With the Nasdaq Composite down more than 13% from all-time highs reached in late 2024, this market sell-off is creating some potentially nice long-term buying opportunities in the technology sector.
Let's look at five growth stocks investors might want to consider scooping up during this dip.
1. Nvidia
Nvidia(NASDAQ: NVDA) is the leader in artificial intelligence (AI) infrastructure, where its graphic processing units (GPUs) help provide the processing power needed to train AI models and run inference. The company's growth has been spectacular, with its revenue more than doubling in both its fiscal years 2024 and 2025 (ended in January).
As long as AI infrastructure spending continues to grow, Nvidia is set to continue to be the biggest beneficiary. Currently, the best way to advance AI models is through more processing power. So, as the AI race continues, companies are committing more and more money to build out AI data centers.
Nvidia, meanwhile, has created a wide moat in the GPU space through its CUDA software platform, helping it take about a 90% market share. The company got about a 10-year jump on the software side against its biggest rival, Advanced Micro Devices, and the CUDA moat is alive and well today, making Nvidia a great growth stock to buy.
Nvidia stock is trading down nearly 22% from all-time highs reached in early January, but it still has plenty of growth potential, and that makes its price even more of a bargain.
Image source: Getty Images.
2. Broadcom
While Nvidia owns the mass-merchant GPU market, Broadcom(NASDAQ: AVGO) is carving out a nice niche with custom AI chips. Given Nvidia's high prices, more companies are turning toward Broadcom to help develop customer AI chips that can be used in conjunction with GPUs. These custom chips take time to develop but tend to perform better and be more cost-effective when used for a very narrow set of tasks.
Broadcom currently has three main AI chip customers, which it says combined have a serviceable addressable market of between $60 billion to $90 billion for its fiscal 2027. In addition, it has recently added four more newer customers, including Apple. While Broadcom won't capture all of this spending, with some inevitably going to Nvidia, it still is a big opportunity for the company.
The recent sell-off (the stock is down about 23% from all-time highs set in December 2024) lets investors get into the stock at a nice price.
3. Alphabet
Alphabet(NASDAQ: GOOGL)(NASDAQ: GOOG) is the market leader in digital advertising through its Google search and YouTube streaming platforms. The company also operates the third-largest cloud computing business and is also a leader in the emerging fields of quantum computing and autonomous driving (Waymo).
While some investors worry about the impact of AI on its search business, there has been no meaningful effect on its growth thus far. Meanwhile, the company's huge user base, long history of search data, and an extensive client list of advertisers give it a nice advantage. AI should become a good opportunity for the company, as it should be able to create new ad formats that can help monetize the AI Overviews it now generates. Traditionally, Google has only served ads on about 20% of its search results, so this could be a big new untapped market.
In addition, the company is seeing great growth with its cloud computing unit, which saw revenue climb 30% last quarter and segment income soar 142%. The company was the first to develop a custom chip with the help of Broadcom, giving it a nice cost advantage moving forward as it builds out its data center infrastructure to help meet soaring demand. The recent sell-off (the stock is down about 21% from highs set early last month) is a great time to get into the stock for the long term.
4. Salesforce
As AI continues to develop, Salesforce(NYSE: CRM) is looking to become the leader in agentic AI, in which AI agents will perform tasks at a user's behest without the need for much supervision from humans. This has a lot of real-world applications for businesses because these agents could handle customer service issues or analyze market data to help optimize marketing campaigns.
Salesforce leads the way in agentic AI with the launch of Agentforce, which includes several out-of-box AI agent solutions. Customers can also customize agents through the use of no-code and low-code tools built into the platform while placing guardrails on what the agents can and cannot do. Meanwhile, the company recently launched its AgentExchange marketplace with over 200 partners to expand its use cases.
Agentforce is a consumption product that costs $2 per interaction, so the opportunity for Salesforce is huge. Thus far, customers have been flocking to try the product, with the company gaining 5,000 Agentforce customers, including 3,000 paying, since its introduction in October. The recent drop in the stock's price (down nearly 26% since December 2024) opens up a nice opportunity to jump into the name.
5. GitLab
Trading off about 31% from early February highs, GitLab(NASDAQ: GTLB) is a fast-growing DevSecOps (development, security, and operations) platform that helps customers develop software while integrating cybersecurity throughout the process. This is a high-margin subscription business that is benefiting from AI.
Growth is being driven by customers upgrading to its higher-tier Ultimate platform, which now represents about half of its annual recurring revenue (ARR). Meanwhile, its Dedicated solution, which is only offered on the Ultimate platform, has also been gaining strong traction. Dedicated offers customers data isolation and regional data residency. In addition, its AI-powered GitLab Duo add-on offering, which helps programmers complete their assignments by offering coding suggestions and automation, has also been helping drive revenue.
This is helping GitLab both boost its number of new customers and grow within its existing customer base. Last quarter, it saw its number of enterprise customers with an ARR of $100,000 or more climb 29%, while its dollar-based net retention was a robust 123%. Numbers over 100% indicate that existing customers spent more with the company than the year before (including the impact of any churn). Overall, its revenue rose 29% last quarter, marking its sixth straight quarter of between 29% to 33% revenue growth.
The sell-off is a great opportunity to pick up this high-growth stock.
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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. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
