Among tech stocks with strong upside to the average price target and primarily favorable analyst ratings are Nvidia and Alphabet.
Over the last two weeks, tech stocks have fallen along with the rest of the stock market.
Uncertainty has unleashed a carnage on Wall Street since President Donald Trump proposed sweeping tariffs on April 2. The Roundhill Magnificent Seven exchange-traded fund, or MAGS, has lost 10% since that day, while the S&P 500 SPX has lost 6.9%.
Tech equities linked to hardware sales have experienced a sharp decline as a result of the tariffs, which have increased uncertainty. With equities like Nvidia Corp. (NVDA) down 8%, Dell Technologies Inc. (DELL) down 11%, and Micron Technology Inc. (MU) down around 22% since April 2, their decline has been particularly severe.
The chaos hasn’t ended yet. Since Nvidia revealed late Tuesday that it would need to secure a license from the US government in order to ship its H20 chips to China, Hong Kong, and Macau, the company’s stock has been soaring. Since the close of business on Tuesday, the stock has dropped more than 9%.
According to Wall Street analysts, the decreases may have been a little too sharp for some high-quality brands, but in other situations, the selling might have been justified because the cost of imports and even exports will reduce hardware businesses’ profit margins. Although many of them have been reducing their price targets in order to account for tariff expenses, they are still generally maintaining their optimistic ratings, and their revised targets suggest that there is still a significant amount of potential for these companies to rise.
This might be one of those rare “buy the dip” opportunities for investors who have a high risk tolerance and remain composed.
Investors have given several of the names on the list a negative discount because they are doubtful in the near future. But because of things like the companies’ growth paths or market share, analysts think comebacks might be coming.
This year, Micron’s stock (MU) has dropped 18% as a result of macroeconomic uncertainties. However, according to a Baird analyst, the data-storage manufacturer will benefit from a growing total addressable market for high-bandwidth memory in 2025. According to FactSet statistics, the company’s earnings per share are projected to increase to $8.37 in 2025 and to $11.23 in 2026. In the previous calendar year, its EPS was $3.20.
According to another Baird analyst, the uncertainty around tariffs and the future of clean-energy tax credits under the Trump administration has contributed significantly to the roughly 29% decline in First Solar Inc.’s stock (FSLR) so far this year. Nonetheless, the manufacturer of solar equipment has a strong sales growth projection, which could also assist increase its earnings per share. According to FactSet statistics, analysts anticipate EPS of $17.86 in 2025, up from $12.02 the year before.
The stock of Facebook parent firm Meta Platforms Inc. (META) has suffered due in part to investors reducing their risk in an unpredictable economic climate and in part to the company’s ongoing antitrust trial, which could lead to its dissolution. Nonetheless, the social media behemoth has profited from advertising sales, which accounted for the majority of its $165 billion in 2024 income. Due to the stock’s 14% decline this year, its projected price-to-earnings ratio is now close to value at about 21.
This year, Alphabet Inc.’s stock (GOOG) (GOOGL) has dropped 19%, and the parent firm of Google is currently embroiled in several antitrust disputes with the government. A judge declared a portion of its advertising technology business to be a monopoly on Thursday. Another judge ruled last year that its search operation was anticompetitive in a different instance. The penalties, including whether the corporation may have to sell its Chrome browser or a portion of its ad-tech business, are what investors are waiting to find out. Nonetheless, Baird analysts have recently upheld their optimistic assessment of the stock due to Alphabet’s size, market dominance, and growth trajectory.
