The Nasdaq Composite is down 9.1% this year and back on Monday morning it was still trading in correction territory. Several stocks have been bouncing back, but there are still some intriguing buys available right now that may set you up for some strong returns in the future.
Three stocks that are trading down at least 5% since the start of 2025 and that have a lot of upside are Alphabet (GOOG 0.93%)(GOOGL 0.86%), Advanced Micro Devices (AMD 1.38%), and Apple (AAPL +0.07%). Here's why you shouldn't hesitate to buy these tech stocks for the long haul.
NASDAQ: GOOG
Key Data Points
1. Alphabet
As of Tuesday afternoon, Alphabet's stock was down 10.2% since the start of the year. Concerns around tariffs and worsening economic conditions are weighing on its business, as are other factors.
The company recently announced plans to buy cybersecurity tech company Wiz for $32 billion. The move would dramatically expand Alphabet's offerings and equip it with a new growth opportunity. However, oftentimes when there's an acquisition, shares of the acquiring company fall as investors worry about valuation. Another potential issue weighing on Alphabet stock is the threat of a government-mandated breakup. Investors may have been hoping that under President Donald Trump, the government may be more friendly to the tech industry concerning antitrust measures. But the Department of Justice is reportedly still calling for the breakup of the tech giant due to its monopoly, which may lead to it selling its Chrome browser.
Alphabet's stock is trading at a relatively modest 21 times its trailing earnings, which looks cheap. The acquisition of Wiz may result in significant growth opportunities for the business. And while a breakup may sound like bad news, it may not necessarily turn out that way. Some analysts believe it could unlock more value through higher individual valuations for its various business segments, and by allowing separate business units to operate more efficiently.
As a leading company in not only search but also video sharing, and with more growth opportunities out there to pursue in cloud computing, Alphabet still looks like an unstoppable investment to buy and hold for the long term.
NASDAQ: AMD
Key Data Points
2. Advanced Micro Devices
Chipmaking company Advanced Micro Devices, also known as AMD, is trading down the least on this list, just 5.5% this year as of Tuesday afternoon. But its decline has been going on for a while as it's down over 36% in the past 12 months. While the chipmaker should be doing better amid the growth in artificial intelligence (AI), it has been overshadowed by its more dominant rival, Nvidia.
Question marks about how competitive AMD's AI chips will be against Nvidia have left some investors on the sidelines. But given just how massive the market may be, there's going to be significant demand for AI chips, and there's going to be plenty of room for multiple companies to do well and grow. Estimates from Grand View Research project that by 2030, the AI chip market will be worth more than $323 billion -- up from $71 billion in 2024.
As dominant as Nvidia is today, investors shouldn't forget about AMD. Its growth rate has been picking up, with sales growing by 24% year over year for the last three months of last year, as its top line hit $7.7 billion. AMD may be lagging behind Nvidia but with a lot more growth still on the horizon for the company, this may be one of the most underrated AI stocks to buy right now.
NASDAQ: AAPL
Key Data Points
3. Apple
One company that may be lagging in AI even more than AMD is Apple. Investors and consumers alike have been frustrated with its slow rollout of AI capabilities on its new phones. The company has restructured its AI team after recently announcing that new AI features for its assistant, Siri, won't be coming until next year.
It's bad news for Apple in the short run, but it's not a development I'd be too concerned about as an investor. Unless Apple customers are disgruntled enough that they are going to leave the entire ecosystem and go to Android (which Alphabet owns), then it's likely not going to have a devastating effect on the business over the long haul. The company has often lagged behind rivals when it comes to launching new tech features and while being slow with AI features is disappointing, it doesn't change the fact that this is a hugely profitable business with a massive, loyal customer base. Over the trailing 12 months, Apple has reported more than $96 billion in profit.
Apple's stock is down 10.7% this year as of Tuesday afternoon, but odds are the business will recover from the current headwinds. This is still an excellent growth stock to buy and forget about.
