President Trump’s announcement of tariffs on imports from countries worldwide has rocked the stock market — and the tech-heavy Nasdaq Composite (^IXIC 0.67%) has led the decline, crashing more than 20% from its most recent high.
Why are tech stocks being hit so hard? These companies rely on production of parts and finished goods in countries around the world, from China to India — and the companies now will have to pay the new import duties as they bring these items into the U.S.
All this has prompted investors to worry about tech earnings ahead, fleeing shares of these companies. As a result, the valuations of many well-established tech players have plummeted, leaving them at dirt cheap prices.
Of course, Trump’s tariffs represent a risk, and we don’t yet know how the situation will play out. But throughout time, solid companies always have been able to manage challenges and go on to recover and grow. It’s unlikely the government and tech giants themselves will allow the worst to happen. This means now is a good time for long-term investors to go bargain hunting for stocks that may win over time.
Here are my top five dirt cheap tech stocks to buy now, each trading for 23x forward earnings estimates or less.
Image source: Getty Images.
1. Nvidia
Nvidia (NVDA 0.72%) is the global leader in artificial intelligence (AI) chips, and this has helped the company generate double- and triple-digit quarterly revenue growth over the past couple of years. We’re still in the early phases of AI growth, with, as chief executive officer Jensen Huang says, about $1 trillion of outdated computers to update worldwide — so a huge growth opportunity lies ahead.
The company recently released its latest chip architecture, Blackwell, and demand soared past supply, showing Nvidia’s strength in the marketplace. To reinforce its leadership, Nvidia recently shared its roadmap to update chips on an annual basis, with detailed information on advancements to come.
Today, Nvidia stock trades for 21x forward earnings estimates, down from about 50x just a few weeks ago. This represents a rare opportunity to get in on the leader in a high-growth market for a song — and investors who seize this chance may thank themselves a few years from now as the AI boom continues.
2. Meta Platforms
Meta Platforms (META 0.79%) represents another strong bet on the future of AI. The company is known for its social media apps, from Facebook and Messenger to WhatsApp and Instagram — but today, it’s building its presence in AI too.
Meta AI, available across its apps, has become the world’s most-used AI assistant, and Meta aims to eventually develop AI assistants to help all its users across their needs.
Why is this important? These AI assistants will spur us to spend more time on Meta’s apps — and that should encourage advertisers to advertise more there, lifting Meta’s revenue. The company announced as much as $65 billion in AI spending this year and aims to build a data center so big that it could cover part of Manhattan.
Right now, Meta is trading for 20x forward earnings estimates, down from 29x back in February. This is a great moment to get in on Meta for its long-established leadership in social media and the billions in advertising revenue that it generates — as well as the company’s potential to become an AI giant.
Image source: Getty Images.
3. Broadcom
Broadcom (AVGO 1.04%) is a networking powerhouse, producing thousands of products used in a variety of areas — from data centers to your living room. Revenue has soared in recent times as big cloud service providers (CSPs) scale up their AI infrastructure and come to Broadcom for networking solutions and its XPU chips.
Typically, Broadcom’s chips are used for networking-related tasks such as managing the flow of data — this is compared to Nvidia’s graphics processing units (GPUs), which generally are used for jobs like the training and inferencing of models.
In the most recent quarter, AI revenue jumped 77% to more than $4 billion, and Broadcom expects this positive momentum to continue. Three major CSPs are on track to each reach 1 million XPU clusters in 2027, and Broadcom is working with two other CSPs to help them create AI accelerators tailored to their needs.
Broadcom shares trade for 23x forward earnings estimates, down from more than 35x earlier this year. As the AI growth story continues, Broadcom should benefit, making today’s price a very reasonable entry point for investors.
4. Oracle
Oracle (ORCL 0.67%) has seen explosive growth in recent quarters thanks to a platform that offers users its database management expertise and a flexible cloud offering. I say “flexible” because Oracle makes it easy to use its cloud, along with other clouds such as Microsoft‘s Azure or Amazon Web Services, for example.
This has been a winning strategy for Oracle, with multicloud database revenue from Microsoft, Amazon and Alphabet‘s (GOOG -0.32%) (GOOGL -0.33%) Google Cloud soaring 92% in the recent quarter. Customer demand has reached records, and the company aims to double its data center capacity this year to keep up.
Remaining performance obligations, or contract amounts not yet invoiced, of $130 billion offer us reason to be optimistic about revenue ahead too.
Today, Oracle trades for 21x forward earnings estimates, down from more than 30x just a few weeks ago, making it another smart bargain addition to any growth portfolio.
5. Alphabet
Alphabet, trading for 16x forward earnings estimates right now, is the cheapest of the “Magnificent Seven” stocks — the group of tech giants that led market gains over the past two years.
As owner of Google Search, the world’s most popular search engine, and Google Cloud, a high-growth cloud services provider, Alphabet has built a strong business that generates billions of dollars in earnings quarter after quarter. On top of this, Alphabet is heavily investing in AI and using its own large language model, Gemini, to improve Google Search — and Alphabet sells Gemini-powered AI tools to customers of Google Cloud.
The tech giant, like Meta, recently pledged to reinforce spending in AI this year, announcing $75 billion in capital expenditures, and this could put it on track for long-term AI leadership.
And that’s why right now Alphabet looks like a steal that long-term investors won’t want to miss.
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. Adria Cimino has positions in Amazon and Oracle. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool recommends Broadcom 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.