The tech sector has taken a beating in 2026. Many stocks are well off their all-time highs, and a handful are down more than 25%. I think there are some great deals available, and investors shouldn’t squander this investment opportunity that comes about only every few years.
The three stocks I’ve got my eye on as strong rebound candidates are Microsoft (NASDAQ: MSFT), Broadcom (NASDAQ: AVGO), and Meta Platforms (NASDAQ: META). All three stocks are down 25% or more, and each makes for an incredible buy right now.
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It’s difficult to imagine Microsoft being down more than 30% from its all-time high, but that’s where we find ourselves. Over the past decade, Microsoft has fallen more than 30% from its all-time high just once — in late 2022.
If you rewind the clock four years, you may recall that the market assumed that we were headed straight into a recession and that the economy was going to tank. While that drawdown never surfaced, it didn’t stop stocks from heavily selling off. For Microsoft to be that far off its all-time high seemed reasonable at the time.
For Microsoft to trade this much off of its highs without a huge event like an economic crash potentially looming makes no 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 move its company into the next generation of tech, and I think the recent sell-off is a massive buying opportunity.
Part of the reason for Meta’s and Microsoft’s sell-off has to do with capital expenditure plans. Meta expects to spend $115 billion to $135 billion this year. That’s basically all of its cash flows, and it shows how big Meta believes 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 you solely look at the business execution, you’d probably assume that Meta’s plan is working flawlessly. In the fourth quarter, Meta’s revenue rose 24% year over year, showcasing its best-in-class advertising platform via its social media sites. Meta is continuously working on new AI products and how it can integrate that technology into its existing business. This is something that should be celebrated, but because Meta is dumping all its cash into AI computing capabilities, the market is getting a bit skeptical.