Technology stocks are back. After a brutal selloff throughout 2022, shares of technology companies have skyrocketed year to date, with many doubling in price. The tech-laden Nasdaq index has gained 19% so far this year, outpacing both the S&P 500 index and Dow Jones Industrial Average. However, many leading technology stocks are only now beginning to recover from the downturn they experienced over the last 12 to 18 months. Some tech stocks are just coming off their bottom and trading only slightly above a 52-week low. This offers a huge opportunity for investors to buy great technology stocks on sale and ride them to riches over the long term.
Technology companies have led stock market gains over the past 20 years, and with new breakthroughs being made in artificial intelligence (AI), cloud computing, microchips, and self-driving vehicles, it can be expected that tech stocks will continue to lead for the foreseeable future. Here are three millionaire-maker tech stocks on sale now.
Electric vehicle maker Tesla’s (NASDAQ:TSLA) stock has dropped 8% in the last month, presenting a buy-the-dip opportunity for investors. While the shares have rallied off a bottom reached in January of this year, they’re currently trading 32% below where they were in May 2022 and are down 58% from an all-time high reached in November 2021. TSLA stock has been knocked lower since it delivered its latest earnings report at the end of April. However, there are several reasons for investors to be bullish on the company and its shares.
The big reason for optimism is that Tesla CEO Elon Musk has found someone new to lead the social media company Twitter, which he also owns, and has publicly said that he plans to devote more time to running the electric vehicle maker. Musk has also said that Tesla plans to begin advertising its vehicles, reversing a long-standing position against ad spending. Plus, Tesla’s long-awaited Cybertruck is expected to go on sale later this year, and the company continues its global expansion, with plans for a new manufacturing site in Mexico.
Alphabet (GOOG, GOOGL)
It’s not too late to buy shares of tech giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Due almost entirely to the hype surrounding artificial intelligence, GOOGL stock has rallied 34% so far this year. However, that rally has only begun to erase the steep losses the shares endured in 2022 during the so-called “tech wreck.” Currently, Alphabet’s share price is only 2% higher than where it was a year ago, and the stock remains 20% below the all-time high it reached in November 2021.
The future looks bright for Alphabet as the company continues to roll out a suite of generative AI tools and platforms. The stock rallied hard after executives held their annual Developer Conference and gave investors and analysts a glimpse of the company’s future offerings when it comes to AI Beyond chatbots and large language models, Alphabet also unveiled a new foldable smartphone that will sell for just under $1,800.00, as well as several new Pixel smartphones.
Taiwan Semiconductor Manufacturing Co. (TSM)
Microchips and semiconductors are only growing in importance. Almost all major technological advances, including those made in AI, rely on chips and semiconductors. And Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) remains the world leader in the highly specialized manufacturing of semiconductors and chips, many of which are microscopic. 60% of all the chips and semiconductors in the world are made by Taiwan Semiconductor, giving it a unique position and a wide moat around its business.
The good news for investors is that TSM stock is only starting to recover from a 52-week low in November of last year. Over the past 12 months, Taiwan Semiconductor’s stock has been down 4%. It’s currently trading 16% below its 52-week high. This presents a great opportunity for investors looking for a long-term growth stock to add to their portfolio. While there are some geopolitical concerns over the fact that the company is based in Taiwan, most analysts see the strategic importance of its work as shielding it from those risks.
On the date of publication, Joel Baglole held a long position in GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Artificial Intelligence, Consumer Discretionary, Automotive, Energy, Renewable Energy, Battery, Cloud, Electric Vehicles, Semiconductor, Software, Technology