Most tech stocks have taken a hit since late January, with Microsoft leading the charge down by 27%. However, this slump may be a buying opportunity for experienced investors. Among these, Broadcom and Oracle are two megacap stocks that show promise despite their recent downturns.
Broadcom is a key player in AI-related hardware, providing networking equipment and software to connect computer processors into neural networks. The company’s sales grew 24% year-over-year, driven largely by AI-related hardware, and analysts predict even stronger growth ahead. With a projected 28% top-line growth for the current quarter, Broadcom remains an attractive investment opportunity.
Oracle, another cloud-based tech giant, has also been hit hard by concerns over its AI business. However, recent upgrades from analysts at J.P. Morgan and Oppenheimer suggest that the company’s strong revenue backlog and solid growth prospects make it a buy-worthy stock. With an expected $105 billion in revenue this fiscal year, Oracle is poised for long-term success.
Microsoft, often criticized for its sluggish AI growth, has seen its stock slide by 27% since October. However, this sell-off may be unfounded. The company’s backlog of business more than doubled year-over-year, with a projected $16% revenue growth for the current fiscal year. Experienced investors should not be deterred by the short-term volatility and instead look at Microsoft as a solid long-term investment opportunity.
These two stocks, along with Nvidia, offer a glimpse into the rapidly evolving tech landscape and the opportunities that come with it. As AI continues to grow in importance, these companies are well-positioned to benefit from the trend.
Source: https://www.fool.com/investing/2026/03/20/top-megacap-stocks-buy-after-microsoft-pullback