US technology stocks staged a strong rebound on Monday, with the rising 2.27% by the close. climbed 5.79%, while surged 8.83%, leading the gains.
The renewed optimism came from progress in Washington toward ending the longest government shutdown in US history. A compromise to restore federal funding cleared its first hurdle in the Senate on Sunday evening, though final approval from Congress is still pending.
The rebound in technology stocks also came from bargain hunting, as many investors saw last week’s sharp decline as a buying opportunity. The Nasdaq fell just over 3% last week, while Nvidia dropped 7% and Palantir slipped 11.2%.
Given Monday’s strong rebound, buying major tech stocks during market dips still appears to be a worthwhile strategy. Nvidia and Palantir look like promising picks in this regard, though investors should tread carefully. Both stocks remain highly valued based on InvestingPro’s Fair Value estimates, which suggest a potential downside risk of about 9% for Nvidia and more than 50% for Palantir.
10 Beaten-Down US Tech Stocks Now Showing Signs of Recovery
Using Investing.com’s screener, we looked for other major US technology stocks that have dropped sharply in recent weeks but still appear undervalued compared to their estimated fair value. The goal was to identify companies that analysts believe have solid rebound potential based on both price weakness and strong fundamentals.
Here’s how we set up the screener for this analysis:
Nasdaq Composite member stocks
Technology sector
Market capitalization in excess of $10 billion
Decline of more than 5% over one month
Potential upside of over 10% according to InvestingPro Fair Value
Potential upside of over 25% according to analysts’ average target
This research enabled us to identify 10 stocks:
ATTENTION: Although the basic functions of the Investing.com screener are available free of charge, in this search we used metrics reserved for InvestingPro, Pro+ plan subscribers.
These stocks, which have dropped between 5.9% and 20.5% over the past month, now appear undervalued by 12% to 62% based on InvestingPro Fair Value. Analysts, meanwhile, see upside potential ranging from 27.9% to 42.7%.
Conclusion
These large US technology stocks, which have struggled recently, may now be well placed to outperform as market sentiment improves. Hopes of a government reopening, expectations of a Fed rate cut, strong third-quarter results, and typical year-end optimism all suggest potential for solid gains in the weeks ahead — both for the stocks highlighted here and for the broader tech sector.
For those with different strategies, the screener also provides over 20 preconfigured searches tailored to various investment styles and goals.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation, or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belong to the investor. We also do not provide any investment advisory services.
