Investment Opportunities Amid Tech Stock Pullback
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Source: NASDAQ.COM
- Market Pullback: Tech stocks are down about 5%, presenting investors with an opportunity to buy quality tech stocks at a discount, particularly Nvidia and Microsoft, which are trading at forward P/E ratios of 22 and 24, respectively, indicating relative undervaluation.
- Nvidia's Market Dominance: Nvidia generated $62.3 billion in data center revenue, accounting for 91% of its total revenue, and holds an 86% share of the AI chip market, showcasing its strong competitive position in the rapidly growing AI sector.
- Microsoft's Challenges and Opportunities: Despite a 17% decline in stock price year-to-date, Microsoft's investment plans in AI and cloud computing indicate future growth potential, especially with projected AI spending in 2026 exceeding that of 2025, although concerns about OpenAI's profitability loom.
- Analysts' Optimistic Outlook: Wall Street analysts largely view Nvidia as a buy, with a median price target of $265 per share, suggesting a potential upside of about 45% over the next 12 months, reflecting confidence in its long-term growth prospects.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 204.650
Low
200.00
Averages
264.97
High
352.00
Current: 204.650
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Revenue Growth: Nvidia reported an astonishing 85% revenue growth last quarter, with Wall Street projecting a 96% increase next quarter and 41% for the following year, showcasing the company's robust competitiveness in a rapidly growing market and indicating significant future profitability.
- Rising Capital Expenditure Expectations: AI hyperscalers are expected to spend around $650 billion in capital expenditures this year, with Nvidia projecting this to rise to $1 trillion by 2027, reflecting strong demand growth in the coming years and further solidifying its market position.
- Long-Term Growth Potential: By 2030, global data center capital expenditures are expected to reach $3 trillion to $4 trillion annually, indicating that Nvidia will continue to experience growth beyond 2027, making it a smart long-term investment opportunity for investors.
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- Strong Revenue Growth: Nvidia reported an 85% revenue growth last quarter, with expectations of 96% growth next quarter and 41% for the following year, suggesting significant investment value as these figures are not reflected in the current stock price.
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- Strong Revenue Growth: Nvidia reported an astonishing 85% revenue growth last quarter, with Wall Street projecting a 96% increase next quarter and 41% for the following year, showcasing the company's robust competitiveness in a rapidly growing market and indicating significant future profitability.
- Rising Capital Expenditure Expectations: AI hyperscalers are expected to spend around $650 billion in capital expenditures this year, with Nvidia projecting this to rise to $1 trillion by 2027, reflecting strong demand growth in the coming years and further solidifying its market position.
- Long-Term Growth Potential: By 2030, global data center capital expenditures are expected to reach $3 trillion to $4 trillion annually, indicating that Nvidia will continue to experience growth beyond 2027, making it a smart long-term investment opportunity for investors.
See More
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- Consumer Stock Investment Opportunities: Investing $5,000 across these companies allows for effective risk diversification while capitalizing on the long-term growth potential in the food and beverage sector, especially as consumer demand for essential goods remains strong amid economic fluctuations.
See More
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- Valuation Advantage: Nvidia's forward P/E ratio stands at 23.5, which is lower than the S&P 500's 22, indicating that the market has not fully priced in its future growth potential, allowing investors to buy in at a relatively cheap price.
- Strong Revenue Growth: Nvidia reported an 85% revenue growth last quarter, with expectations of 96% growth next quarter and 41% for the following year, suggesting significant investment value as these figures are not reflected in the current stock price.
- Capital Expenditure Outlook: AI hyperscalers are projected to increase capital expenditures from $650 billion this year to $1 trillion by 2027, further driving demand and growth potential for Nvidia, highlighting its leadership in the industry.
- Long-Term Growth Potential: Nvidia anticipates global data center capital expenditures to reach $3 trillion to $4 trillion annually by 2030, indicating that the company will continue to benefit from industry growth in the coming years, making it a prime investment opportunity.
See More
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- Significant Revenue Growth: Anthropic's annualized revenue has tripled since the end of 2025, exceeding $30 billion in early 2026, indicating strong performance in the AI market and suggesting continued growth potential.
- Deep Partnership with Amazon: Since 2023, Anthropic has partnered with Amazon, utilizing over 1 million Trainium 2 chips, with plans to spend over $100 billion on AWS over the next decade, further solidifying its position in AI infrastructure.
- Surge in Google Cloud Demand: Anthropic plans to use up to 1 million of Google's TPUs, contributing to a 63% year-over-year revenue increase for Google Cloud in the last quarter, highlighting the strong demand and market potential for AI technology.
- Support from Broadcom and Nvidia: Broadcom expects its AI chip revenue to exceed $100 billion by fiscal 2027, while Nvidia's GPU demand remains robust with an 85% year-over-year growth, providing strong support for Anthropic's computing capacity expansion.
See More
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- Significant Revenue Growth: Anthropic's Claude has seen its annualized revenue triple since the end of 2025, exceeding $30 billion in early 2026, reflecting strong demand and growth potential in the AI market.
- Deepening Strategic Partnerships: Anthropic's collaboration with Amazon intensifies, with plans to invest over $100 billion in AWS over the next decade, indicating the company's commitment to cloud infrastructure and long-term strategy in AI.
- Diversified Computing Strategy: By utilizing Alphabet's TPUs and Nvidia's GPUs, Anthropic can maintain Claude's operations during demand spikes, ensuring its competitive edge in the rapidly evolving AI landscape.
- Supply Chain Expansion: Broadcom will supply Anthropic with next-generation TPUs and AI networking equipment, with AI chip revenue expected to exceed $100 billion by 2027, further solidifying Anthropic's critical role in AI infrastructure development.
See More
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- Stock Surge: CoreWeave's stock has soared 194% since its IPO, reflecting strong market confidence in its demand and future potential in the AI sector, which is likely to attract more investor interest.
- Order Backlog Growth: The company has reached a contracted order backlog of nearly $100 billion, with new clients like Meta and Anthropic, showcasing its strong appeal and customer diversification in the AI computing market, potentially driving further revenue growth.
- Strategic Partnership with Nvidia: CoreWeave has established a close relationship with Nvidia, which owns over 47 million shares of CoreWeave and has committed to purchasing any excess compute capacity until 2032, enhancing CoreWeave's market position and providing security for future growth.
- Impact of Nasdaq-100 Inclusion: CoreWeave's addition to the Nasdaq-100 is expected to attract fund purchases of its stock, boosting its price in the short term, although the long-term impact may be limited, still indicating market recognition of its growth prospects.
See More
