Tech Stocks: Buying Opportunity Amid Market Fear

Speak with someone who is very involved in the market. A stockbroker, an investor, an analyst, or even a column writer. When asking what drives their choices in the market, they may tell you its based on charts or data. They may talk about company fundamentals or economics. But history shows us that many of the strongest rises and falls stem from something else, emotion. Fear and greed push investors faster and harder than any other metric.

Monday January 27th 2025, we saw a large dip in the tech market. Semi conductor stocks like NVDA and AMD dropped sharply. Why? Chinese AI service DeepSeek, was announced to be a strong rival to US owned AI. News on AI development has been one of the hottest topics this past year. Fear gripped US investors yesterday as investors began to question US dominance in the AI sector. This led to a sharp sell off of chip stocks like NVDA and AMD.

This is a clear opportunity for investors to buy the dip and load up on these stocks. For starters, the forecast for these stocks both remain buy recommendations with higher price targets from where they currently sit. This means that you are getting valuable assets at a cheaper price, which already creates value. However, let’s look at another aspect of value creation. Competition has historically brought out the best in U.S. innovation. With Silicon Valley seeing competition from outside the U.S., this will apply pressure for them to continue to innovate. This is a boon for both investors and consumers.

NVDA has been a shooting star in the stock world. Many investors have questioned how much higher the company can truly climb. Healthy competition is the perfect catalyst for the company to push to new highs. AMD though struggling to gain market share from the AI titan NVDA, is also a very valuable buy. AMD is still a heavy buy recommendation with a target price of $175. Looking at the tech stocks related to NVDA, AMD has great potential. AMD has a smaller market cap meaning that they have a much easier chance of doubling in a year than NVDA. AMD has very promising contracts with major tech companies like Google. AMD is still developing chips that can potentially rival NVDA.

While yesterdays sell off may seem daunting to investors, remember that fear often overwhelms logic. Look at the value, the strengths, and the growth potential. For the brave, the savvy, the clear headed. Let this sell off and news spell one word in your mind. Opportunity.