If you haven’t checked your 401(k) or brokerage accounts in the past month, I wouldn’t suggest rushing to look at them now. The recent market corrections are likely hurting them. If you invest with a short-term mindset, it’s undoubtedly a worrying time. But if you are a long-term investor, you might want to think of this time as a quite normal thing (though admittedly not fun). It can also be a great time to buy some quality stocks at a discount.
Let’s look at two top tech stocks you can buy this month while they are on sale.
Nvidia
Nvidia (NVDA -1.50%) has been a market darling for the past few years, but even it has been caught in the recent market sell-off, down about 20% from its highs. For investors bullish on artificial intelligence (AI), this could be a great buying opportunity.
AI has been all the rage recently, as the technology has made its way to the mainstream and is starting to play a vital role in our lives, albeit mostly as it relates to work at this point. AI is still in its early days, which is leading to a race of large tech companies and well-funded AI start-ups looking to build out better and more advanced AI models. In order to do this, AI models currently need to be trained using ever-increasing computing power. This is where Nvidia comes in.
The company is the market leader in graphics processing units (GPUs), which are the primary chips used to provide the necessary processing power to train AI models and also to run AI inference. It has become the dominant maker of GPUs in large part due to its CUDA software platform, which it created to allow developers to program its chips for tasks beyond their original purpose of helping improve video game graphics. It took about a decade before its closest competitor, Advanced Micro Devices, created its own software platform, which not only gave Nvidia a huge technological head start, but also allowed it to become the de facto program on which developers learned to program GPUs.
This has led to Nvidia being the biggest AI winner and the company best positioned to continue to benefit from AI infrastructure spending. And make no mistake, AI infrastructure spending is still on the rise. Much of this is coming from cloud computing companies, which operate infrastructure-as-a-service models. These companies provide customers foundational AI models and services that they then use to build out their own AI models — and business has been booming. The big three cloud computing companies are all capacity-constrained, which is leading to huge AI infrastructure spending. Meanwhile, companies like Meta Platforms and OpenAI are building out their own AI data centers to try to create better AI models.
This has all led to huge growth for Nvidia, which has more than doubled its revenue in each of the past two years. Meanwhile, strong growth is expected to persist as demand for its chips remains robust.
Following the market sell-off, the stock is cheap, trading at a forward price-to-earnings (P/E) ratio of below 27 times 2025 analyst estimates and a price/earnings-to-growth (PEG) ratio of 0.5, with PEG ratios under 1 considered undervalued.
Image source: Getty Images.
Amazon
While known as an e-commerce retailer, make no mistake Amazon (AMZN -1.03%) is a tech company through and through. In fact, its largest business by profitability is its cloud computing unit, Amazon Web Services (AWS). AWS was born out the company’s need to better scale its own internal infrastructure. Then it realized other companies needed the same help.
AWS was launched in 2006, essentially creating the infrastructure-as-a-service industry. Today it is the largest cloud computing company provider in the world, ahead of Microsoft‘s Azure and Alphabet‘s Google Cloud. Like its rivals, Amazon benefits from the AI boom as customers look to create their own AI models and applications through the AWS platform.
Amazon helps its customers do this through its Bedrock and SageMaker platforms. With Bedrock, it offers its customers a number of already trained foundational AI models from both Amazon as well as other AI companies, such as Anthropic and DeepSeek, that they can then fine-tune. Meanwhile, customers who need more control and flexibility can use its SageMaker solution to then train and deploy more custom AI models.
AWS has been seeing solid growth, including 19% revenue growth last quarter, but like other cloud computing companies, it has been capacity-constrained. As such, the company plans to spend a whopping $100 billion in capital expenditures (capex) this year, mostly aimed at building out data centers for AI. Amazon has always been willing to spend big to come out on top and this is just the latest example.
The company has also developed its own custom AI chips through its Annapurna Labs subsidiary and some technology licensing from Marvell Technology, which it uses in conjunction with Nvidia GPUs. This helps give the company a cost advantage among its cloud computing peers.
In addition to its cloud business, Amazon is still the leader in e-commerce, where it is using AI in a variety of ways. This includes offering AI tools to make it easier for third-party sellers to list their goods on its platform, to better match consumers with items, and to improve the customer review process. It has also been using AI to help reduce costs, from planning better delivery routes to using AI-powered robots in its warehouses.
Trading at a trailing P/E of 36, the stock is at one of the cheapest valuations it has been in quite some time.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Marvell Technology and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
