Technology stocks have been struggling in recent days. Some quality stocks may have sold off too aggressively. What are the best bargain opportunities right now?
The stock closed at 25,169.50 on Wednesday, June 10, down 1.98%, marking its fifth loss in the last six sessions. The tech-heavy index is now about 7% below its June 2 record.
Markets were pressured by renewed geopolitical tensions after President Trump said negotiations with Iran were taking too long and threatened further strikes. The comments pushed oil prices higher and weighed on risk sentiment, with technology, industrials and cyclical stocks among the biggest losers.
The latest decline follows a broader decline in technology stocks. Last Friday, the Nasdaq fell more than 4% due to a sharp sell-off in semiconductor stocks. Investors were disappointed after Broadcom failed to raise its AI chip revenue outlook despite high expectations, triggering weakness across the sector.
Macroeconomic concerns added to the pressure. US inflation reached 4.2% in May, its highest level in three years, reducing expectations of a rate cut by the Federal Reserve. At the same time, the May jobs report showed stronger-than-expected hiring, reinforcing concerns that interest rates could stay higher for longer.
Despite the recent weakness, several factors could support a recovery. Any easing of tensions between the United States and Iran could lower oil prices, ease inflation fears and improve the outlook for growth stocks. At the same time, some analysts believe the selloff has created opportunities in quality technology companies that continue to benefit from long-term AI trends.
As a result, several Nasdaq-listed technology stocks are now trading at significant discounts to valuation estimates while still maintaining strong underlying fundamentals.
9 Nasdaq technology stocks show upside potential of +20% to +72% following their correction
To identify them, we turned to the Investing.com filter, using the following criteria:
Market: Nasdaq Composite
Sector: Technology
Drop of more than 5% over one week
Upside potential of more than 20%…
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