The recent stock market weakness has opened up some buying opportunities in some key areas. Some stocks have hit the lowest levels seen in years, and savvy investors can pick up stocks on the cheap.
Three stocks I’ve been watching recently are microsoft(NASDAQ:MSFT), The commercial table(NASDAQ:TTD)and NVIDIA(NASDAQ: NVDA). I think all three are bargain stocks and by investing now, they could help set you up for life based on the market-beating returns they can produce.
Will AI create the world’s first billionaire? Our team just published a report on a little-known company called “Indispensable Monopoly” that provides critical technology that both Nvidia and Intel need. Continue “
The market could revalue these stocks any day, so investors shouldn’t wait for a better price for this trio; Now is the time to act.
Image source: Getty Images.
Microsoft has had a premium valuation in the tech space since around 2020. However, that premium has been erased in recent months due to overall weakness in the tech sector and a poorly received earnings report. I prefer to value Microsoft shares using operating profits, as it does not include the effects of its investment in OpenAI, which has caused its net income to skyrocket in recent quarters. By that measure, Microsoft is almost at the cheapest level it has reached outside of the 2023 sale.
MSFT Operating PE Ratio Data by YCharts
What has changed in recent months? Nothing. Microsoft is still in a dominant position in its industry and just achieved one of its best quarters in terms of growth during that period. It is rare to have an opportunity like this to buy Microsoft stock and investors should not waste it.
MSFT Revenue Data (Quarterly YoY Growth) from YCharts
The Trade Desk is not all green flags like Microsoft is. It has some challenges it faces with its advertising platform, although it is still producing good results. In the third quarter, The Trade Desk reported 18% year-over-year growth. While this is slower than previous quarters, it is still an impressive growth rate. Additionally, the prior year was boosted by third-quarter political ad spending, so The Trade Desk had to deal with some headwinds now.
By 2026, Wall Street expects 17% revenue growth, so it’s not like The Trade Desk’s entire growth thesis is in the trash. Despite this, The Trade Desk stock is valued at an incredibly low level. For just 13 times forward earnings, you can own a stock that’s growing in the teens. It’s a real bargain and I think investors can confidently take a position in the stock at this price.
TTD PE Ratio Data (Forward) from YCharts
Lastly is Nvidia, a stock not usually associated with the word “deal.” However, I think that’s exactly what Nvidia is and investors should take advantage of this opportunity. Despite many of its biggest customers announcing eye-popping capital spending numbers, Nvidia’s stock has barely moved. It now trades for just 24 times forward earnings, even though it is forecast to grow at a rate of 64% in fiscal 2027 (ending January 2027).
NVDA PE Ratio data (forward) by YCharts
That’s not a huge premium over the broader market, as measured by the S&P 500. With the S&P 500 trading at 21.8 times forward earnings, Nvidia stock is almost too cheap to ignore right now. Additionally, 2026 will not be the end of high spending on generative AI (aside from an event that causes all AI spending to cease). Nvidia believes that global data center capital expenditures could reach between $3 and $4 trillion by 2030, resulting in massive profits for Nvidia and its peers.
I’m not sure if we’ll reach those levels, but I’m confident that AI spending will increase in the coming years, making Nvidia an obvious stock to buy now.
Before you buy Nvidia stock, consider this:
He Varied and Dumb Stock Advisor The analyst team has just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you would have $414,554!* Or when NVIDIA made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you would have $1,120,663!*
Now, it is worth noting stock advisor The total average return is 884.%: An overwhelming outperformance of the market compared to the S&P 500’s 193%. Don’t miss the latest Top 10 list, available with Stock Advisorand join an investing community created by individual investors for individual investors.
See the 10 actions »
*Stock Advisor returns from February 15, 2026.
Keithen Drury holds positions at Microsoft, Nvidia and The Trade Desk. The Motley Fool has posts on and recommends Microsoft, Nvidia, and The Trade Desk. The Motley Fool has a disclosure policy.
3 Cheap Stocks That Can Set You Up for Life was originally published by The Motley Fool
