Bull Market Alert: Top Tech Stocks Slashed by 44% and 65% – Must-Buy Picks Today

Bull Market Alert: Top Tech Stocks Slashed by 44% and 65% – Must-Buy Picks Today

Markets have shown no signs of slowing down in 2024. Definitive confirmation that a new bull market is underway came in January as the S&P500 set a new record. Since then, it has continued to climb, on track to gain 10% in the first quarter of the year.

While the market as a whole regularly sets new records, several individual stocks still trade at a discount, particularly in the technology sector. Two Motley Fool contributors were asked to take a closer look at two of these discounted tech stocks. They offer their ideas and suggestions on whether these two stocks are worth including in your investment portfolio.

Bull Market Alert: Top Tech Stocks Slashed by 44% and 65% – Must-Buy Picks Today

Image source: Getty Images.

Intel is on the verge of an incredible transformation

Keith Noonan: It’s no secret Intel (NASDAQ:INTC) is losing ground to some key competitors in chip design. The company ceded market share to Advanced microsystems in the central processing unit (CPU) markets for PCs and servers. The company also faces a threat of Arm holds in the laptop market.

Even after rising about 43% over the last year, Intel stock is still down 35% from its peak in early 2020. As Intel struggles to catch up with its major competitors on processor market and expand into new categories that will help it capitalize on demand for artificial intelligence (AI) and other opportunities, the company will continue to face a challenging competitive landscape in this area. design space.

On the other hand, one of Intel’s strategic advantages is poised to become much more pronounced. Intel already ranks third in the world among semiconductor manufacturers, behind only Semiconductor manufacturing in Taiwan and Samsung.

This is largely because the company makes most of its own chips. But Intel appears poised to make huge strides in producing chips for other companies β€” and it will get a lot of help from the public sector. What’s behind this potentially massive transformation?

Many analysts and geopolitical experts predict that China will take steps to gain greater control over Taiwan over the next decade. The ability to source high-performance semiconductors has become a vital economic and national security issue. TSMC is the undisputed leader in the contract chip manufacturing market, and it is even more dominant when it comes to making high-end chips needed for AI and accelerated computing processes. However, the United States and other Western countries can no longer count on an uninterrupted supply of chips from Taiwan.

In response, Western governments are investing in Intel and helping position the chip giant as a credible successor to TSMC. Intel’s manufacturing business looks poised for enormous growth over the next decade, and there’s a good chance it will have a transformative effect on the stock. With shares still down 44% from their high, now seems like a good time to build a long-term position in the semiconductor stock.

South Korea’s super app

Jeremy Bowman (Coupang): Coupang (NYSE:CPNG) hasn’t gotten much attention on Wall Street lately, and it’s easy to see why. The stock has been a failure since its high-flying IPO in March 2021 and is now down 65% from its high reached shortly after the IPO.

Investors may have moved on to other stocks, but Coupang is worth a second look, especially since the shares appear reasonably valued and the stock still has plenty of growth potential.

First, Coupang made many comparisons with Amazon, and for good reason. The company is the dominant e-commerce platform in South Korea and uses some of Amazon’s most effective tactics. Coupang operates as both a first-party seller and a marketplace with third-party sellers, allowing it to leverage the power of the platform and collect fees from merchants using Coupang.

The company also has a Prime-like membership program called Rocket WOW, which offers free delivery and returns, fresh groceries delivered in just a few hours, and same-day delivery of non-fresh items. South Korea is one of the most densely populated countries in the world, which lends itself well to efficient e-commerce operations.

Coupang is also expanding beyond e-commerce with new businesses such as food delivery, a streaming service and digital payments, as well as international expansion.

Coupang reported 23% year-over-year growth in its most recent quarter to $6.6 billion. Its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $294 million, showing that it is growing rapidly and profitable.

Given its growth potential and reasonable valuation, taking advantage of Coupang’s stock discount seems like a good idea.

Should you invest $1,000 in Intel right now?

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions at Amazon. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Advanced Micro Devices, Amazon, Coupang and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short May 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.

A Bull Market Is Here: 2 Tech Stocks Down 44% and 65% to Buy Now was originally published by The Motley Fool

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