American technology stocks experienced a strong rebound on Monday, with an increase of 2.27% at the close. climbed 5.79%, while jumping 8.83%, leading the gains.
This renewed optimism came from progress in Washington toward ending the longest government shutdown in U.S. history. A compromise to restore federal funding cleared its first hurdle in the Senate Sunday evening, although final congressional approval is still pending.
The rebound in tech stocks is also due to bargain hunting, with many investors viewing last week’s sharp decline as a buying opportunity. The Nasdaq fell just over 3% last week, while Nvidia fell 7% and Palantir fell 11.2%.
Given Monday’s strong rally, buying big tech stocks during falling markets still appears to be a valid strategy. Nvidia and Palantir appear to be promising choices in this regard, although investors should exercise caution. Both stocks remain highly valued based on InvestingPro’s fair value estimates, which suggest a potential downside risk of around 9% for Nvidia and over 50% for Palantir.
10 Struggling US Tech Stocks Now Showing Signs of Recovery
Using Investing.com’s screening tool, we searched for other big U.S. tech stocks that have fallen sharply in recent weeks but still appear undervalued relative to their estimated fair value. The goal was to identify companies that analysts believe have strong rebound potential, based on both weak pricing and strong fundamentals.
Here is how we configure the filter for this analysis:
Nasdaq Composite member stocks
Technology sector Market capitalization greater than 10 billion dollars
Decline of more than 5% over one month Potential increase of more than 10% according to InvestingPro Fair Value Potential upside of more than 25% according to the average analyst target
This research allowed us to identify 10 actions:
ATTENTION: Although the basic functions of the Investing.com screener are available for free, in this research we used metrics reserved for subscribers to the InvestingPro, Pro+ plans.
These values, which fell between 5.9% and 20.5% over the last month, now appear undervalued by 12% to…
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