Reddit Says Buy These 7 Stocks At A Discount After Latest Market Crash
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The global selloff earlier this week caused investors to shed risky, overvalued assets and increase exposure to safe havens. But as with every selloff, the market rebounded as investors digested the possibility of rate cuts. Some analysts called the market’s response to a softer-than-expected jobs report an overreaction.
While it’s almost impossible to time the market, one thing can be said with certainty: the overall market goes higher in the long run. From 1928 through 2023, the U.S. stock market rose on average 9.8% per year. No matter how hard the markets fall, they come back up sooner or later. That’s why it’s always a good idea to buy quality stocks when they are down.
But what stocks are trading at a discount? We surveyed several investing-related discussion boards on Reddit to determine what retail investors are buying on the dip.
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Amazon
An overwhelming number of Redditors on the subreddits we surveyed think Amazon.com (NASDAQ:AMZN) is trading at a discount and should be bought. Over the past six months, Amazon stock is down by approximately 18%. After the latest earnings results from Amazon, JMP reiterated its Outperform rating on the stock and increased its price target to $245, citing AWS growth and demand trends.
Nvidia
Redditors are divided over NVIDIA (NASDAQ:NVDA). Some say the stock is expected to continue posting losses as the demand for its chips will lose steam, while others believe the company is just getting started. However, following the latest selloff, the number of Redditors urging to buy the dip on NVIDIA spiked across investing subreddits. NVDA is down 18% in the past 30 days. New Street Research has upgraded NVDA to Buy from Neutral, calling the latest selloff a “healthy correction.”
Qualcomm
Redditors highlight Qualcomm Inc (NASDAQ:QCOM) as an underdog AI stock, trading at 20 times earnings and having lost about 23% in the past 30 days. They like Qualcomm for its strong growth in the automotive segment, rebound in the handsets business, and upbeat guidance.
Qualcomm’s handsets revenue rose 12% in the latest quarter, while the automotive segment saw an 87% year-over-year growth.
Alphabet
Redditors say Alphabet (NASDAQ:GOOGL) is one of the top stocks to buy on the latest dip because of its AI research and long-term growth opportunities in other areas like Waymo and Cloud. During a recent discussion, Alphabet bulls on Reddit pointed to the latest research showing Alphabet’s large language model, Gemini, beating all other LLMs. Some Redditors also believe Alphabet is better than Tesla for driverless cars.
Alphabet shares took another hit after the company lost an antitrust suit by the Department of Justice. Wedbush said in a fresh note that the development does not affect any near-term operations at the company and that the outcome may take “several quarters and possibly years.”
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Broadcom
Broadcom Inc (NASDAQ:AVGO) is also down 17% over the past 30 days, and investing-related discussion boards on Reddit are full of investors calling the chipmaker one of the best AI stocks to buy on the dip. Last month, Citi said based on an investor survey that Broadcom is “catching up to” Nvidia regarding positive sentiment. Reuters has reported that OpenAI was talking with Broadcom about a new AI chip. China’s ByteDance is also reportedly discussing an advanced AI processor with the company.
Taiwan Semiconductor
Taiwan Semiconductor (NYSE:TSM) has been down 16% in the past 30 days. Redditors think this stock should be bought on the dip because the company makes AI chips for almost all notable AI front-runners, including Apple, Nvidia, AMD, and Broadcom. Taiwan Semiconductor’s guidance for the ongoing quarter came ahead of the Street’s estimates.
AMD
Redditors have been fans of Advanced Micro Devices Inc. (NASDAQ:AMD) for quite some time now. Still, the latest market selloff has them drooling over the stock, especially after the chipmaker posted strong second-quarter results.
Bernstein increased its price target on AMD to $150 from $140 after the results.
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