Recent weakness in the stock market has opened buying opportunities in key areas of technology. Some stocks have reached the lowest levels seen in years, creating rare chances to acquire shares at compressed valuations. The market could reassess these stocks on any day, meaning investors shouldn’t wait for better prices—now is the time to act.
Three technology stocks stand out as bargains after recent selloffs erased premium valuations that had persisted for years. Microsoft, The Trade Desk, and Nvidia are all trading at valuations that don’t reflect their growth prospects or competitive positions. By investing now, these stocks could deliver market-beating returns as valuations normalize and growth trajectories reassert themselves.
Microsoft Corporation (MSFT) has had a premium valuation in the tech space since about 2020, currently trading around $401 with a $4.4 trillion market cap. However, that premium has been erased over the past few months with general weakness in the tech sector and a poorly received earnings report.
The stock is best valued using operating profits rather than net income, as net income includes the effects of Microsoft’s investment in OpenAI, which has caused reported earnings to soar over the past few quarters. From an operating profit perspective, Microsoft is nearly at the cheapest level it has reached outside of the 2023 selloff.
What has changed over the past few months? Nothing. Microsoft is still in a dominant position in its industry and just delivered one of its better quarters in terms of growth over that timeframe. The recent quarterly revenue growth was among the strongest the company has posted, yet the stock traded down sharply following the report.
It’s rare to get an opportunity like this to buy Microsoft stock at these valuations. The company maintains dominant market share in enterprise software through Office 365, Azure cloud services, and Windows operating systems. The OpenAI partnership positions Microsoft at the forefront of AI integration across its product suite, creating new revenue opportunities in Copilot AI assistants and Azure AI services.
The selloff appears driven by sentiment rather than fundamentals. Microsoft continues executing on its growth strategy, expanding Azure’s market share in cloud infrastructure and embedding AI capabilities across its product portfolio. The valuation compression creates an entry point that may not last long once the market reassesses Microsoft’s positioning and growth trajectory.
The Trade Desk Inc. (TTD) isn’t all green flags like Microsoft, currently trading around $26. The company has some challenges it’s facing with its ad platform, although it’s still producing strong results. In Q3, The Trade Desk reported 18% year-over-year growth. While this is slower than in previous quarters, it’s still an impressive growth rate.
The prior year was boosted by Q3 political ad spending, so The Trade Desk had headwinds it was dealing with in the comparison. Political advertising cycles create lumpiness in year-over-year comparisons that can mask underlying business health. Stripping out these cyclical factors reveals continued strength in The Trade Desk’s core programmatic advertising platform.
For 2026, Wall Street expects 17% revenue growth, so it’s not like The Trade Desk’s entire growth thesis is in the trash. The company continues gaining share in programmatic advertising as brands shift budgets from traditional ad buying to automated platforms that offer better targeting and measurement.
Despite this, The Trade Desk stock is valued at an unbelievably low level. For a mere 13 times forward earnings, investors can own a stock growing in the high teens. That’s an absolute bargain when compared to other software companies growing at similar rates but trading at 25-30 times forward earnings.
The valuation compression reflects concerns about slowing growth and competitive pressures in digital advertising. But The Trade Desk’s platform continues demonstrating value to advertisers through superior data capabilities and campaign optimization. The company’s focus on connected TV advertising positions it well as streaming continues taking share from linear television.
Investors can confidently take a position in the stock at this price. The 13 times forward earnings multiple represents a rare opportunity to acquire a high-quality software business with double-digit growth at a valuation typically reserved for mature, slow-growth companies.
Nvidia Corporation (NVDA) is not usually associated with the word “bargain,” currently trading around $183 with a $4.4 trillion market cap. However, that’s exactly what Nvidia is right now, and investors should take advantage of this opportunity.
Despite many of Nvidia’s largest clients announcing jaw-dropping capital expenditure figures for AI infrastructure, Nvidia’s stock has barely budged. The company now trades for a mere 24 times forward earnings, despite being projected to grow at a 64% pace in FY 2027 (ending January 2027).
That’s not much of a premium over the broader market, as measured by the S&P 500. With the S&P 500 trading for 21.8 times forward earnings, Nvidia’s stock is almost too cheap to ignore at this point. A company growing earnings at 64% annually should command a significant premium to the market multiple, yet Nvidia trades at just 24 times forward earnings.
Additionally, 2026 won’t be the end of elevated generative AI spending. Nvidia believes that global data center capital expenditures could reach $3 trillion to $4 trillion by 2030, which would result in massive gains for Nvidia and its peers in AI infrastructure.
Whether the market reaches those exact levels remains uncertain, but AI spending is clearly set to increase over the next few years. Major technology companies including Microsoft, Meta, Amazon, and Google have all announced record capital expenditure plans focused on AI data center buildout. These investments create direct demand for Nvidia’s GPUs and networking equipment.
Nvidia’s competitive moat in AI acceleration hardware remains intact. The company’s CUDA software ecosystem creates switching costs that make it difficult for customers to migrate to alternative chip architectures. While competitors are developing AI accelerators, Nvidia’s head start and ecosystem advantages provide durable competitive positioning.
The recent stock weakness appears disconnected from business fundamentals. Nvidia continues posting strong revenue growth, expanding gross margins, and guiding for continued strength in AI demand. The valuation compression creates an opportunity to acquire shares in the dominant AI infrastructure provider at a reasonable multiple.
These three stocks represent rare buying opportunities created by recent market weakness. Microsoft trades at its cheapest valuation in years despite maintaining dominant market positions and executing on AI integration. The Trade Desk offers high-teens revenue growth at just 13 times forward earnings—a valuation that doesn’t reflect the quality of its programmatic advertising platform. Nvidia provides 64% projected earnings growth at 24 times forward earnings, barely above the S&P 500 multiple despite leading AI infrastructure.
The market could reassess these valuations at any time as investors recognize the disconnect between current prices and business fundamentals. Savvy investors shouldn’t wait for lower entry points—these valuations may not persist long once sentiment shifts and the market refocuses on growth trajectories and competitive positioning rather than short-term concerns.
