EXCLUSIVE: Nvidia, Alphabet, Microsoft, Amazon, Meta - Now In The Bargain Bin After Being 'Heavily Sold Off', Says Expert
Big Tech stocks, including Nvidia, Alphabet, Microsoft, Amazon, and Meta, have been heavily sold off due to AI concerns and trade tensions, presenting a potential buying opportunity for long-term investors, according to expert Violeta Todorova. Despite a decline in stock prices, these companies' strong balance sheets make them attractive. The recent easing of tariffs on China may also boost investor confidence, although challenges remain, particularly for Nvidia amid export bans. Todorova suggests that the current market conditions could lead to significant rebounds for these oversold stocks.
The market may be moody, but bargain hunters are treating Big Tech like it is Black Friday in July.
Nvidia Corp NVDA, Alphabet Inc GOOGL GOOG, Microsoft Corp MSFT, Amazon.com Inc AMZN and Meta Platforms Inc META – the untouchables of the last bull run – have been hit by a cocktail of inflation worries, trade tension tantrums and AI-spending skepticism.
Big Tech Has Been Heavily Sold Off
But as Violeta Todorova, senior research analyst atLeverage Shares, notes, "Big technology companies with strong balance sheets and substantial cash reserves, such as Nvidia, Alphabet, Microsoft, Amazon, and Meta Platforms, have been heavily sold off, making them particularly attractive for those viewing the selloff as temporary and sentiment driven." Todorova shared her insights exclusively with Benzinga via email.
Read Also: Alphabet’s $75 Billion Bet: ‘Too Significant For Google To Pull Back’ Now, Says JPMorgan
The culprits? Mounting "concerns around AI-related capital expenditure and escalating geopolitical tensions." But according to Todorova, that pain may be the price of opportunity. "The current price weakness presents an opportunity to start accumulating."
Benzinga Pro data reveals Nvidia stock is down over 25% YTD, Alphabet about 18%, Microsoft over 10%, Amazon 18% and Meta is down over 13% YTD. Broad tech sector tracking ETFs such as the Invesco QQQ Trust QQQ is down about 11% and the Technology Select Sector SPDR Fund XLK is down almost 15% YTD.
How Trump And China Are Affecting Big Tech
President Donald Trump's latest pivot on China is also turning heads. "The Trump administration’s softened stance on China and the temporary pause on sweeping tariffs have helped fuel a short-term rally in Big Tech stocks," Todorova told Benzinga.
With Trump calling the 145% tariff "too high" and likely to come down "substantially," hopes of a de-escalation are reviving bullish spirits. "A substantial easing on tariffs toward China could restore confidence in these companies’ growth trajectories."
Still, Todorova notes the picture isn't all rosy. "Despite temporary exemptions on electronics, the threat of broader tariffs, including those targeting semiconductors still looms." Nvidia, in particular, faces headwinds: "Export bans on Nvidia and AMD AMD chips have already triggered sharp declines."
The bottom line?
"Often some of the market's strongest rebounds occur after sharp declines," notes Todorova, and for investors with "a longer time horizon and a steady hand," these oversold names may be a rare tech clearance sale.
Read Next:
- US Tech In Tariff ‘Twilight Zone’ Says Dan Ives: Nvidia Chip Restrictions In China, Huawei Steps Into The Void
Photo: Shutterstock
