3 Top Bargain Tech Stocks Ready for the Next Bull Run

Geoffrey Seiler, The Motley Fool

Sun, Apr 6, 2025, 7:15 AM 5 min read

Following President Donald Trump's "Liberation Day" tariff announcement, stocks plummeted as fears escalated regarding a potential global trade war and how it could impact the global economy. While there certainly could be more pressure on stocks in the coming weeks depending on how this all plays out, it also has created some solid entry points for several top tech stocks where investors can start to at least dip their toes into the stocks.

Let's look at three bargain tech stocks investors can consider buying now.

Being one of the top growth stocks in the past few years has not stopped Nvidia (NASDAQ: NVDA) from getting thrown into the bargain bin with a lot of other stocks. The stock now trades at a forward price-to-earnings ratio (P/E) of only 23 times based on this year's analyst estimates and a price/earnings-to-growth (PEG) ratio near 0.4. Stocks with PEGs below 1 are considered undervalued, so Nvidia stock is clearly on the clearance rack.

However, the company still has a lot of potential growth in front of it. Its graphic processing units (GPUs) are helping drive the artificial intelligence (AI) revolution and there are no signs a trade war will stop that. Meanwhile, semiconductors are reportedly exempt from the tariffs that have been placed on Taiwan, which is where most are manufactured.

As such, this should not slow down the current pace of the AI infrastructure buildout. Nvidia has predicted that data center capital expenditures (capex) will reach $1 trillion by 2028. This is being led by the three big cloud computing companies, which are rich in cash. Combined, they plan to spend $250 billion in AI infrastructure-related capex this year. At the same time, other tech companies are rushing to build better AI models, while large enterprises are looking toward a hybrid cloud approach to AI.

Given its valuation and the opportunities still in front of it, Nvidia looks like a solid stock to buy on the dip.

Perhaps not surprisingly, as the world's largest e-commerce retailer, Amazon's (NASDAQ: AMZN) shares were punished by the new tariffs announced. It sells a lot of goods from third parties that are made in countries like China, and these goods are likely to suddenly get more expensive. This could lead to a slowdown in sales, especially if a global recession hits.

That said, most goods are made in foreign countries like China, so the playing field versus competitors has not changed. Long-term, the tailwinds in e-commerce remain, while Amazon has been doing a great job driving earnings growth through its higher-margin sponsored ad business and driving logistic and warehouse efficiencies through AI.