Big Tech Selloff: 2 ‘Strong Buy' Stocks Down 19% and 21% to Buy on the Dip Now

Globe and Mail

17-03-2025

The recent selloff in big tech stocks has erased billions from their market valuations, rattling investor confidence. Economic concerns tied to President Donald Trump's policies — from tariffs and immigration to federal spending cuts — have added to the unease, pulling the broader market lower. Even the most dominant players in the sector, often referred to as the ' Magnificent Seven,' have seen double-digit declines from their peaks.
Despite this pullback, these tech giants remain at the forefront of innovation. They will benefit from significant tailwinds such as the adoption of artificial intelligence (AI) and the ongoing digital shift. Thus, this pullback presents an opportunity to buy quality stocks at a discounted price.
With that in mind, let's take a closer look at two big tech stocks rated as 'Strong Buys' by analysts — both of which have retreated from their highs but are well-positioned for strong future growth.
Big Tech Stock #1: Nvidia
Nvidia (NVDA) stock has taken a hit, sliding over 20.5% from its recent peak. Investors are growing uneasy over the potential slowdown in AI infrastructure spending and broader macroeconomic uncertainty. While these concerns are valid, Nvidia's core business — its AI-focused GPUs — remains in high demand, with no signs of cooling off. In fact, demand continues to outstrip supply, suggesting that the company could continue to deliver solid financials.
Notably, Nvidia has been delivering impressive growth quarter after quarter. Further, its management remains optimistic about the future, which indicates that demand for its AI chips isn't going anywhere. The company's data center segment, a key driver of its growth, has been surging thanks to its Hopper platform and now the latest Blackwell chips.
In fiscal 2025, Nvidia's data center revenue more than doubled, hitting an impressive $115.2 billion. This momentum will sustain, with the adoption of Blackwell accelerating and Hopper 200 maintaining its strength. These strong numbers show that Nvidia's AI chips are more in demand than ever.
Nvidia's latest earnings report reflects its dominance in the AI space. Nvidia generated $11 billion in revenue from Blackwell in Q4 alone, marking the fastest product ramp in its history. Production is in full swing, with supply increasing to meet the overwhelming demand. Looking ahead, Nvidia expects another strong quarter, with Blackwell seeing a significant ramp-up in Q1 of FY26. Growth in both the data center and gaming divisions is anticipated. Within the data center segment, strength in computing and networking will support its growth.
These factors suggest that Nvidia is well-positioned for sustained growth, which could support a solid rebound in its share price. The dip has made its valuation more attractive, and Wall Street analysts remain bullish.
The stock currently holds a 'Strong Buy' consensus rating and an average price target of $176.56, suggesting nearly 50% potential upside from current levels.
Big Tech Stock #2: Amazon
Amazon (AMZN) stock has dropped about 19.4% from its recent high, despite the company firing on all cylinders. This pullback could be a chance for long-term investors to buy into one of the most dominant players in high-growth industries like cloud computing, e-commerce, digital advertising, and AI.
The tech giant is gearing up for another strong year, with multiple business segments driving its momentum. One of its biggest strengths is Amazon Web Services (AWS) — the company's cloud computing division. AWS is booming, with an annualized revenue run rate of $115 billion. With businesses increasingly migrating to the cloud and embracing AI-driven solutions, AWS is perfectly positioned to ride this wave.
Beyond the cloud, Amazon's digital advertising business is another powerhouse. The company pulled in $17.3 billion in ad revenue in Q4 alone, marking an 18% year-over-year increase. To put that into perspective, Amazon's annual advertising revenue run rate now stands at $69 billion — more than double what it was just four years ago.
On the operational front, Amazon is making moves to improve efficiency and cut costs. The company's shift toward a regional fulfillment network is optimizing its delivery operations, supporting its margins, driving its e-commerce growth, and making Amazon even more competitive in retail.
Wall Street remains bullish on Amazon stock, with analysts overwhelmingly giving it a 'Strong Buy' rating. The stock's average price target of $268.66 suggests potential upside of roughly 37.5% from current levels.