Despite the recent volatility in the stock market, which hasn’t benefitted many investors’ portfolios, it has presented one significant advantage. The recent sell-off has brought down stock prices for a number of high-quality technology firms into more affordable ranges.
Corrections in the market—defined as declines of 10% or more—are relatively standard occurrences and shouldn’t cause alarm. The opportunities they create for long-term investors generally outweigh the concerns of short-term fluctuations. Let’s explore three excellent tech stocks now available at more appealing valuations that may be worth considering during this market dip.
Nvidia (NASDAQ: NVDA)
Nvidia’s share prices have fallen over 22% from recent peaks, entering bear market territory. The stock now boasts a more attractive forward price-to-earnings (P/E) ratio of 26.5 based on projections for 2025, alongside a price/earnings-to-growth (PEG) ratio of around 0.5. Typically, stocks with PEG ratios below 1 are seen as undervalued, while growth stocks often have ratios exceeding 1.
Nvidia has consistently been a top growth stock, more than doubling its revenue in the past two years. Analysts estimate that revenues will further soar by 54% this fiscal year, which ends in January 2026. As the leading producer of chips for artificial intelligence (AI) infrastructure, Nvidia is well-positioned for future growth with the increasing demand for AI data centers. Their graphic processing units (GPUs) have become the foundational technology for many AI applications.
Alphabet (NASDAQ: GOOGL & GOOG)
Alphabet is currently down about 23% from its recent highs and is trading at a forward P/E of slightly above 18. The company retains a strong market hold in search and is involved in various leading and emerging sectors. It also possesses significant prospects in AI, serving as one of the largest cloud service providers globally, where it aids clients in developing their own AI models.
Alphabet is integrating AI to enhance search results and has developed promising early-stage AI applications, such as its Gemini generative AI app and its Veo 2 text-to-video app. The company has historically limited ads to 20% of its search results, indicating a potential avenue for increased revenue through the introduction of new ad formats in AI-generated overviews. These factors make Alphabet an attractive stock to buy at its current valuation.
Pinterest (NYSE: PINS)
Currently trading approximately 31% below its recent highs, Pinterest’s stock has a forward P/E ratio of just 17. Following a robust earnings report, the shares initially surged, but have since declined significantly. Pinterest, recognized for its visual online platform, has made substantial investments in recent years to enhance user experience and monetization capabilities.
Pinterest is leveraging AI across its operations, improving ad relevance and execution while developing a new automation platform yielding early success. Collaboratively, it has partnered with Amazon and Google to broaden its monetization capabilities and enhance content accessibility. As Pinterest continues striving to close the revenue gap with competitors, it presents a compelling buying opportunity as the stock is presently available at a discount.
