Tech stocks have hit a rough patch, dragging the broader market lower after leading the rally in 2023 and 2024.
While a brief rebound on March 12 offered some relief after U.S. inflation figures for February came in below forecasts, markets remain volatile, with the S&P 500 and Nasdaq bouncing off six-month lows in hopes of regaining stability.
Yet, even in the midst of a downturn, market pullbacks often present an opportunity for investors looking to capitalize on long-term growth potential. In that light, Finbold has identified two stocks that seem attractive at current levels.
Picks for you
Advanced Micro Devices (NASDAQ: AMD)
Despite a rough start to the year that has seen Advanced Micro Devices (NASDAQ: AMD) decline over 17% year-to-date, the stock seems attractive at current levels.
While often overshadowed by Nvidia (NASDAQ: NVDA) in the AI race, AMD could see a potential rebound, thanks to its growing data center business, an impending PC refresh cycle, and an attractive valuation relative to its peers.
AMD’s client segment, which includes its Ryzen processors for desktops and laptops, has been steadily gaining ground. In 2024, AMD grew its desktop CPU market share by 27% and expanded its laptop share to 24%, driven by superior product performance.
A key catalyst ahead is Microsoft’s (NASDAQ: MSFT) planned phase-out of Windows 10 in October 2025, which is expected to drive a major PC upgrade cycle.
Beyond the client segment, AMD’s real growth engine is its data center business, which saw a 94% revenue increase in 2024 to a record $12.6 billion.
While Nvidia remains dominant, AMD’s MI300X GPUs have attracted major players like Meta (NASDAQ: META) and Microsoft. Looking ahead, AMD is preparing to sample its next-generation MI350 GPUs with key customers this quarter, with production ramping up by mid-year.
Taiwan Semiconductor Manufacturing (NYSE: TSM)
As the world’s largest semiconductor foundry, TSMC (NYSE: TSM) commands 64% of the global market share, serving as a key supplier of chips for industry leaders such as Nvidia, Apple (NASDAQ: AAPL), AMD and Broadcom (NASDAQ: AVGO).
This dominance positions it as a critical player in the AI revolution, as tech giants invest billions into AI infrastructure, indirectly benefiting TSM. Despite its market leadership, TSMC stock has faced headwinds, currently trading at $173.42 with a 12% decline year-to-date.
The company’s advanced process nodes, 3nm and 5nm, are reportedly running at full capacity, and it is already preparing for the next-generation 2nm chips, set to enter volume production later this year, according to Techovedas.
Analysts expect revenue from this segment to grow fourfold between 2025 and 2026, further strengthening TSMC’s leadership in the semiconductor industry.
This optimism is reflected in recent projections from Bernstein and Bank of America setting price targets of $251 and $265, respectively, indicating an upside of over 50% from current levels.
Featured image via Shutterstock
