The Nasdaq Composite recently fell into a correction, dropping over 10% from its recent highs, creating investment opportunities for long-term investors. Notably, Advanced Micro Devices (AMD) and Alphabet (GOOGL) have seen significant declines, making them attractive options. AMD shares are down nearly 20% since early 2025 but have growth prospects in data centers and AI-focused chips. Meanwhile, Alphabet’s stock has fallen about 18%, trading at 19 times forward earnings, with strong growth in its Google Cloud business. Both companies offer potential for long-term gains despite current market uncertainty and volatility.
A correction in the stock market is typically identified as a decline of 10% from recent peaks, and the Nasdaq Composite has just experienced this. For the past two years, the Nasdaq has been the top performer among major market indices, but its start to 2025 has not been particularly strong.
This situation, however, presents intriguing opportunities for long-term investors to deploy capital. The tech sector is expected to be one of the least impacted by tariffs, and while many high-flying stocks remain highly valued post-correction, some currently appear quite appealing.
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With this in mind, here are two specific Nasdaq stocks, both of which have declined by more than 10%, that could warrant further investigation while the index is correcting.
Don’t overlook this chipmaker
Advanced Micro Devices (NASDAQ: AMD), commonly referred to by its initials, AMD, has been one of the poorest performing large-cap tech stocks recently. The shares have dropped nearly 20% since the beginning of 2025 and have fallen over 55% from their 52-week peak.
Nonetheless, there are ample reasons to consider AMD. While it ranks as a distant second in the graphics processing unit (GPU) arena compared to Nvidia (NASDAQ: NVDA), it remains a major manufacturer and offers several other chip types in its portfolio. The company operates across four segments, all presenting substantial growth potential.
The data center division accounts for half of AMD’s revenue and saw its revenue nearly double in 2024. With the data center market anticipated to expand by 140% by 2030, significant growth may be on the horizon. AMD’s personal computer segment has shown impressive growth, gaining market share from key rival Intel (NASDAQ: INTC) and introducing advanced AI-centric chips. While the gaming and embedded segments have faced challenges recently, the latter includes AMD’s automotive chip business, poised for growth as autonomous vehicle technology advances.
At its currently depressed price, AMD is trading at just 22 times anticipated earnings, despite reporting 24% revenue growth in the fourth quarter and significant long-term opportunities across its segments.
My favorite Magnificent 7 stock to consider now
Though some stocks within the “Magnificent Seven” appear quite expensive even after the Nasdaq correction, there’s a strong argument that Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) is currently undervalued.
Having dropped about 18% from its 52-week high, Alphabet is trading at roughly 19 times forward earnings despite robust business momentum. In the last quarter, revenue rose by 12%, and earnings per share increased at an impressive year-over-year rate of 31%.
Google Cloud, in particular, appears very promising at this moment, as the company is significantly benefiting from the current AI investment surge. Google Cloud’s revenue jumped 30% year-over-year in the fourth quarter, yet it still comprises just about 12% of overall revenue. With the cloud computing sector projected to nearly quadruple by 2032, this high-margin revenue stream has the potential for years of rapid growth ahead.
Invest for the long haul
To be clear, I believe both AMD and Alphabet are appealing from a long-term investment standpoint. I cannot predict how these stocks will perform in the upcoming weeks or months, nor can I ascertain the duration of the ongoing market volatility. However, these are two solid companies with strong leadership and vast potential opportunities, and investors who buy in now may be pleased with their decision in the coming years.
Don’t miss this second chance at a potentially lucrative opportunity
Have you ever felt like you missed your opportunity to invest in the most successful stocks? If so, you’ll want to pay attention here.
Occasionally, our expert analyst team issues a “Double Down” stock recommendation for companies they believe are on the verge of significant growth. If you’re concerned you’ve missed your chance to invest in these stocks, now is the ideal time to act before it’s too late. The results speak for themselves:
- Nvidia: if you had invested $1,000 when we doubled down in 2009, you’d have $295,759!*
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- Netflix: if you had invested $1,000 when we doubled down in 2004, you’d have $525,108!*
Currently, we’re issuing “Double Down” alerts for three remarkable companies, and another opportunity like this may not come up soon.
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*Stock Advisor returns as of March 3, 2025
Suzanne Frey, an executive at Alphabet, serves on The Motley Fool’s board of directors. Matt Frankel holds no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Intel, and Nvidia. The Motley Fool recommends the following options: short May 2025 $30 calls on Intel. The Motley Fool follows a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.