Market Discounts Create Opportunities for Tech Stock Investors

Currently, there are numerous discounts available in the stock market.

In March, stocks were already declining due to weakening consumer sentiment and concerns about an economic slowdown. However, major indexes experienced a sharp drop in April, largely due to President Donald Trump’s tariff plan, which introduced significant market uncertainty. The subsequent escalation of trade tensions with China has further complicated matters. Although the market reacted positively to Trump’s 90-day tariff pause, many business owners and investors still face considerable uncertainty.

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Experienced investors understand that sell-offs like the current one can be stressful; however, they also create attractive buying opportunities. On that note, let’s examine two tech stocks that appear promising after experiencing substantial declines.

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1. The Trade Desk

As I write this, shares of The Trade Desk (NASDAQ: TTD) are down 64% from their all-time high, following a slump since February. This decline has two main causes.

First, The Trade Desk reported weaker-than-expected earnings for its fourth quarter in February, missing its own revenue guidance for the first time since becoming a public company. Following this disappointing report, the stock continued to fall due to fears of an economic slowdown linked to tariffs.

While The Trade Desk is not directly affected by tariffs as a service-based business, the advertising sector generally reacts to the economy’s overall health. This relationship explains the ongoing sell-off in the stock since the earnings report.

The Trade Desk demonstrated resilience during the last advertising slump in 2022, where it maintained revenue growth of over 20% while other giants like Alphabet and Meta Platforms struggled. Currently, the stock is at one of its lowest valuations in the last five years, trading at around $50 per share. It carries a price-to-earnings ratio of just 30, reflecting investor concerns about possible earnings declines amid a potential economic downturn. Nevertheless, considering the company’s performance in 2022, investors should weigh its long-term potential.

If CEO Jeff Green is correct in attributing the fourth-quarter miss to internal issues rather than fundamental challenges, this stock could become a strong long-term investment.

2. Nvidia

In the world of investing, originality isn’t a requirement; focusing on high-quality stocks often yields positive results.

Nvidia (NASDAQ: NVDA) is well-known as a leader in the AI sector of chip technology. Although the stock has decreased by 26% from its peak due to economic concerns, its revenue growth trajectory remains strong.

Fortunately, Nvidia’s business shows resilience against tariffs. Notably, “bare die” semiconductors—individual chips that are not yet in products—are currently exempt from tariffs, and the company is likely to benefit from government support for domestic chip manufacturing.

Furthermore, demand for Nvidia’s products, particularly in AI, is expected to persist despite economic challenges. For instance, just days before the tariff announcement, OpenAI raised $40 billion with a valuation of $300 billion, highlighting ongoing investor confidence in AI technology.

The stock is currently trading with a forward price-to-earnings ratio below 25, providing a safety buffer even if growth does not meet expectations. Even in a slower growth environment, Nvidia appears well-positioned to continue as a leader in the AI revolution.

Don’t Miss this Second Chance at a Potentially Lucrative Opportunity

Have you ever felt that you missed out on buying top-performing stocks? This might be your chance.

Occasionally, expert analysts issue a “Double Down” stock recommendation for companies they believe are on the brink of significant gains. If you feel you’ve missed your opportunity to invest, now may be the best time to consider buying before it’s too late. Here are some compelling figures:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $287,099!
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $38,396!
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $502,231!

Currently, we are issuing “Double Down” alerts for three exceptional companies, available when you join Stock Advisor. Don’t miss this unique opportunity.

See the 3 stocks »

*Stock Advisor returns as of April 14, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokesperson for Facebook, and sister to Meta Platforms CEO Mark Zuckerberg, is also part of The Motley Fool’s board of directors. Jeremy Bowman holds positions in Meta Platforms, Nvidia, and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Nvidia, and The Trade Desk. 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.