A stock market correction is generally defined as a drop of 10% from recent highs, and the tech-heavy Nasdaq Composite just got there. The Nasdaq has been the best performing major market index for the past two years but has not exactly started 2025 on a high note.
However, this has created some interesting opportunities for long-term investors to put money to work. After all, the tech sector is likely to be one of the least-affected by tariffs, and while some of the biggest momentum stocks remain richly valued even after a correction, there are some that look remarkably attractive right now.
With that in mind, here are two Nasdaq stocks in particular, both of which are down by significantly more than 10%, that could be worth a closer look right now while the index is in a correction.
Don't make the mistake of overlooking this chipmaker
Advanced Micro Devices (AMD +3.40%), which is more commonly known by its initials, AMD, has been one of the worst performing large-cap technology stocks recently. The shares are down by nearly 20% since the start of 2025 and have plunged by more than 55% from their 52-week high.
NASDAQ: AMD
Key Data Points
However, there's a lot to like about AMD. Although it is a distant second in the world of graphics processing units (GPUs) to Nvidia (NVDA 1.07%), it still is a large manufacturer and has several other types of chips in its product portfolio as well. The company's business is divided into four segments, and all have tons of growth opportunities.
The data center segment makes up half of AMD's revenue and nearly doubled its revenue in 2024. With the data center industry expected to grow by 140% by 2030, there could be plenty of growth ahead. The company's personal computer business has grown impressively, taking share from key rival Intel (INTC +0.85%) and rolling out impressive AI-focused chips. The gaming and embedded segments of the business have been under pressure recently, and the latter includes AMD's automotive chipmaking business, which could have tremendous tailwinds as autonomous vehicle technology evolves.
At the current beaten-down price, AMD trades for just 22 times forward earnings expectations, despite 24% revenue growth in the fourth quarter and massive long-tailed opportunities throughout its business.
My favorite Magnificent 7 stock to buy right now
While some of the "Magnificent Seven" stocks look rather expensive, even after a Nasdaq correction, there's a case to be made that Google parent Alphabet (GOOGL 1.54%)(GOOG 1.49%) is a cheap stock.
After falling by about 18% from its 52-week high, Alphabet trades for about 19 times forward earnings, despite excellent momentum in its business. In the most recent quarter, revenue grew by 12% and earnings per share grew at an outstanding 31% year-over-year pace.
The Google Cloud business looks especially attractive right now, as the company has been a big beneficiary of the AI investment wave. Google Cloud revenue grew 30% year-over-year in the fourth quarter but still makes up just about 12% of the total. With the cloud computing market expected to nearly quadruple in size by 2032, this high-margin revenue stream could have years of rapid growth still ahead of it.
Buy for the long term
To be perfectly clear, I'm saying that AMD and Alphabet both look attractive from a long-term perspective. I have absolutely no idea what these stocks will do over the next few weeks or months, and there's no way to know how much longer the recent market turbulence will persist. But these are two rock-solid businesses with great leadership and massive opportunities, and investors who buy now could be very glad they did in a few years.
