3 Tech Stocks to Buy on the Dip: June 2024

Stocks to buy

The trade in technology stocks is growing volatile. The shares of microchip and semiconductor companies, which had led the market higher in this year’s first half, are selling off as we near the end of June. At the same time, several other well-known technology stocks are in the red this year.

Whether due to disappointing earnings, competitive threats or being viewed as overvalued and expensive, several tech stocks are down right now and missing out on the bull run in equities. Shrewd investors will see the current situation as a buying opportunity and capitalize on it. Here are three tech stocks to buy on the dip: June 2024.

Nvidia (NVDA)

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Investors hoping to take a position in Nvidia (NASDAQ:NVDA) stock, now’s your chance. On the day of this writing, NVDA stock is down 6%, bringing its five day decline to 10%. After splitting on a 10-for-1 basis on June 10, Nvidia stock quickly rose to an all-time high and briefly became the world’s most valuable publicly traded company before selling off to end the year’s first half.

But don’t expect NVDA stock to be down for long. Analysts say the current drop in the company’s share price is due to profit taking and the expiry of options contracts at the end of the second quarter. Notably, Nvidia faces a rare “triple witching” options contract expiration. This is when options contracts tied to an individual stock, index and exchange-traded fund (ETF) expire at the same time, typically at the end of a quarter. Nothing has fundamentally changed with Nvidia stock or the company’s growth story.

Year-to-date, NVDA stock is still up 150% and its shares have nearly tripled in the last 12 months.

Tesla (TSLA)

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Investors, Do you believe Elon Musk? If the answer is “yes,” there might be a buying opportunity in Tesla’s shares (NASDAQ:TSLA). Of course, taking a position in the electric vehicle maker is not without risk, and the share price will likely remain volatile for the foreseeable future. However, for investors with strong stomachs and a long time horizon, TSLA stock looks like a buy-the-dip candidate.

So far in 2024, TSLA stock is down 26%. The drop comes amid slowing sales of its electric vehicles and gloomy forward guidance from management. However, the company’s share price has been up more than 1,100% over the past five years, illustrating the opportunity for investors. Tesla is in transition right now as it focuses on new pursuits that include supercomputers and humanoid robots. Again, it is not for everyone, but it is a potential tech stock to buy on the dip.

Adobe (ADBE)

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The sell-off in Adobe (NASDAQ:ADBE) stock looks a little overdone after the company’s most recent financial results. Sure, the company behind creative software products such as Illustrator and Photoshop still faces a threat from artificial intelligence (AI), but it’s responding. ADBE stock recently popped 15% higher after the design software company reported financial results that beat Wall Street forecasts and raised its full-year guidance.

However, even with the jump in post-earnings, Adobe’s stock has remained down nearly 10% this year and has largely missed the current market rally. That said, Adobe’s first-quarter EPS of $4.48 was better than the $4.39 expected among analysts. Sales of $5.31 billion beat estimates of $5.29 billion and were up 10% from a year earlier. Management said they continue adding AI to their suite of creative software products, notably Firefly.

While not out of the woods, ADBE stock is trending in the right direction and more gains can be expected, making Adobe a tech stock to buy on the dip.

On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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