7 Tech Stocks to Buy Now for Extraordinary Gains

It’s hard to find the best tech stocks to buy because technology stocks have been crushed like tin cans in this year’s market selloff.

Ever since the 2008-09 financial crisis, technology stocks have posted outsized gains compared to just about any other category of securities. Between 2011 and 2021, the technology-laden Nasdaq index gained 440%, dwarfing the performance of the S&P 500 index (up 190%) and Dow Jones Industrial Average (up 160%) over the same time period.

But while this year’s reversal of fortune has been painful, the current downturn presents an opportunity. Investors can get their hands on many of the best tech stocks to buy on the cheap, reaping extraordinary gains when they inevitably rebound from their current lows.

To avoid missing out and ensure that your portfolio is well-positioned for the future, consider buying these seven tech stocks for big future gains.

Nvidia (NVDA)

Once among the best tech stocks to buy, Nvidia (NASDAQ:NVDA) has been particularly beaten up, down 55% on the year and only a shade above the its 52-week low.

In addition to investors fleeing to the safety of blue-chip consumer staples amid the current inflationary environment, NVDA stock has been hurt by poor earnings results and ongoing struggles with its global supply chains.

At the end of August, Nvidia reported second-quarter earnings that missed Wall Street expectations by a country mile. The company announced earnings per share of $0.51, which was 60% lower than the $1.26 expected by analysts.

Revenue for Q2 came in at $6.70 billion, which was 17% below the $8.10 billion that analysts had penciled in. The actual results came two weeks after Nvidia was forced to pre-announce that it would miss Wall Street estimates and that growth had slowed, particularly with its gaming division.

Still, despite the current hardship, many analysts and investors continue to stand by NVDA stock, claiming it remains the top semiconductor and microchip company in the world. The median price target on the stock is currently $205, implying 54% upside from here.

Palo Alto Networks (PANW)

Many analysts are pounding the table on Palo Alto Networks (NASDAQ:PANW) as the war in Europe and a growing number of online hacks throw a brighter light on cybersecurity firms.

Palo Alto Networks develops advanced firewalls that protect corporations and governments from online intruders, particularly cloud-based systems. While the company’s stock has fared better than many tech plays, its share price is down 10% over the last six months, making this one of the best tech stocks to buy on the dip

In addition to the price decline, now is a great time to buy PANW stock after it split on a three-for-one basis Sept. 14. Before the split, Palo Alto shares traded above $500. Now, more retail investors get to own a piece of the leading cloud-based cybersecurity company in the world.

In its most recent quarter, Palo Alto Networks generated $1.55 billion in revenue, its operating income grew 57% year-over-year to $323 million, and its earnings per share was $2.52, ahead of Wall Street forecasts.

The median price target on PANW stock is $217 a share, implying 25% growth over the coming 12 months.

Amazon (AMZN)

Speaking of stock splits, investors should get in on Amazon (NASDAQ:AMZN). A perennial on any best tech stocks to buy list, the company looks even better following the 20-for-1 share executed on June 6 of this year.

The split, coupled with a 28% year-to-date decline, has AMZN stock trading near its most affordable level since before the pandemic hit in spring 2020.

To be sure, some internal struggles have led to the drop in Amazon’s share price. But the company is working overtime to course correct, and long-term the stock should continue its upward trajectory.

The online retailer has closed 44 warehouse facilities around the world and delayed the opening of 25 other sites as it tries to right size its operations to meet waning demand coming out of the pandemic.

Amazon has also laid off 100,000 workers and is taking steps to get its inventory down to more manageable levels. This shift coming out of the pandemic has dinged Amazon’s stock and hurt its earnings earlier this year.

More recently, the company reported positive results, beating on both the top and bottom lines for the second quarter and issuing better-than-expected guidance for the current third quarter.

The median price target on AMZN stock is $172, which would be nearly 40% higher than where the shares currently trade.

Microsoft (MSFT)

Another mega-cap technology stock that is available to buy on the cheap right now is Microsoft (NASDAQ:MSFT).

Down 28% on the year, this is one of the best tech stocks to buy on the cheap.

Microsoft’s price-to-earnings ratio is the lowest it has been in more than five years, and it is one of the few established technology firms to pay a dividend (currently yielding 1.02% for a quarterly payout of $0.62 a share).

Plus, the company’s stock has been pulled lower this year by the broader market. Microsoft’s earnings have held up remarkably well despite global supply chain problems, inflation, and rising interest rates.

Microsoft is also an increasingly diversified technology firm. In addition to its legacy software products such as Windows, the company has introduced new applications such as the video conference platform MS Teams which became a hit during the pandemic.

Microsoft is also gaining market share in other important tech realms, ranging from cloud computing to video games. The company’s $68.7 billion takeover of Activision Blizzard (NASDAQ:ATVI) is expected to be approved by regulators around the world and finalized next year. The median price target on MSFT stock is $327.50 a share, implying a 35% gain from current levels.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is one of the best tech stocks to buy now in the semiconductor space.

Since the start of the year, AMD stock has tumbled 49%. Last November, the company’s shares were trading right around $165 apiece.

As with Microsoft, much of the pullback in AMD stock is due to the market downturn. The company has managed to weather the current storm extremely well, posting strong earnings and continuing to issue bullish forward guidance. The company also continues to take market share from key competitors such as Intel (NASDAQ:INTC).

Analysts continue to highlight the strong product pipeline of semiconductor and microchip products at AMD, notably in the cloud computing, server, and client computing segments.

Ruben Roy, a five-star tech analyst at Stifel Financial (NYSE:SF), recently issued a bullish note on AMD stock, placing a “buy” rating on the shares and $122 price target, which would be around 60% higher than where the shares currently trade.

The median price target on AMD stock among 35 professional analysts is $120 a share, which would be 57% higher. The low price target on the shares is $80, which is 5% higher than where the stock currently sits.

Meta Platforms (META)

For seriously undervalued tech stocks to buy, look no further than Meta Platforms (NASDAQ:META). The parent company of Facebook has seen its share price plummet this year.

The stock tanked amid a slowdown in online ad spending and as the company’s pivot to focus on the metaverse is met with trepidation by both professional and amateur investors.

The company’s price-to-earnings ratio is currently 12, the lowest among all the major mega-cap tech stocks (Amazon’s P/E ratio is currently 111). Right now, META stock is cheaper than Walmart (NYSE:WMT).

As for the creation of the metaverse, Mark Zuckerberg and company remain undeterred by the skeptics and continue to bet heavily on the virtual reality world that is largely theoretical right now.

The company continues to endure heavy losses at both its Reality Labs division which is home to its virtual reality headsets and its Horizon Worlds metaverse platform.

Reality Labs alone has lost more than $25 billion since 2019. Fortunately, the company is still able to lean heavily on its Facebook and Instagram social media platforms to keep revenue coming in despite the current downturn. An expected rebound in online advertising next year should help improve things at Meta Platforms.

The median price target on META stock is $215, which would be 46% higher than where the shares are trading today.

Apple (AAPL)

If the global economy is sliding into a recession, somebody forgot to tell Apple (NASDAQ:AAPL). The consumer electronics giant continues to fire on all cylinders despite the many economic headwinds blowing against it and all tech companies.

Case in point, the company just unveiled its latest product line-up for the year ahead. It includes new iPhones, Apple Watches, and AirPods. Apple has also just launched a new operating system, iOS 16, and announced a partnership with Globalstar (NYSE:GSAT) that will enable the latest iPhone 14 to connect to satellites for emergency services in remote areas that are off-grid.

Yet despite its continued dominance in the consumer space, AAPL stock has also been brought lower this year amid the market carnage. Since January, AAPL stock has fallen 16% to trade at $153 a share.

Analysts seem to agree that this represents a great entry point to the stock, especially for investors who plan to hold shares for the long term.

With a P/E ratio of 25 and a dividend yield of 0.60%, there are a lot of reasons to buy Apple stock as the price slumps, and the stock shouldn’t be down for long. The median price target on the shares is $185, implying 21% upside.

On the date of publication, Joel Baglole held long positions in AAPL, MSFT and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.