Market headwinds have rarely felt this intense. International tensions are escalating, trade networks are under severe pressure, and inflation continues to diminish consumer spending power. Investors are navigating a genuinely challenging landscape.

However, amid this volatility, there are opportunities. Following a punishing first quarter that wiped out most of late 2024’s impressive gains, we are observing a phenomenon not seen since late 2022: substantial value in a range of world-class companies. As markets trend downward in early 2025, several premier businesses are now trading at significant discounts relative to their long-term potential.

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Taking advantage of this opportunity, I am increasing my holdings in two deeply undervalued tech giants. Here’s why.

Nvidia: The Backbone of AI Available at a Rare Discount

Nvidia (NASDAQ: NVDA) stands as the world’s top designer of specialized computer chips essential for everything from gaming graphics to advanced artificial intelligence (AI) systems. Initially recognized for its graphics processing units (GPUs) focused on video games, the company has evolved into a fundamental hardware provider in the AI revolution.

Since the start of 2025, Nvidia’s shares have substantially declined, currently trading 27% below their 52-week high as of this writing. This pullback has reduced the chipmaker’s valuation to just 24 times forward earnings, half of what it was at the close of 2024. For a company extending its stronghold in AI infrastructure, this situation represents a compelling entry point.

The recent Graphics Technology Conference (GTC) reinforced my confidence in Nvidia’s long-term trajectory. Despite fierce competition, the company continues to enhance its technological edge, showcasing an impressive GPU roadmap extending from this year’s Blackwell Ultra to 2027’s Rubin Ultra architecture. CEO Jensen Huang noted that the “vast majority” of AI inference still relies on Nvidia’s hardware today.

While competitors strive to develop in-house alternatives, Nvidia’s proprietary Compute Unified Device Architecture (CUDA) software ecosystem generates significant switching costs that protect its market position. The combination of top-tier hardware and strong software positioning secures Nvidia as the critical infrastructure provider for AI development, especially when investment in AI is accelerating across various sectors.

As a takeaway for investors, the current valuation creates a rare opportunity to buy shares in what remains a foundational company in computing’s next era. Consequently, I’m actively increasing my position in this core AI stock while the discrepancy between price and potential persists.

Alphabet: Powering the Digital Economy

The digital revolution finds a significant cornerstone in Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). With its flagship Google search engine, YouTube platform, and expanding cloud service, this tech giant is pivotal in shaping information flow across the global economy.

Nonetheless, market turbulence has not spared this giant. Alphabet’s stock has fallen 28% from its 52-week high since the start of 2025. This sharp decline presents a rare buying opportunity, with shares now priced at just 17.8 times forward earnings, significantly below the S&P 500‘s 20 times forward multiple.

What makes this valuation appealing is Alphabet’s strategic positioning across high-growth sectors. The company’s dominance in search fuels its advertising business while diversifying its presence in cloud computing, where its Google Cloud Platform is gaining traction against larger competitors like Amazon and Microsoft.

Moreover, Alphabet is pursuing a $32 billion acquisition of cloud security company Wiz, potentially enhancing its cloud security offerings. While regulatory scrutiny poses a challenge, this strategic move may bolster Alphabet’s position within the rapidly expanding enterprise cloud market.

Critics raise concerns about antitrust pressures on Google’s core search business. Yet, most analysts believe potential regulatory outcomes will leave Alphabet with considerable influence in digital advertising. Furthermore, the company is investing robustly in AI to safeguard its search advantage and develop new revenue streams, especially in advanced robotics.

Given its diverse business model, strong cash generation, and strategic investments in cloud and AI, Alphabet represents an essential technology holding at an attractive valuation. Therefore, the current market weakness offers an ideal moment to establish a significant position in this enduring tech leader.

Seize This Second Chance at Potentially Lucrative Investments

Have you ever felt like you missed out on investing in successful stocks? If so, this is essential information for you.

Occasionally, our expert analyst team issues a “Double Down” Stock recommendation for firms they believe are poised for growth. If you worry you’ve missed your opportunity to invest, now is a critical time to buy before it’s too late. The numbers illustrate the potential:

• Nvidia: If you invested $1,000 when we doubled down in 2009, you’d have $285,647!*
• Apple: If you invested $1,000 when we doubled down in 2008, you’d have $42,315!*
• Netflix: If you invested $1,000 when we doubled down in 2004, you’d have $500,667!*

We are currently issuing “Double Down” alerts on three remarkable companies. This opportunity may not arise again soon.

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*Stock Advisor returns as of April 1, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, serves on The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is also on The Motley Fool’s board. George Budwell has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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.