Plenty of stocks are down quite a bit just since the middle of the month. But it’s Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) that’s arguably inflicted the most net damage. The S&P 500’s (SNPINDEX: ^GSPC) second-biggest name is now sitting 15% below its mid-May peak, clearing the way for other similarly sized names to suffer similar stumbles. And many of them have.
Veteran investors know, however, that such setbacks are opportunities more often than they’re omens.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
With that as the backdrop, here’s a closer look at three megacaps to buy on the dip led by Alphabet.
Broadcom
The proliferation of artificial intelligence (AI) has been a boon for Broadcom’s (NASDAQ: AVGO) business. Shares are up more than 556% since late 2022, in fact, on more than a doubling of the tech company’s revenue and comparable growth of its bottom line.
Of course, if demand for AI solutions weakens and, as a result, undermines demand for AI data center hardware, this growth will slow. If and when it does, AVGO’s steep valuation suddenly becomes a liability.
The likelihood of a dramatic reduction in demand for data center connectivity equipment, however, is actually pretty low. Owners and operators seem pretty committed to the $725 billion they’ve earmarked to invest in infrastructure this year, no matter how much demand for the service it provides is actually in the cards. This ticker’s 20% pullback from its early June peak — mostly due to disappointing Q3 guidance — may already fully price in whatever headwinds are blowing here.
Meta Platforms
Shares of Facebook parent Meta Platforms (NASDAQ: META) were falling well before the recent marketwide stumble. It just accelerated the decline. This stock’s now down 30% from last August’s peak and still knocking on the door of new multi-month lows, mostly because investors have been shellshocked by Meta’s 2026 capital expenditure budget, which is up to $145 billion.
Largely lost in the noise is the fact that Meta is perhaps positioned as well as any company can be to do something constructive with its AI computing capacity. After all, it’s got 3.56 billion consumers using at least one of its products at least once every day.
And the evidence of this argument is in the numbers. Although its active headcount actually fell in Q1, total ad impressions still grew 19% year over year, while the average price per impression improved 12%.
-1024x797.jpg "Liberty Lifestyle: America Has a Trust Problem")
-1024x683.jpg "Florida Roads Become a Battleground for Illegal Immigration")
