Four Tech Stocks to Buy Amid Market Volatility
With recent market instability driven by tariffs and trade challenges, several top tech companies are now trading at more appealing valuations than they were just a few months ago. This article examines four leading tech stocks that may be worth considering for long-term investment. Each stock has a forward price-to-earnings (P/E) ratio below 22, yet they each possess substantial growth potential that could justify higher valuations.
Where to invest $1,000 right now? Our analyst team has unveiled what they believe are the 10 best stocks to buy today. Learn More »
Pinterest (P/E of 13.8)
Pinterest (NYSE: PINS) operates an online vision board with over 550 million monthly active users (MAU) globally. While it has historically lagged behind other social media platforms in monetizing its audience, CEO William Ready has focused on enhancing the platform’s technological capabilities and increasing its shoppability since taking leadership nearly three years ago.
Pinterest sees significant opportunity in monetizing its user base, particularly in regions outside the U.S. and Europe, where over half of its users reside. A partnership with Google aims to better target and tap into these markets, with last quarter’s revenue from international markets rising by 44%.
Additionally, the company is banking on the Performance+ platform, introduced last fall, to drive growth. This platform leverages automation and artificial intelligence (AI) to streamline campaign creation, enhance creative strategies, target users effectively, and optimize bidding. Overall, this initiative could boost ad effectiveness and attract new advertisers.
Pinterest’s current stock price offers long-term investment potential.
Alphabet (P/E of 16.3)
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is most recognized for its Google search engine, which plays a pivotal role in its expansive advertising ecosystem. Additionally, Alphabet owns YouTube, which ranks as the fourth-largest digital advertising platform worldwide. Google provides ads through its Ad Manager platform, helping companies like Pinterest optimize their monetization strategies.
Beyond advertising, Alphabet boasts rapid growth in non-advertising sectors. Google Cloud, for instance, is expanding by managing AI workloads for clients and developing their AI capabilities. The company has made strides in custom AI chip technology and leads the U.S. robotaxi sector through Waymo, while also making headway in quantum computing with its Willow chip.
The diverse portfolio of Alphabet’s businesses suggests that its stock is currently undervalued.
Image source: Getty Images
Nvidia (P/E of 21.6)
No other company has benefited from the AI boom quite like Nvidia (NASDAQ: NVDA), experiencing revenue growth of over 380% in the last two years. Demand is being driven by data center operators utilizing its graphic processing units (GPUs) for AI initiatives. Major cloud providers, such as Alphabet, are investing heavily to expand data center capacities to keep pace with rising AI demand.
Other industry leaders like Meta Platforms, OpenAI, and xAI are also investing in infrastructure to enhance AI models. Increasing computing power is essential for advancing AI, which drives the demand for more GPUs. Nvidia’s CUDA software platform enhances the scalability and efficiency of training AI models, giving it a strong competitive edge, with over 80% market share in the GPU segment.
Given that the AI market is still in its infancy, Nvidia has substantial growth prospects ahead. Thus, its stock appears attractively priced under current conditions.
Salesforce (P/E of 21.9)
Salesforce (NYSE: CRM) leads the customer relationship management (CRM) market and is pivoting towards agentic AI for its next growth catalyst. One of its primary advantages is providing users with a unified view of data, which enhances real-time insights and forecasting capabilities. The integration of AI agents into the Salesforce ecosystem allows customers to leverage AI for customer service, marketing, and sales enhancement.
Salesforce also offers sector-specific pre-built AI agents for areas such as retail, healthcare, and financial services, while allowing users to create customized agents using low-code and no-code tools. The recently launched AI agent marketplace hosts over 200 partnerships to expand functionality and use cases for the AI agents.
Agentforce charges based on usage, priced at $2 per conversation. If the efficiency of these agents can be proven, it could significantly drive growth for the company. Initial demand has been promising, with 3,000 paid customers already onboarded since launch.
Given its substantial potential and relatively low stock price, Salesforce presents a promising long-term investment opportunity.
Should you invest $1,000 in Nvidia right now?
Before purchasing shares of Nvidia, it’s worth considering:
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Suzanne Frey, an executive at Alphabet, serves on The Motley Fool’s board of directors. Randi Zuckerberg, a former Facebook executive and sister to Meta Platforms CEO Mark Zuckerberg, is also on the board of The Motley Fool. Geoffrey Seiler has holdings in Alphabet, Pinterest, and Salesforce. The Motley Fool recommends Alphabet, Meta Platforms, Nvidia, Pinterest, and Salesforce, and has positions in these companies.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
