Tech stocks could be poised for a rebound after several weeks of decline. The highly anticipated Nvidia (NASDAQ:NVDA) has finally lived up to the high expectations that had been building up.
Earnings per share came in at $1.30 versus a forecast of $1.25. Revenues reached $57 billion, ahead of the Street’s expected $54.89 billion. The outlook also turned out to be better than most predictions.
Nvidia shares rose more than 5% after hours. The move allowed other big tech names to expand and paved the way for a broader recovery on Thursday.
Nvidia is the world’s largest company and the main driver of the AI bull market of recent years. Its latest results brought great relief to investors who were worried about the relevance of technology valuations.
The spotlight remains on the biggest names in AI and the broader technology sector. However, experienced investors understand that the strongest openings rarely appear in these widely followed stocks.
Nvidia’s numbers confirm that the AI rally still has real strength behind it. Despite this, the valuations of big tech names sit well above their fundamentals. Nearly all Magnificent 7 companies are trading above their InvestingPro fair value, which combines several established valuation models.
Today’s rise will only push these stretched valuations even higher.
That’s why investors looking for bigger rebound potential may want to look beyond the familiar giants. The most attractive openings are in lesser-known tech names, particularly those trading at prices well below those of Nvidia and its peers.
9 Beaten Tech Stocks Poised for an Explosive Rebound
To detect these opportunities, we used Investing.com’s filter and filtered out US stocks that met the following criteria:
Technology sector Market capitalization greater than 1 billion dollars
Decline of more than 10% over one month Stocks undervalued by at least 40% according to InvestingPro Fair Value Upward potential of at least +40% according to the average analyst target.
This research identified 9 actions:
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