The stock market has been selling off in the past few weeks due to consecutive bouts of tariff fears and macros reinforcing those fears by showing a slowdown. The selloff is justified considering most tech stocks were changing hands at very high premiums. Even now, many stocks are trading at triple-digit price-earnings ratios and certain quantum computing stocks went on to rally to new highs.

However, as most selloffs do, they’ve also created solid opportunities as certain tech stocks sold off more than others. Here are two to look into:

The Trade Desk (TTD)
The Trade Desk (NASDAQ:TTD) has been crushed over the past few months. It is sitting at a 60%-plus discount from December 2024. The selloff is even bigger than the one in late 2021 to mid-2022.

The Trade Desk reported $741 million in revenue for Q4 2024, and while this was up 22% year-over-year, it still missed the company’s own guidance of at least $756 million and analysts’ expectations of $758 million. This was quite unexpected for a company that has historically beaten estimates. On top of that, most companies have reported solid advertising metrics, and Q4 is usually when advertisers do well due to the holiday season.

The market hates uncertainty, and The Trade Desk’s Q1 2025 guidance of at least $575 million (17% growth) is underwhelming compared to prior quarters (e.g., 28% in Q1 2024). This slower growth, alongside organizational recalibration and a “show me” story, may justify some investor caution. But I still think a 60% selloff is an overreaction compared to a modest miss.

It’s a great buying opportunity since TTD stock now has little downside risk and triple-digit upside potential if its management can return to trouncing estimates in the coming quarters. The company’s market penetration remains small and there’s plenty of growth opportunity. The current price could be a steal if you believe the miss was a one-off and trust the leadership to course-correct.

The consensus price target of $116.4 implies 110.4% upside potential.

Micron (MU)
Micron (NASDAQ:MU) makes memory and storage products and has been a key beneficiary of the data center boom over the past few years. The hype surrounding AI and cloud computing has diminished, and MU stock is down 28% from its June 2024 peak, but there’s a solid upside here since it trades at very cheap levels.

Micron has solid growth figures. It posted 84.3% revenue growth in Q1 FY2025, and margins recovered significantly from 2022 levels. For the full year, analysts see 39% revenue growth to almost $35 billion, along with EPS at $6.8. This means you’re paying just 15 times forward earnings at these levels.

Of course, Micron does operate in a cyclical industry, but it’s hard to see it go too much lower from current levels. AI is also likely to alleviate a cyclical downturn. Data center revenue grew 400% year-over-year in the latest quarter and now accounts for 50% of revenue. Micron’s data center revenue includes high-bandwidth memory (HBM) products, which are crucial for AI.

Plus, while Micron does face competition, most of it is foreign (Samsung and SK Hynix). Tariffs could help it on that front.

Micron is expected to report earnings soon, and this could make or break the stock for the next couple of months. Analysts are forecasting $1.43 per share (non-GAAP), up 240% from a loss of $1.01 in the same quarter last year. Revenue is also expected to increase 36% year-over-year to $7.9 billion from $5.8 billion.

Analysts have a consensus price target of $134.16 on the stock, which implies 31.45% upside.

— Omor Ibne Ehsan

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Source: Money Morning