The stock market selloff has been hitting tech stocks the hardest. That’s turned some high-flying valuations into more reasonable ones. While maybe not an extreme value, companies that are able to report growing earnings in spite of the economic headwinds right now could be at a solid entry point.
That’s especially true for industry-leading tech companies that are also contending with the issues of larger companies, such as regulatory ones.
The perfect example of this is
Nvidia (NVDA). The graphics processing giant just beat on earnings and raised guidance, but booked a $1.3 billion loss on the failed attempt to acquire Arm and expand its offerings.
That, combined with the stock market’s weak performance in the past week, caused shares to slide further, and are now down one-third from their 52-week high.
Action to take: The company is one of the best ways to play a variety of long-term tech trends going on right now, which makes shares a good long-term buy right here. The stock does pay a dividend, but such a modest one that it’s still better seen as a growth play.
For traders, the May $280 calls, last going for about $10.40, offer a mid-to-high double-digit return in the coming weeks as cooler heads prevail and the market separates winning stocks from those that were too overvalued to begin with.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.
