The recent sell-off across U.S. stocks has created fresh uncertainty for investors, with technology shares bearing the brunt of mounting concerns over AI valuations, persistent inflation and the prospect of higher interest rates.
The Nasdaq Composite fell 4.5% over the week ending October 16, while the S&P 500 dropped 1.9%, marking their worst weekly performances since June.
However, broad market weakness can also create opportunities to buy historically successful companies at more attractive valuations, particularly when their underlying businesses remain strong and technical indicators begin to signal a potential rebound.
In this line, two stocks now offer potential entry points as investors look for signs that the latest downturn may be creating buying opportunities.
Adobe (NASDAQ: ADBE)
Adobe (NASDAQ: ADBE) stock closed at $245.20 on October 16, down 2.57% for the day and 32.6% below its 52-week high of $363.70, despite strong growth in its AI-powered business.
In its fiscal third quarter of 2026, Adobe reported revenue of $6.76 billion, up 13% year over year, while non-GAAP earnings per share rose 15% to $6.13.
Annualized recurring revenue (ARR) increased 11.2% to $27.50 billion, while AI-first ARR surged more than 150% to over $650 million. The company also raised its full-year revenue and earnings forecasts.
Continued AI monetization could help reverse the stock’s decline. Notably, Adobe is expanding AI tools across its Creative Cloud and Experience Cloud platforms, while paid customers for its brand-visibility solutions doubled quarter over quarter.
Further adoption could drive subscription growth and ease concerns that generative AI will undermine demand for its established software products. However, competition and foreign-exchange pressures remain risks.
Technically, Adobe shares remain below their 50-day and 200-day moving averages of $254, The $239–$245 range is an important support zone, while a sustained move above $254–$257 on stronger trading volume could signal a recovery. A break below support, however, would weaken the bullish outlook.
Skyworks Solutions (NASDAQ: SWKS)
Skyworks Solutions (NASDAQ: SWKS) stock could benefit from a recovery in wireless chip demand and its planned combination with Qorvo. Shares closed at $79.70 on October 16, up 0.76% for the session but still 14.1% below their 52-week high of $92.80.
The semiconductor company reported fiscal third-quarter 2026 revenue of about $935 million, with GAAP earnings per share of $0.22 and adjusted earnings per share of $1.08. Management cited healthy mobile demand alongside growth opportunities in automotive electronics and data-center infrastructure.
These markets could reduce Skyworks’ reliance on smartphone-related revenue. Its expanding automotive design-win pipeline and opportunities in AI data centers, including precision timing and high-voltage isolation technologies, offer additional avenues for growth. However, translating these opportunities into meaningful earnings will take time.
Another potential catalyst is Skyworks’ planned combination with Qorvo, which could expand its product portfolio, broaden its customer base, and generate operating efficiencies. The combined company has also authorized a $2 billion share-repurchase program, although actual buybacks are not guaranteed. Skyworks has indicated that it will discontinue quarterly dividends under its new capital-allocation framework, redirecting capital toward other priorities.
Successful integration, debt reduction, and stronger demand for AI infrastructure could improve investor sentiment. However, acquisition financing, integration costs and weaker smartphone demand remain key risks.
Skyworks showed signs of recovery, moving above its 50-day moving average and gaining for three consecutive sessions through October 15. However, a bearish shooting-star pattern on October 16 suggested renewed near-term selling pressure.
The $78.50, $77.30 and $75.70 levels are potential support zones, while resistance near $81.30 and $82.90 could determine whether the rebound continues.
A sustained breakout above resistance on stronger trading volume would strengthen the bullish case, while a break below support could signal renewed weakness.
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