The technology sector has taken a beating in 2026. Many stocks are a long way from their all-time highs and a few are down more than 25%. I believe there are great deals available and investors should not waste this investment opportunity that arises only every few years.
The three stocks I have in my sights as strong candidates for recovery are microsoft (NASDAQ:MSFT), Broadcom (NASDAQ:AVGO)and Metaplatforms (NASDAQ: META). All three stocks are down 25% or more and each of them is an incredible buy right now.
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It’s hard to imagine that Microsoft has fallen more than 30% from its all-time high, but that’s where we are. Over the past decade, Microsoft has fallen more than 30% from its all-time high only once: in late 2022.
If we turn back the clock four years, we’ll remember that the market assumed we were heading straight into a recession and that the economy was going to collapse. While that drop never came to light, it didn’t stop the stock from selling off heavily. That Microsoft was so far from its all-time high seemed reasonable at the time.
That Microsoft lowers its highs so much without a major event such as an economic crisis looming does not make sense.
Microsoft is a leader in the artificial intelligence (AI) race and its platform is becoming the go-to place to build and run AI applications. Microsoft is well positioned to take its company into the next generation of technology and I believe the recent sell-off is a huge buying opportunity.
Part of the reason for the liquidation of Meta and Microsoft has to do with capital investment plans. Meta expects to spend between $115 billion and $135 billion this year. That’s basically all of its cash flows, and shows how big Meta thinks AI will be for its future. The market isn’t buying this, which is why the stock is down more than 25% from its all-time high.
However, if we look solely at the execution of the business, we will probably assume that Goal’s plan is working perfectly. In the fourth quarter, Meta’s revenue increased 24% year over year, showcasing its best-in-class advertising platform across its social media sites. Meta is continually working on new AI products and how you can integrate that technology into your existing business. This is something that should be celebrated, but since Meta is investing all its money in AI computing capabilities, the market is becoming a bit skeptical.