Summary: Microsoft, Broadcom, and Oracle are beaten-down tech stocks offering dividends and growth potential.
From Nasdaq: 2025-04-06 07:00:00
Technology has taken over the U.S. stock market, with Microsoft, Apple, and Nvidia leading the pack. The sector has outperformed the S&P 500, now making up 29.6% of the index. However, big tech stocks have caused most of the S&P 500’s recent sell-off. Investors eyeing tech should consider Microsoft, Broadcom, and Oracle, all down from their highs and offering dividend potential.
Microsoft stands out in the tech sector with its diverse business, AI tools, and strong financial position. The stock’s recent decline has made it relatively cheap with a P/E ratio of 29, presenting a buying opportunity. With a solid balance sheet, steady revenue growth, and attractive margins, Microsoft is a compelling investment choice.
Broadcom, a foundational chip stock, offers a balanced mix of established business segments and growth potential in AI. Demand for Broadcom’s XPU accelerator chips is rising, driving its AI segment’s revenue. Despite potential AI spending fluctuations, Broadcom’s valuation is attractive at 22 times forward earnings, making it a strong buy with dividend yield.
Oracle is leveraging AI-driven data center demand and expanding its cloud services to compete with major providers. The company’s cloud infrastructure revenue is growing steadily, making up a significant portion of its total revenue. With multi-cloud partnerships and a relatively low forward P/E ratio of 21.4, Oracle presents an appealing investment opportunity for long-term growth.
For investors seeking stable tech stocks with growth potential and dividends, Microsoft, Broadcom, and Oracle offer a compelling combination. These companies have solid fundamentals, reasonable valuations, and promising growth prospects, making them attractive amid the current market environment. Consider these rock-solid tech stocks for long-term investment success.
Read more at Nasdaq: 3 Beaten-Down Tech Stocks to Buy That Have Raised Their Dividends for 15 Years in a Row