Some quality stocks may have been sold off too aggressively.
What are the best bargain opportunities right now?
The closed at 25,169.50 on Wednesday, June 10, down 1.98%, marking its fifth loss in the last six sessions. The tech-heavy index now sits about 7% below its June 2 record high.
Markets were pressured by renewed geopolitical tensions after President Trump said negotiations with Iran were taking too long and threatened additional strikes. The comments pushed oil prices higher and weighed on risk sentiment, with technology, industrial, and cyclical stocks among the biggest losers.
The latest decline follows a broader pullback in technology shares. Last Friday, the Nasdaq fell more than 4% as semiconductor stocks sold off sharply. Investors were disappointed after Broadcom failed to raise its AI chip revenue outlook despite elevated expectations, triggering weakness across the sector.
Macroeconomic concerns have added to the pressure. US inflation rose to 4.2% in May, its highest level in three years, reducing expectations for Federal Reserve rate cuts. Meanwhile, the May jobs report showed stronger-than-expected hiring, reinforcing concerns that interest rates could remain higher for longer.
Despite the recent weakness, several factors could support a recovery. Any easing of tensions between the US and Iran could lower oil prices, reduce inflation concerns, and improve the outlook for growth stocks. At the same time, some analysts believe the selloff has created opportunities in quality technology companies that continue to benefit from long-term AI trends.
As a result, several Nasdaq-listed technology stocks now trade at meaningful discounts to valuation estimates while maintaining solid underlying fundamentals.
9 Nasdaq tech stocks show upside potential of +20% to +72% following their correction
To identify them, we turned to the Investing.com screener, using the following criteria:
Market: Nasdaq Composite
Sector: Technology
Drop of more than 5% over one week
Upside potential of over 20% according to InvestingPro Fair Value, which synthesizes several recognized valuation models
Financial health score above 2.5/5
This research has allowed us to identify 9 opportunities:
Specifically, these Nasdaq tech stocks that have fallen sharply in recent sessions are now undervalued by 20.4% to 72.6% according to InvestingPro Fair Value, while posting solid health scores.
Among these stocks are:
TMUS: T-Mobile US Inc (NASDAQ:) is the leading U.S. telecom operator in terms of growth, with service revenue up 11% in the first quarter of 2026 to $18.8 billion, and adjusted EBITDA up 12% to $9.2 billion. In a Nasdaq market battered by sector rotation away from high-multiple tech stocks, TMUS stands out as a defensive exception: its beta of less than 0.5 gives it natural resilience to market corrections, while its growth profile remains superior to that of a typical telecom operator. Management raised its annual guidance, bringing net postpaid additions to 950,000–1.05 million and adjusted free cash flow to $18.1–18.7 billion. The next quarterly earnings call is scheduled for July 23, 2026.
MSFT: Microsoft Corporation (NASDAQ:) is currently trading around $403, down nearly 27% from its annual high of $555.45—a rare discount for one of the world’s strongest tech franchises. In the third quarter of fiscal year 2026, the company reported revenue of $82.9 billion, up 18% year-over-year, with EPS of $4.27, up 21%, exceeding expectations in both cases. Cloud revenue growth surged 29% year-over-year, driven by Azure’s acceleration, with Q4 FY2026 guidance between $86.7 billion and $87.8 billion in revenue. The market correction reflects concerns about AI monetization, not a deterioration in fundamentals. Next catalyst: Q4 earnings on July 28, 2026.
However, many other stocks on this list have more attractive profiles.
TMUS: T-Mobile US Inc (NASDAQ:) continues to stand out as one of the fastest-growing US telecom operators. In Q1 2026, service revenue rose 11% to $18.8 billion, while adjusted EBITDA increased 12% to $9.2 billion. The company also raised its full-year outlook, highlighting strong subscriber growth and free cash flow. With a relatively low beta, T-Mobile has proven more resilient than many technology stocks during recent market volatility.
MSFT: Microsoft Corporation (NASDAQ:) is trading well below its yearly high despite continued strong operating performance. In Q3 FY2026, revenue climbed 18% year over year to $82.9 billion, while earnings per share increased 21% to $4.27, beating expectations. Growth in cloud services, particularly Azure, remains a key driver, and the recent pullback appears tied more to concerns around AI monetization than any weakness in the company’s fundamentals.
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any assets and does not constitute an offer, solicitation, recommendation, or advice to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky; therefore, any investment decision and the associated risk are the sole responsibility of the investor. Additionally, we do not provide any investment advisory services.
