There’s a tech wreck going on in the market right now. The Nasdaq Composite index that is mostly comprised of tech stocks is down 10% over the last month and officially in a correction. Many well-known and formerly high-flying tech names have seen their share price fall 30% or more since the beginning of July.
The most battered tech stocks are the biggest, most profitable and most successful ones in the market. The “Magnificent Seven” mega-cap tech stocks that led the market rally in the year’s first half have gotten clobbered. So too have many stocks associated with artificial intelligence (AI), especially the microchip and semiconductor companies.
While stressful, the declines have opened up opportunities for investors to buy some great stocks on sale. Rather than fret about the share price declines, investors should take advantage and load-up. Here are three of those tech stocks worth buying in August 2024.
Dell Technologies (DELL)
The stock of Dell Technologies (NYSE:DELL) is down 27% in the last month and is currently trading 44% below the 52-week high it reached at the end of May this year. If there’s a beaten down tech stock to buy on the dip, it’s Dell. The decline in Dell stock comes despite Wall Street analysts pounding the table on the shares. Analysts at Bank of America added Dell stock to their top tier “U.S. 1 List” in July as the share price was in freefall.
Dell’s share price has been dragged lower by the market rotation out of tech stocks and as some of the hype surrounding AI fades. The company has posted strong financial results, but there are concerns that Dell is selling its high-efficiency servers that run AI models at near zero profit margins. Analysts have said that these concerns are overblown and that Dell remains a leading AI player, and the company should benefit from a global rebound in laptop and desktop computer sales.
Dell stock has a consensus “strong buy” rating and a median price target that is 58% higher than where its shares currently trade.
Advanced Micro Devices (AMD)
Chipmaker Advanced Micro Devices (NASDAQ:AMD) is another tech stock that analysts continue to stump for as its share price slides lower. Despite reporting strong quarterly financial results and continuously raising its forecast for sales of its AI chips this year, AMD stock has been knocked lower. After declining 24% since the start of July, AMD stock is only up 1% since the start of January, regardless of the year’s earlier tech stock rally.
AMD stock just can’t seem to do enough to win over investors who tend to prefer the company’s archrival and market leader, Nvidia (NASDAQ:NVDA). Yet analysts love AMD stock and are screaming themselves hoarse telling investors to buy shares. Analysts at Wells Fargo raised their price target on AMD stock to $205 per share from $190 and kept an “overweight” buy-equivalent rating.
AMD stock has a consensus “strong buy” rating and a median price target that is 36% above current levels.
Amazon (AMZN)
Admittedly, Amazon’s (NASDAQ:AMZN) most recent financial results and guidance were a mess. But there’s still plenty of reasons to be bullish on the e-commerce juggernaut, not least of which is its market leading position in cloud computing. Despite posting mixed financial results and issuing soft guidance, analysts are sticking with AMZN stock and urging investors to buy-the-dip after the share price has fallen 12% in the past month.
There’s currently a “strong buy” rating on Amazon stock with a median price target that is 32% above where the shares are currently changing hands. There isn’t a single “sell” rating on the stock. Analysts continue to like the growth they’re seeing in Amazon Web Services (AWS), the company’s cloud unit. They also praise the way in which Amazon is growing its Prime Video streaming platform. Amazon recently secured a media rights package to stream NBA basketball games this coming season as well. All that combined makes AMZN a tech stock still worth buying.
On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
