Nasdaq Stock Market Correction: 2 Ultra-Cheap Stocks to Buy Right Now – The Motley Fool

Nasdaq Composite (^ixic -4.00%)) It is currently 13% below the recent high, with high-tech indexes officially placed in the corrections area. And while there are certainly good reasons why the market has been under pressure these days, such as the fear of a recession and the potential impact of tariffs, this situation creates a purchase opportunity for patient long-term investors to buy great business stocks.

Two of the current Nasdaq fixes that look particularly appealing are chip makers Advanced Micro Devices (AMD) -3.67%)) and PayPal (pypl -3.29%)). There is no guarantee that market volatility will sink anytime soon, but these are two great businesses that can now be a great bargain.

1. AMD: other AI chip manufacturers are on sale

Advanced microdevices well known in the initial AMD are operated in the data center GPU space. nvidia. But overlooking this winning business would be a big mistake.

For starters, there is more space in AMD. it's not Compete with Nvidia. They make desktop and laptop processors and get market share from leaders Intel For years. Create gaming chips and create chips for embedded applications, including self-driving cars.

AMD's data center business has almost doubled its revenues compared to the previous year in 2024, and the PC chip business has grown rapidly. In conclusion, AMD's adjusted EPS increased 25% in 2024, and the company expects revenue growth of 30% year-on-year in the first quarter of 2025.

Over the past decade or so, AMD has done an incredible job of building its product portfolio and harnessing the AI ​​boom. It still has a great opportunity ahead of that – the data center industry is expected to grow by 140% by 2030, and the self-driving car industry is projected to grow even faster, with some examples. Rapid growth and stock trading have been earnings around 21 times earlier, and it could be a great opportunity now.

2. PayPal: Cash Machines with Room to Grow

PayPal has fallen sharply after its latest earnings report disappoints investors seeking growth, with stocks currently trading with rock bottom valuations less than 14 times their 2025 earnings, less than 14 times per share. However, the drop appears to be very myopic and the inventory looks like an incredible bargain from a long-term perspective.

For one thing, PayPal overhauled its leadership team about a year and a half ago. The initial focus is on efficiency, and PayPal's recent EPS growth shows how successful it has been. CEO Alex Chriss and his team have since made some major moves to reinvigorate growth, but many of these have yet to be reflected in the numbers. For example, PayPal's highly anticipated advertising platform, which just released in mid-October, takes time.

Plus, PayPal's leadership sees an incredible opportunity to return to a sustainable growth business. For example, the company is seeing an opportunity to add billions of dollars in revenue from better monetization of Venmo. We also see great opportunities from online payments and cross-selling products from its ecosystem to more than 400 million users.

But for now, this is a company that generates around $6 billion in free cash flow per year, and almost all of them use it to buy back stocks and take advantage of discount valuations.

Expect to ride a roller coaster – at least for now

The last thought is to point out that I have absolutely no idea when the turbulence in the market will die. And in the economy actually It could be in a recession or the economic situation continues to deteriorate, and both of these stocks could fall further in the short term.

The point is that these are two great businesses and are currently trading with attractive ratings. I don't know what they'll do in the coming weeks or months, but investors who buy and hold for years are happy they bought while they're so beaten up like this.