Key Points
Microsoft is trading at levels usually only seen in times of crisis.
Broadcom expects monstrous growth over the next few years.
Demand for Nebius’ computing services is off the charts.
- 10 stocks we like better than Microsoft ›
Artificial intelligence (AI) investing has hit a bit of a lull. The market is a bit worried about how much money companies are spending on AI computing, and they want to see a return on investment. However, that may not come for a few years, which creates conflict between the market and the AI leaders. The AI leaders all recognize that this area is one that you must spend big on now, or risk being left behind in the future. This is truly table stakes to sit at the big tech table, but that doesn’t give it a pass from the market.
Investors need to use this sell-off as a buying opportunity, as there are several stocks that you may have missed out on that look like incredible deals right now.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
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Microsoft
Microsoft (NASDAQ: MSFT) is probably the biggest value in the current sell-off. It posted strong financial results for the second quarter of fiscal year 2026 (ended Dec. 31, 2025), yet the stock sold off. This doesn’t make any sense, and the market is well aware of Microsoft’s spending plans and how it’s actually profiting from the AI build-out right now due to its thriving cloud computing business, Azure.
Still, Microsoft stock is down around 30% from its all-time high. What’s even more telling is its price tag. From a price-to-earnings basis, Microsoft has seldom been this cheap since 2020.
MSFT PE Ratio data by YCharts
If you’ve missed out on Microsoft’s stock in the past, now is the time to take action. I think the stock is due to rally higher any day now, and taking advantage of it while it’s down is a smart move.
Broadcom
Broadcom (NASDAQ: AVGO) is another stock that has sold off since 2026 began. It’s not down nearly as much as Microsoft (about 20% at the time of this writing), but it’s still a prime buying opportunity. Broadcom’s hottest business unit is its custom AI chip division, which partners with various AI hyperscalers to design a chip that’s specifically suited for their needs. These chips are a viable alternative to expensive graphics processing units (GPUs) in some cases, and are a huge growth opportunity for Broadcom.
Wall Street expects big things from Broadcom over the next two years, with the average analyst projecting 53% revenue growth and 39% revenue growth in fiscal years 2026 and 2027, respectively. Those growth rates indicate Broadcom’s revenue should double over the next two years, and if I can find a stock that can double revenue in the next two years at a discount, I think it’s a no-brainer buy.
Nebius
Last is Nebius (NASDAQ: NBIS). Nebius isn’t a big tech company like Broadcom or Microsoft, but it’s rapidly growing. Nebius operates an AI-first cloud computing platform that offers a full-stack setup for its users. This allows AI developers to build and run AI models on its platform, making it an incredibly popular offering right now.
If you were impressed by Broadcom’s growth rate, wait until you see Nebius’. At the end of 2025, Nebius had an annual run rate of $1.25 billion. By the end of 2026, that figure is expected to rise to $7 billion to $9 billion. That growth is possible thanks to several data centers coming online.
Nebius has delivered nearly exponential growth, rising from two sites in 2024 to seven in 2025. At the end of 2026, it expects to have 16 sites operational, which will be able to handle the massive demand it’s experiencing. This demand won’t shut off at the end of the year and will likely continue growing at a rapid pace over the next few years as AI becomes more widely used. With Nebius down around 25% from its highs set in October 2025, now is the perfect time to buy shares.
Should you buy stock in Microsoft right now?
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Keithen Drury has positions in Broadcom, Microsoft, and Nebius Group. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
