Tech stocks like Nvidia and Amazon are attractive long-term investments despite recent market sell-off.

From NASDAQ.: 2024-08-09 09:00:00

In the last month, the stock market experienced a significant sell-off, causing the Nasdaq Composite to drop almost 10%. Concerns over a recession were fueled by the U.S. adding only 114,000 jobs in July, below the expected 175,000.

Despite recent declines, investing in tech remains attractive due to its long history of providing consistent and substantial gains. The tech-driven Nasdaq Composite has surged by 280% since 2014, offering an exciting opportunity to acquire stocks at a better value.

One tech stock worth considering is Nvidia (NASDAQ: NVDA), which has seen a 16% drop in share price recently. Despite this, Nvidia’s market dominance in AI and chip markets positions it well for long-term success.

With Nvidia leading in key markets like AI chips and data center GPUs, its quarterly revenue and operating income have risen significantly. This growth, combined with a lower price-to-earnings ratio compared to its historical average, makes Nvidia a compelling investment option.

Amazon (NASDAQ: AMZN) has seen a 17% dip in its stock since July but is bolstered by the growth of its cloud computing and advertising segments. While retail remains volatile, the company’s stability in areas like AWS and ad revenue bodes well for its future.

Investing in Amazon also presents an attractive option, with its quarterly operating income and free cash flow on the rise. With lower price-to-earnings and price-to-sales ratios compared to its historical averages, Amazon is a strong investment choice.

Considering the potential for growth, investing in tech stocks like Nvidia could lead to significant returns. The Motley Fool Stock Advisor has identified 10 top stocks to invest in currently, offering insights and recommendations for building a successful portfolio.



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