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Geoffrey Seiler, The Motley Fool
5 min read
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While the stock market volatility over the past month hasn’t been all that great for many investors’ portfolios, it has helped in one regard. This recent sell-off has pushed the stock prices of several quality technology companies into bargain territory.
Market corrections — declines of 10% or more — are quite common and nothing to panic over. The opportunities they can create for long-term investors generally make up for the short-term anxiety. Let’s look at three great tech stocks now trading at more bargain valuations that you might want to consider buying on this latest market dip.
Nvidia (NASDAQ: NVDA) share prices trade down more than 22% from their recent highs (as of this writing), pushing the stock into bear market territory. The stock now has a much more reasonable forward price-to-earnings (P/E) ratio of 26.5 times based on 2025 analyst estimates and a price/earnings-to-growth (PEG) ratio of about 0.5. Stocks with PEG ratios below 1 are typically viewed as undervalued, while growth stocks will often have PEG ratios well above 1.
Meanwhile, Nvidia has been the ultimate growth stock. The company has more than doubled its revenue each of the past two years, while analysts project its revenue will increase another 54% this fiscal year, ending January 2026.
The company is the leading maker of chips that are used in artificial intelligence (AI) infrastructure. With spending on AI data centers continuing to skyrocket, Nvidia is poised to still be the biggest beneficiary moving forward. More and more AI chips are needed to train advanced AI models, and Nvidia’s graphic processing units (GPUs) have become the standard on which much of this AI infrastructure is being built.
With AI looking to still be in its early innings of development and opportunities, Nvidia is a bargain stock investors can scoop up ahead of the next bull run in the stock.
Trading off about 23% from its recent highs (as of this writing), Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is another tech leader that has been tossed in the bargain bin. The stock trades at a forward P/E of just over 18 times for a company with a dominant market position in search, as well as other leading and emerging businesses.
The company has several nice opportunities with AI. It operates the third-largest cloud computing company in the world, where it helps customers build out their own AI models and applications with assistance from its Gemini foundational model. Meanwhile, it has created several promising AI apps that are still in their early days, including its Gemini generative AI app and its Veo 2 text-to-video app.