The recent decline in the stock market has opened up some buying opportunities. Several stocks are currently at their lowest prices in years, making it a good time for savvy investors to pick up shares at discounted rates.
I’ve been focusing on three stocks lately: Microsoft (NASDAQ: MSFT), Trade Desk (NASDAQ: TTD), and Nvidia (NASDAQ: NVDA). Honestly, I believe all three are undervalued right now. If you invest now, you might just see significant returns that could last for a long time.
Investors shouldn’t hesitate for a better price on these stocks since the market might reassess their value at any moment. It feels like the right time to make a move.
Microsoft has held a high valuation in the tech sector since about 2020, but that has changed in recent months due to general weaknesses in the tech market and less-than-stellar earnings reports. Looking at operating profits, I think it’s insightful; this measure excludes the effects of its investment in OpenAI, which has positively impacted net income recently. Remarkably, Microsoft’s stock is nearing its lowest valuation ever, barring any major downturn in the upcoming year.
What’s shifted in the last few months? Honestly, not much. Microsoft is still a leader in the industry, recently experiencing strong growth. This kind of opportunity to buy its stock doesn’t come around frequently, so I feel investors shouldn’t let it pass them by.
On the other hand, Trade Desk doesn’t have the same level of certainty as Microsoft. Although it’s still showing solid performance, it’s encountering some hurdles with its advertising platform. In the third quarter, the company achieved an 18% growth year-over-year, which, although slower than previous periods, is still commendable. They’re a bit affected by a decrease in political ad spending compared to last year.
Wall Street anticipates a 17% growth in earnings by 2026, so the fundamental growth potential for Trade Desk seems intact. Despite that, the stock remains surprisingly undervalued, available at just 13 times its projected forward earnings. That sounds like a great buying opportunity to me.
Then there’s Nvidia. We often don’t associate it with the word “bargain,” but I think it’s time to reconsider that. The stock hasn’t experienced much movement recently, even though many of its major clients have announced significant capital investments. It’s projected to grow around 64% in the fiscal year 2027, yet it’s currently trading at a forward P/E ratio of only 24. I believe that is quite reasonable.
In comparison, the S&P 500 is at a forward P/E of 21.8, suggesting that Nvidia is not overpriced right now. Also, the upward trend in generative AI spending isn’t likely to fade anytime soon unless something drastic occurs to halt it. Nvidia’s estimates indicate that global data center capital spending could soar to $3 trillion to $4 trillion by 2030, benefiting the company and others in the sector significantly.
Honestly, I can’t predict if we’ll hit those numbers, but I feel confident that AI spending will continue to rise in the coming years. So, investing in Nvidia could be a smart choice now.
Before jumping in on Nvidia, though, here’s something to consider:
The analyst team at Motley Fool Stock Advisor has identified what they believe are the top 10 best stocks worth buying at this moment…and Nvidia wasn’t included in that list. However, those ten stocks are thought to hold promise for generating substantial returns in the years ahead.
Looking back at previous stock recommendations, your investment records show how remarkable the returns could be; for instance, had you invested in Netflix, or Nvidia at the right times, your returns would be quite impressive!
The stock advisor has boasted an incredible average return of 884%, outpacing the S&P 500’s 193% in performance. It’s a good idea to act on current recommendations.
*Stock Advisor will refresh on February 15, 2026.
