Investors Find Long-Term Opportunities in Tech Amid Tariff Concerns

This year, many investors have turned away from high-growth tech stocks due to the unpredictable tariffs imposed by the Trump administration, which have dampened the market’s enthusiasm for riskier investments. However, those able to focus on long-term potential may still find promising buying opportunities worth consideration.

Identifying Strong Investment Candidates

Investors should seek stocks that demonstrate strong growth potential, competitive advantages, and a robust history of weathering economic downturns. Notable stocks in this category include Broadcom (NASDAQ: AVGO), Meta Platforms (NASDAQ: META), and CrowdStrike (NASDAQ: CRWD). These companies continue to hold promise despite recent market volatility.

1. Broadcom (NASDAQ: AVGO)

Broadcom, formerly known as Avago, is renowned for its semiconductor and infrastructure software offerings. Their semiconductor segment provides various chips for mobile, wireless, networking, data storage, and industrial applications, while the infrastructure segment features both on-premise and cloud-based software.

Over the last decade, Broadcom has seen rapid expansion, largely driven by increasing demand for networking and optical chips in the AI sector. In fiscal 2024, sales for AI-oriented chips surged more than threefold, accounting for about 25% of total revenue.

From fiscal 2019 to fiscal 2024, Broadcom’s revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew at compound annual growth rates (CAGR) of 18% and 20%, respectively. This growth persisted despite challenges from the pandemic, inflation, rising interest rates, and geopolitical tensions. While tariffs may pose short-term challenges, Broadcom’s scale and diversity offer substantial protection against prolonged downturns.

Looking ahead, analysts project a CAGR of 17% for revenue and 21% for adjusted EBITDA from fiscal 2024 to fiscal 2027. The ongoing demand for AI chips, coupled with expansion in cloud and cybersecurity services through acquisitions, indicates a strong future for Broadcom. Currently, the company has an enterprise value of $948 billion and is valued at 23 times this year’s adjusted EBITDA, positioning it as a solid investment in the growing AI and cloud sectors.

2. Meta Platforms (NASDAQ: META)

Meta, which encompasses Facebook, Instagram, Messenger, and WhatsApp, stands as the largest social networking entity, boasting 3.43 billion daily active users across all its platforms. This extensive user base generates significant data for targeted advertising, a primary revenue source. The Reels feature provides a competitive edge against TikTok while new virtual-reality (VR) and augmented-reality (AR) devices are in development for the emerging mixed-reality market.

Despite facing significant hurdles, including changes to Apple’s iOS that limited data access for targeted advertising, Meta has adapted effectively. They’ve focused on gathering first-party data and expanding Reels, while also attracting increased ad spending from Chinese gaming and e-commerce companies.

Between 2019 and 2024, Meta’s revenue and earnings per share (EPS) experienced CAGRs of 18% and 30%. The total daily active users more than doubled in this period, allowing Meta to maintain its position as a leading advertising platform, reaching over 40% of the global population daily.

For the 2024 to 2027 period, analysts expect revenue and EPS to grow at CAGRs of 13% and 11%, respectively. Despite potential short-term pressures from tariffs, Meta’s stock appears reasonably valued at 22 times forward earnings, providing additional room for future growth.

3. CrowdStrike (NASDAQ: CRWD)

CrowdStrike is a leading cloud-native cybersecurity firm that offers services entirely via the cloud, eliminating the need for on-site installations that can be cumbersome and costly. The company’s flagship platform, Falcon, provides a variety of cloud-based security modules.

As of the end of fiscal 2025, 67% of CrowdStrike’s customers utilized at least five of its security modules, a significant increase from just 33% at the end of fiscal 2020. Revenue from fiscal 2020 to fiscal 2025 grew at a remarkable CAGR of 52%, while adjusted earnings per share soared at a CAGR of 95% after achieving profitability on an adjusted basis in fiscal 2021.

Looking ahead, analysts predict a CAGR of 23% for revenue from fiscal 2025 to fiscal 2028, with expectations of the company achieving GAAP profitability by fiscal 2027. Even though economic downturns may hinder new customer acquisitions, existing demand for cybersecurity services remains strong. With an enterprise value of $102 billion, CrowdStrike’s stock is valued at 21 times this year’s sales, still presenting considerable growth potential.

Conclusion: Weighing Investment Decisions

Before committing to an investment in Broadcom or any other stock mentioned, it is essential to conduct thorough research. Various analyses highlight different top-performing stocks, and an informed approach is crucial for future growth.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, holds a position on The Motley Fool’s board of directors. Leo Sun has positions in Apple and Meta Platforms. The Motley Fool has positions in and recommends Apple, CrowdStrike, and Meta Platforms. The Motley Fool also recommends Broadcom. The Motley Fool has a disclosure policy.

The views expressed in this article are purely those of the author and do not necessarily reflect the views of Nasdaq, Inc.