Bank of America says investors should buy the dip in a slew of tech stocks. The tech-heavy Nasdaq Composite has fallen into correction territory, down 12% from its all-time high from December. Year-to-date, the benchmark has dropped about 8%, worse than the S & P 500’s 3.6% loss. But the firm is saying for some key stocks in the sector, the selling has gone too far. They include buy-rated stocks such as: Analog Devices, Nvidia, Broadcom , Marvell and AppLovin. Analog Devices Investors should take advantage of the sell-off in the semis manufacturer, the firm said earlier this week. Analyst Vivek Arya says the stock is best positioned for growth after a series of meetings with management. “ADI remains optimistic on the expected 2H25 automotive and industrial market recovery, saying they have hit the bottom, but remain uncertain on the shape of growth coming out of it,” he wrote, Still, the firm says the stock remains a best idea and the “trendline suggests [more] upside.” Further, Arya says Analog has only a very minimal impact to the tariff uncertainty. “We reiterate Buy and top analog pick and note ADI’s defensiveness…,” he went on to say. Analog Devices shares are down 4.6% this year. Marvell Technology Arya also sees a slew of positive catalysts for Marvell. The firm hosted CEO Matt Murphy for a series of meetings and came away with a “reassuring tone in [the] near & longer-term growth outlook.” Marvell’s data center opportunity also remains large, according to Arya. “We expect the overall data center TAM [total addressable market] to be raised towards ~$100bn with continued targeting of 20% share over time,” he added. In addition, Marvell has a much anticipated analyst day in June where it could raise its growth forecast, the firm says. Meanwhile, shares of the company are down 37% this year and remain attractive, Arya wrote. AppLovin The mobile app publishing tech company is just too attractive to ignore right now, according to the firm. Analyst Omar Dessouky also recently participated in a series of meetings with AppLovin concluding that the bullish thesis is becoming clearer. Dessouky says AppLovin has a first mover advantage and is well positioned to benefit from an increase in digital spending. The company was the subject of several recent short seller reports, but Dessouky says he believes its hardly shaken investors. “The market’s recent momentum unwind, and multiple short seller reports have in our view resulted in an opportunity to acquire a secular grower, early in its inflection, at a steep discount to GOOGL & META, profitable high growth software stocks, and AI beneficiaries…” he wrote. The stock is down almost 5% this year. Marvell “Confident tone in AI opportunity, capability, execution. … .Reassuring tone in near & longer-term growth outlook. … .MRVL could raise growth opportunity at next analyst day. … .We expect the overall data center TAM to be raised towards ~$100bn (20% of $500bn long-term AI opportunity) with continued targeting of 20% share over time.” Broadcom “We rate Broadcom Buy due to its high-quality diversified exposure to secular product cycles in the smartphone, cloud data center, telecom and enterprise storage markets. Additionally, with 45%+ EBITDA/FCF margins, Broadcom is among the most profitable semiconductor companies, which is likely to continue to drive strong cash returns.” AppLovin “In our opinion, management’s articulation of the secular bull thesis becomes more effective with each investor meeting – we think investors will soon connect the dots. … .The market’s recent momentum unwind & multiple short seller reports have in our view resulted in an opportunity to acquire a secular grower, early in its inflection, at a steep discount to GOOGL & META, profitable high growth software stocks, & AI beneficiaries…” Analog Devices “We reiterate Buy and top analog pick and note ADI’s defensiveness with the stock outperforming the SOX in 23 of the 29 times the index declined 10%+ since 2010. … .Shape uncertain but trendline suggests upside. ADI remain optimistic on the expected 2H25 automotive and industrial market recovery, saying they have hit the bottom, but remain uncertain on the shape of growth coming out of it.” Nvidia “We maintain Buy, $200 PO following slate of product/partner announcements at flagship GTC conference in addition to post keynote meeting with CFO that demonstrate NVDA continuing to deepen its competitive moat in a $1T+ infrastructure/services TAM. … .Overall, NVDA continues to dominate the AI value chain with its full-stack turnkey (hardware, software, systems, services, developers) model.”
