Bank of America is suggesting that investors seize the opportunity to buy technology stocks amid a recent market dip. The Nasdaq Composite, heavily laden with tech stocks, has slipped into correction territory, tumbling 12% since its December high. So far this year, it has declined about 8%, which is notably worse than the S&P 500’s 3.6% drop. However, the firm believes certain stocks in the tech sector have been oversold and offer promising prospects. Key buy-rated stocks highlighted include Analog Devices, Nvidia, Broadcom, Marvell, and AppLovin.
Starting with Analog Devices, the firm is urging investors to capitalize on the current downturn in the semiconductor manufacturer. Analyst Vivek Arya points out that after various discussions with management, the stock appears to be in an excellent position for growth. “ADI remains hopeful for a recovery in the automotive and industrial markets by the second half of 2025. They feel they’ve hit the bottom, though there’s some uncertainty about the pace of growth,” Arya commented. Despite this uncertainty, the firm continues to hold the stock in high regard, noting that “the trendline suggests more upside.” Arya further explained that Analog Devices is minimally affected by tariff uncertainties. “We maintain our Buy rating and our top analog pick,” he added. As of now, Analog Devices’ shares have decreased by 4.6% this year.
Moving on to Marvell Technology, Arya identifies numerous positive catalysts on the horizon. Following a series of meetings with CEO Matt Murphy, the firm left with an optimistic outlook for both the short and long term. Arya highlighted Marvell’s substantial opportunity in the data center sector, stating, “We anticipate an increase in the total addressable market towards roughly $100 billion, aiming for a 20% market share over time.” Additionally, the firm’s upcoming analyst day in June could see an upward revision of its growth forecast. Despite the company’s shares having fallen 37% this year, they are still regarded as attractive, as noted by Arya.
As for AppLovin, the firm describes the mobile app publishing tech company as an enticing buy right now. Analyst Omar Dessouky, after engaging in a series of discussions with the company, believes the bullish outlook is becoming more convincing. Dessouky claims that AppLovin benefits from being an early mover and stands to gain from increased digital spending. Despite recent short-seller reports, Dessouky asserts that investors remain largely unaffected. “The recent market slowdown and various short-seller reports, in our view, present a chance to acquire a growth-oriented stock early in its upward trend, at a significant discount compared to profitable high-growth companies like Google and Meta, which are also beneficiaries of AI advancements,” he wrote. Year-to-date, AppLovin’s stock is down about 5%.
In further comments on Marvell, Arya expressed confidence in the company’s AI potential and execution capabilities, suggesting that Marvell might raise its growth projections at its upcoming analyst day. He expects the market for data centers to grow significantly, possibly capturing 20% market share of a $500 billion long-term AI opportunity.
Regarding Broadcom, the firm rates the stock a buy due to its strong and diverse exposure to enduring product cycles in industries such as smartphones, cloud data centers, telecom, and enterprise storage. With EBITDA and free cash flow margins exceeding 45%, Broadcom stands as one of the most profitable semiconductor firms, potentially driving robust cash returns.
For AppLovin, Dessouky reiterated that the management’s articulation of their growth thesis is becoming clearer with every investor meeting. He noted that recent market fluctuations and short-seller reports create an opportunity to acquire this growth-oriented company at steep discounts relative to major market players in AI and high-growth software sectors.
Arya reaffirmed their Buy recommendation for Analog Devices, noting its resilience, having outperformed the SOX index in 23 out of 29 instances when the index fell by over 10% since 2010. Despite uncertainties about growth trajectories, the trendline points to potential upside.
Finally, Arya maintains a Buy rating on Nvidia, setting a price objective of $200, following numerous product and partnership announcements at the company’s flagship GTC conference. Post-keynote discussions with Nvidia’s CFO highlighted the company’s continued strength and dominance in the AI value chain, supported by its comprehensive hardware, software, and services model.
