself as a comeback stock.

The fintech company looks poised to rally due to exceptional revenue and earnings growth. The company reported 115% year-over-year revenue growth in Q4 2024 amid an 86% year-over-year boost in Gold Subscribers. Cryptocurrency transactions were a big part of that, making up $358 million of total revenue. The crypto segment was up by a startling 700% year-over-year.

While some expressed caution that relying on crypto can hurt Robinhood’s financials if crypto transactions slow down, that’s unlikely to happen. President Trump made a fresh announcement about the U.S. Crypto Strategic Reserve on Sunday, which sent cryptocurrencies higher. The initiative can boost demand for cryptocurrencies, especially as it becomes a more frequent news item. Speculative traders may also use the tariffs as an opportunity to buy puts, further boosting Robinhood’s revenue and profits.

Rolls-Royce (RYCEY)

Investing in international markets during the tariffs may provide investors with some solace, and Rolls-Royce (OTCMKTS:RYCEY) is a stock worth considering. While many people know about the Rolls-Royce luxury cars, the company is also a leading producer of European military transportation equipment. 

The United Kingdom and European Union look ready to pour more money into the war in Ukraine amid the United States’ farewell. The UK and the EU have been ramping up their investments into building a stronger Europe in case the United States pulls out of the continent. This looks like a long-term commitment that can further bolster European defense contractors.

Defense contractors like Rolls-Royce are poised to benefit from this development, and some investors have already noticed. Shares are up by more than 40% year-to-date, with most of those gains coming after the clash between Trump and Zelensky in the White House. Rolls-Royce may take a hit if Ukraine and Russia make a deal or the United States doesn’t back out entirely. However, the U.S. appears to be getting more distant in the conflict, and Rolls-Royce stock has other ways to grow. Shares have more than doubled over the past year.

Innodata (INOD)

Few industries got hit as hard by Trump’s tariffs as AI stocks. The once-beloved stocks have fallen out of favor, especially Nvidia (NASDAQ:NVDA) and Super Micro (NASDAQ:SMCI). Both of those stocks look enticing for long-term investors, but they can dip lower due to the recent discovery that Blackwell chips have been getting into China. This could prompt Trump to enforce stricter export controls, which would hurt both of those companies’ earnings.

However, not every AI stock depends on semiconductor chips. Software stocks that benefit from AI may present good opportunities since most of them have also suffered pullbacks to start the year. Innodata (NASDAQ:INOD) is one of those stocks. It’s a global data engineering company that organizes the data that’s fed into AI models. The company has five of the seven Magnificent Seven stocks as its customers. 

Innodata is one of the few AI stocks that’s up year-to-date, registering a 29% gain so far. Shares briefly touched $70 apiece amid a strong Q4 earnings report that featured 127% year-over-year revenue growth and 523% year-over-year net income growth. The company’s profit margins are growing, and tech companies will need help with structuring data for their AI models.

Innodata is down by roughly 30% from its peak but is still outperforming the stock market. It only has a $1.5 billion market cap and is likely insulated from tariffs. Big tech companies will continue to spend heavily on artificial intelligence, and Innodata’s status as a smaller company means that it doesn’t take as much effort to generate significant revenue growth. Companies will have plenty of data even if tariffs impact Nvidia’s chips, and most of Innodata’s customers are based in the United States.

As of this writing, the author had a long position in INOD