From Nasdaq:

The year 2023 saw the Nasdaq Composite rise more than 40% after the previous year’s economic downturn. This led to immense growth in tech stocks, particularly in areas like artificial intelligence and cloud computing. Investing in tech stocks after a market downturn could yield great returns in the long term.

Three stocks to consider after a market downturn are Nvidia, Amazon, and Microsoft. Nvidia’s stock plummeted in 2022 but soared over 240% in 2023. Its strong presence in AI makes it a promising long-term investment, with projected earnings to rise by 95%. Amazon and Microsoft also proved their reliability after the market downturn, with strategic moves and investments in AI and cloud computing.

Amazon’s e-commerce business suffered in 2022 but has made a strong comeback in 2023, with a 427% increase in free cash flow. At a price-to-sales ratio of 2.8, its stock is a great value investment. Microsoft’s focus on commercial and digital markets made it less vulnerable to economic declines, and its stock rose 57% in 2023 as it emerged as a leading name in AI.

Investors looking for a consistent long-term investment should consider Microsoft. It currently trades at a premium with a price-to-earnings ratio of 36, but its proven reliability and significant free cash flow make it a solid choice for investors. Choosing the right stocks after a market downturn could lead to significant long-term gains.



Read more: 3 Stocks You Can Confidently Buy After a Market Downturn