Nvidia shares pop as analysts dismiss AI bubble concerns
- Nvidia’s results beat expectations and could boost techs’ rise.
- Are the biggest tech companies always the best picks?
- Discover nine US tech stocks that could soar in the coming weeks.
- For a limited time, get an InvestingPro subscription at the lowest price of the year with our Early Bird Black Friday discount.
Technology stocks may be ready for a rebound after several weeks of decline. Nvidia’s (NASDAQ:NVDA) long-awaited quarterly results finally met the high expectations that had built up.
Earnings per share came in at $1.30 against the forecast of $1.25. Revenue reached $57 billion, ahead of the $54.89 billion expected by the Street. The outlook also came in stronger than most forecasts.
Nvidia shares rose more than 5% in after-hours trading. The move lifted other major technology names and set the stage for a wider recovery on Thursday.
Nvidia stands as the largest company in the world and the main engine of the AI-driven bull market of recent years. Its latest results offered a major sense of relief to investors who had grown uneasy about whether technology valuations made sense.
The spotlight remains on the biggest names in AI and the wider tech sector. Still, experienced investors understand that the strongest openings rarely appear in these heavily followed stocks.
Nvidia’s numbers confirm that the AI rally still has real strength behind it. Even so, valuations across large tech names sit far above their fundamentals. Almost every company in the Magnificent 7 group trades beyond its InvestingPro Fair Value, which blends several established valuation models.
Today’s surge will only push these stretched valuations even higher.
This is why investors who seek stronger rebound potential may want to look beyond the familiar giants. The more attractive openings sit in lesser-known technology names, especially those that trade at far lower prices than Nvidia and its peers..
9 Battered Tech Stocks Poised for an Explosive Rebound
To track down these opportunities, we used Investing.com’s screener and filtered for US stocks that fit the following criteria:
- Technology sector
- Market capitalization in excess of $1 billion
- Decline of more than 10% over one month
- Shares undervalued by at least 40% according to InvestingPro Fair Value
- Bullish potential of at least +40% according to analysts’ average target.
This research identified 9 stocks:
ATTENTION: Although the basic functions of the Investing.com screener are available free of charge, in this search we used metrics reserved for InvestingPro, Pro+ plan subscribers.
- If you are an InvestingPro (Pro+) subscriber, click here to access this screener search.
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These stocks, which dropped from eleven percent to twenty-three and a half percent over the past month, now trade at discounts of forty-one point four percent to sixty-five point eight percent based on InvestingPro Fair Value. Analysts also assign strong upside potential ranging from forty-five point five percent to one hundred ninety-eight point five percent.
These examples come from a defined set of filters and represent only part of the landscape. Many other names in technology and beyond could emerge as compelling opportunities in the months ahead.
For investors who want to run their own search, the Investing.com screener offers a ready tool with pre-built thematic filters. The options under the Growth category are especially useful now that Nvidia’s latest results have revived interest in high-potential tech stocks.
Please keep in mind that some of these pre-configured searches are available only to InvestingPro and Pro+ subscribers.
If you’re not yet an InvestingPro subscriber and want to explore the opportunities mentioned in this article along with access to InvestingPro tools, you can now take advantage of an exclusive 55% early bird Black Friday discount by clicking the button below.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.