The recent market pullback has created some nice bargains in the technology space. Let's look at three stocks you can buy before the next bull market run.
1. Nvidia
Trading at a forward price-to-earnings ratio (P/E) of 23 times based on this year's analyst estimates and a price/earnings-to-growth (PEG) ratio of near 0.4, Nvidia (NVDA +1.73%) finds itself in the bargain bin. Stocks with PEGs under 1 are typically considered undervalued, and it's difficult to find companies that have been growing as quickly as Nvidia.
NASDAQ: NVDA
Key Data Points
Nvidia has seen explosive growth, with revenue surging 383% the past two years from $27 billion in fiscal 2023 to $130.5 billion in fiscal 2025 (ended January). Meanwhile, analysts are expecting the company to grow its revenue by another 50% this fiscal year.
This growth is being powered by the artificial intelligence (AI) infrastructure buildout, as Nvidia's graphics processing units (GPUs) are the preferred semiconductor chip used to provide the processing power needed to help train AI models and run inference. Meanwhile, in order to continue to advance AI models, these large language models (LLMs) need more and more processing power for training.
This continues to lead to a surge in demand for Nvidia's chips, which are considered the best due to their hardware specs and because its CUDA software platform provides several libraries and tools to easily program its chips for various AI and high-performance computing tasks. As a result, the company has a more than 80% market share in the space. With AI infrastructure spending continuing to grow, Nvidia is well positioned to be a big AI winner.
Image source: Getty Images.
2. Taiwan Semiconductor Manufacturing
Another chip-related stock in the bargain bin is Taiwan Semiconductor Manufacturing (TSM 0.84%), or TSMC for short. The stock trades at a forward P/E of just 18 times and a PEG of around 0.6.
NYSE: TSM
Key Data Points
The largest semiconductor contractor in the world, the company has become an invaluable part of the semiconductor value chain. It has several notable advantages over its competition, including much better economies of scale, technological expertise, and a well-trained work force. It's also a pure-play foundry, unlike Intel or Samsung, so it has no conflicts of interests with customers.
This has helped the company become the leader in the space, especially with regard to advanced chips. Its ability to shrink chip sizes, which increases power while lowering power consumption, has made it an important partner to the largest chip designers in the world, including Nvidia and Apple. It also allowed TSMC to push price increases, which in turn is helping drive margin expansion.
With AI chip demand continuing to soar, TSMC is set to see its strong growth continue. It's investing in capacity to try to keep up with demand, while also having pricing power, which is a strong combination.
3. Alphabet
Trading at a forward P/E of just 17, Alphabet (GOOGL +0.66%) (GOOG +0.41%) is another leading tech stock on the clearance rack. The company's Google search engine holds about a 90% global market share, making it one of the premier digital advertising platforms in the world. However, the company is about much more than search. YouTube is the most watched video streaming platform and the fourth-largest digital advertising platform in the world in its own right.
Meanwhile, the company's cloud computing unit, Google Cloud, is its fastest-growing segment, with revenue up 30% last quarter while segment operating income soared 142%. Google Cloud is known for its expertise in data analytics and machine learning, and it has a number of tools for AI development, data analysis, and data processing that make it an attractive choice for customers. It is also at the forefront of containers (packages containing things like code and libraries that apps need to run) and Kubernetes, which is the platform used to orchestrate containers.
NASDAQ: GOOGL
Key Data Points
The pending acquisition of Wiz, meanwhile, will increase Alphabet's cybersecurity offering and help it become a leader in cloud security. Given the importance of Google Cloud and Wiz's strength in Kubernetes cybersecurity, this is a powerful acquisition that helps set the company's offering apart from the competition.
Alphabet is also making strong inroads in the robotaxi market with its Waymo unit. The company has started to see market share gains in established markets and is beginning to expand to more cities across the U.S. It is testing its robotaxis in 10 new cities this year and has plans to launch services in Miami, Atlanta, and Washington, D.C. within the next two years. This also includes its first international foray, into Tokyo, Japan.
Alphabet's collection of leading and emerging businesses are just too cheap to ignore at current levels.
