Five Technology Stocks to Consider During the Current Market Dip
With the Nasdaq Composite decreasing over 13% from its all-time highs seen in late 2024, the current market sell-off is generating attractive long-term buying opportunities in the technology sector. Investors might find compelling options among several growth stocks during this downturn.
1. Nvidia
Nvidia (NASDAQ: NVDA) leads the field in artificial intelligence (AI) infrastructure, thanks to its graphics processing units (GPUs). These GPUs provide the essential processing power for training AI models and running inference. The company has seen incredible growth, with revenues more than doubling in its fiscal years 2024 and 2025 (which ended in January).
As investment in AI infrastructure grows, Nvidia is poised to benefit significantly. The ongoing race in AI is prompting companies to invest heavily in building AI data centers, and Nvidia remains at the forefront.
Moreover, Nvidia has established a substantial lead in the GPU market through its CUDA software platform, securing about 90% market share. This advantage arose from a head start against its main competitor, Advanced Micro Devices. Currently, Nvidia’s stock is trading nearly 22% below the record high achieved in early January, indicating it could present a strong growth opportunity.
Image source: Getty Images.
2. Broadcom
Broadcom (NASDAQ: AVGO) may not have Nvidia’s dominance in the mass GPU markets, but it is carving out a niche with custom AI chips. As Nvidia’s costs rise, more businesses are turning to Broadcom to create specific AI chips tailored for use alongside GPUs. These custom chips, while time-consuming to develop, offer better performance and cost efficiency for targeted operations.
Broadcom’s three primary AI chip customers collectively face a serviceable addressable market estimated between $60 billion and $90 billion by fiscal 2027. Furthermore, the addition of four new customers, including Apple, opens more potential avenues for revenue. Although Broadcom may not capture the entire market share, the current dip—resulting in a 23% decline from its December 2024 highs—allows investors a favorable entry point.
3. Alphabet
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) remains a frontrunner in digital advertising, with its platforms Google Search and YouTube leading the charge. Additionally, it is the third-largest player in cloud computing and is making strides in quantum computing and autonomous driving through Waymo.
Despite some concerns regarding AI’s impact on its advertising model, Alphabet has not experienced any significant adverse effects on its growth. Its vast user base and its rich history of search data position it advantageously. The integration of AI opens avenues for new advertising formats, allowing Alphabet to monetize more search results than previously possible.
Moreover, Alphabet’s cloud computing revenue soared by 30% last quarter, with segment income increasing by 142%. A partnership with Broadcom for developing custom chips affords the company a cost edge as it expands its data center infrastructure. With the stock down about 21% from early last month’s highs, this period presents a valuable opportunity for long-term investment.
4. Salesforce
Salesforce (NYSE: CRM) is positioning itself to lead in agentic AI, whereby AI agents undertake tasks on behalf of users with minimal human oversight. This technology could revolutionize business operations like customer service and market analysis.
The company launched Agentforce, which includes several ready-to-use AI agent solutions and offers customization through user-friendly no-code and low-code tools. Recently, its AgentExchange marketplace has gained traction, featuring over 200 partners.
Agentforce operates on a consumption model that charges $2 for each interaction, presenting a substantial revenue opportunity. Since its introduction in October, Salesforce has gained around 5,000 Agentforce customers, with 3,000 already paying. The stock’s recent decline—down nearly 26% since December 2024—makes now a strategic time for investors to consider acquiring shares.
5. GitLab
GitLab (NASDAQ: GTLB) has seen its stock off about 31% from early February highs. GitLab provides a growing DevSecOps (development, security, and operations) platform, which integrates cybersecurity into software development. This high-margin subscription business is perfectly positioned to leverage AI advancements.
Growth is primarily fueled by customers upgrading to its more advanced Ultimate platform, which now constitutes around half of its annual recurring revenue (ARR). GitLab’s Dedicated solution, exclusive to the Ultimate platform, has become increasingly popular, offering clients data isolation and meeting regional data residency requirements.
GitLab’s Revenue Growth and New Customer Surge Amid Market Challenges
GitLab’s innovative AI-driven add-on, GitLab Duo, is significantly boosting its revenue by providing programming assistance through coding suggestions and automation. This solution not only aids developers but also enhances GitLab’s ability to attract new customers while expanding its presence within its existing base.
Strong Customer Growth Metrics
Last quarter, GitLab reported a striking 29% increase in enterprise customers with an annual recurring revenue (ARR) of $100,000 or more. Furthermore, the company achieved an impressive dollar-based net retention rate of 123%. This statistic implies that the company’s existing customers are increasing their spending compared to the prior year, which is a positive sign despite any customer turnover.
Overall, GitLab’s revenue surged by 29% in the last quarter. This marks the sixth consecutive quarter of revenue growth ranging from 29% to 33%, showcasing sustained demand for its offerings despite broader market fluctuations.
Investment Opportunities in a Declining Market
The recent sell-off in the market presents an opportunity for investors seeking high-growth stocks. GitLab appears to be positioned well in this environment.
For investors who frequently worry about missing prime investment opportunities, there are recurring instances when financial analysts issue a “Double Down” recommendation for companies they believe are poised for significant growth. If you feel you’ve missed your chance to invest, current market conditions may provide a favorable entry point.
- Nvidia: If you invested $1,000 when the recommendation was made in 2009, you would now have $299,728!
- Apple: A $1,000 investment from 2008 would be worth $39,754 now!
- Netflix: If you invested $1,000 in 2004, your investment would have grown to $480,061!
Currently, “Double Down” alerts are being issued for three exceptional companies, signaling a promising time to consider these investments.
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*Stock Advisor returns as of March 14, 2025
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Geoffrey Seiler has positions in Alphabet, GitLab, and Salesforce. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, GitLab, Nvidia, and Salesforce. They also recommend Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
