When you're on an airplane, the pilot or a flight attendant will typically announce over the loudspeaker to "buckle your seatbelt" when the air is turbulent. That could be good advice for investors right now, too.The Nasdaq Composite Index (^IXIC -4.00%) is now squarely in correction territory. But stock market corrections have one key redeeming quality: They provide excellent opportunities to buy great stocks at a discount. Here are my picks for the two smartest stocks to buy during the current Nasdaq corr ...

Core Viewpoint - The Nasdaq Composite index, heavily influenced by technology companies, has seen significant volatility, presenting potential investment opportunities in AI-focused ETFs as individual stock picking may be riskier [1][2]. Group 1: Market Performance - The Nasdaq Composite index gained 28.6% last year but has recently fallen 13.4% from its record high, entering correction territory [2]. - The iShares Future AI and Tech ETF is down 20.6% from its recent high, with shares available for under $40 [3]. Group 2: ETF Overview - The iShares Future AI and Tech ETF, reconstructed in August 2022, focuses exclusively on AI companies, holding only 50 stocks, which leads to potential volatility [4]. - The ETF's top 10 holdings include major AI players such as Broadcom, Nvidia, and Palantir Technologies, with Broadcom's AI revenue increasing 77% year over year to $4.1 billion [5][6][8]. Group 3: Industry Insights - The AI industry is still developing, with Nvidia's CEO predicting next-generation AI models will require 100 times more computing power, indicating a long-term growth trajectory for AI infrastructure [11]. - Major tech companies like Meta Platforms, Alphabet, Microsoft, and Amazon are projected to spend over $300 billion on hardware in 2025, benefiting companies within the iShares ETF [12][13]. Group 4: Investment Strategy - The iShares ETF has delivered a return of 6.1% since its reconstruction, outperforming the S&P 500's 5.1% gain over the same period, suggesting it could be a valuable addition to a diversified portfolio [10]. - Investing in the iShares ETF allows exposure to a range of high-quality AI stocks, potentially leading to significant long-term returns while mitigating risks associated with individual stock performance [14].

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Group 1: Market Overview - In 2024, technology stocks involved in artificial intelligence (AI) led the Nasdaq-100 index higher, while healthcare stocks struggled due to concerns about Robert F. Kennedy's nomination for Health and Human Services Secretary [1] - In 2025, the technology sector has disappointed investors, while healthcare stocks have led the U.S. market higher, with Gilead Sciences being the best performing member of the Nasdaq-100 index as of March 9, achieving a year-to-date return of 27% [1] Group 2: Company Performance - AppLovin reported a 44% increase in revenue to $1.3 billion in Q4, with non-GAAP net income more than tripling, but the stock has fallen 47% from its high this year due to negative reports from short sellers [3] - Palantir consistently beat Wall Street's expectations with its financial results last year, but the stock has fallen 32% from its high this year due to concerns about insider selling and possible Pentagon budget cuts [4] - Nvidia, the market leader in data center GPUs, has seen its stock fall 25% from its high this year due to concerns about the sustainability of AI infrastructure spending and export restrictions [5] Group 3: Analyst Sentiment - Despite recent declines, Wall Street remains predominantly bullish on AppLovin, Palantir, and Nvidia, with median target prices implying substantial upside for shareholders [6] - AppLovin's median target price of $555 per share implies 132% upside from its current share price of $239, Palantir's median target price of $97 per share implies 22% upside from its current share price of $79, and Nvidia's median target price of $175 per share implies 65% upside from its current share price of $106 [10] Group 4: Gilead Sciences - Gilead Sciences is a pharmaceutical company with a strong presence in the HIV and oncology markets, known for developing the first once-daily tablet for HIV treatment and receiving approval for a pre-exposure prophylaxis (PrEP) HIV medication [7] - Gilead reported Q4 financial results that beat Wall Street expectations, with revenue increasing 6% to $7.6 billion and non-GAAP net income increasing 10% to $1.90 per diluted share [8] - Gilead anticipates regulatory approval of twice-yearly lenacapavir injections for HIV pre-exposure prophylaxis in the U.S. and updates from two phase-3 clinical trials involving Trodelvy, which has been designated as a breakthrough therapy by the FDA [9][12] - Gilead shares trade at a reasonable price, with Wall Street expecting adjusted earnings to increase at 32% annually over the next two years, making the current price-to-earnings (PE) multiple of 25 look fair [13]

Investors haven't had many chances to consider buying shares of the artificial intelligence (AI) leader Nvidia (NVDA -5.07%) on a big dip over the last several years. But now is one of those times. In fact the recent pullback in Nvidia shares is the largest drop from a recent high in the last two years. Shares are down 20% year to date, and 28% off a January high.There are many reasons stocks drop. Company-specific news, investors rotating away from one sector toward others, and general risk angst are a few ...

Core Viewpoint - The Nasdaq stock market has entered correction territory, with the Nasdaq Composite down approximately 14% from its recent high, presenting potential buying opportunities for long-term investors [1] Company Overview: SoFi Technologies - SoFi Technologies has experienced significant stock price volatility, losing over a third of its value in the past six weeks, despite entering 2025 with strong business momentum [2][3] - In 2024, SoFi achieved a 26% revenue growth, reaching an all-time high, and recorded its first full year of profitability with the highest adjusted EBITDA, adjusted EPS, and net income in its history [4] - The company ended 2024 with 10.1 million members, a 34% increase year-over-year, and reached $25 billion in deposits, a notable achievement given its lack of a banking charter until 2022 [5] Business Growth and Opportunities - SoFi is expanding its loan platform business, which generates low-risk, capital-light fee income by originating loans for third-party lenders [6] - The company launched two new credit cards in Q4, targeting its affluent membership base, with potential for further premium or travel credit card offerings [7] - SoFi anticipates approximately 25% revenue growth and 73% diluted EPS growth in 2025, supported by a strong track record of exceeding guidance [8] Recent Developments - Following the release of its fourth-quarter and 2024 year-end results, SoFi's stock has declined by about 33%, despite no fundamental changes in the business, with recent news being positive [9] - Recent announcements include enhancements to SoFi Plus premium membership, co-branded debit rewards cards through Galileo, and a nearly $700 million securitization of personal loans [10] Market Context - While the overall market is experiencing a downturn, the stock of SoFi is becoming increasingly attractive from a risk-reward perspective, potentially offering a bargain if the company maintains its growth momentum [11]

Core Viewpoint - Investors are currently selling assets due to market corrections, leading to a search for safe haven investments, with Kraft Heinz being highlighted as a potential option despite its underlying business challenges [1][2][4]. Group 1: Market Context - The Nasdaq Composite has experienced a decline of approximately 10%, indicating a market correction, which often triggers a risk-off mentality among investors [4]. - In response to market declines, investors typically sell off high-flying stocks and seek safer investments, particularly in the consumer staples sector [2][3]. Group 2: Kraft Heinz Analysis - Kraft Heinz is positioned as a consumer staples giant with a dividend yield of around 5%, significantly higher than the sector average of approximately 2.6% [5]. - Despite its attractive dividend yield, Kraft Heinz has been facing ongoing business challenges, with organic sales for its key brands declining by 5.2% in Q4 2024, following previous declines in earlier quarters [7]. - The company has undergone a management shake-up and is attempting to refocus on its most important brands, similar to strategies employed by Procter & Gamble [6]. Group 3: Investment Recommendations - Given the current performance issues of Kraft Heinz, it may not be the best choice for investors seeking safety in the consumer staples sector; alternatives like the Consumer Staples Select Sector SPDR ETF or strong performers like Coca-Cola or PepsiCo are suggested [9].

Core Viewpoint - The recent correction in the Nasdaq Composite presents a buying opportunity for quality stocks, specifically Alphabet and Microsoft, which are now more attractively priced than earlier in the year [1]. Group 1: Alphabet - Alphabet's shares are down approximately 20% from their all-time highs in early February, resulting in a forward price-to-earnings (P/E) ratio of 18.5, indicating an attractive valuation [2]. - The company is a leader in digital advertising, with Google being the largest platform globally and YouTube ranking fourth [3]. - Alphabet is heavily investing in artificial intelligence (AI) to enhance search results and create new ad formats, which could significantly increase monetization opportunities [4]. - The Gemini 2.0 model is improving Alphabet's capabilities in multimodal search, and its Veo 2 text-to-image video generator is outperforming competitors [5]. - Google Cloud, Alphabet's cloud computing division, reported a 30% revenue growth and a 142% increase in segment income last quarter, indicating a profitability inflection point [6]. - Alphabet is also advancing in quantum computing and autonomous driving, with its Waymo unit being the only provider of paid robotaxi rides in the U.S. [7]. Group 2: Microsoft - Microsoft, known for its Office 365 productivity tools, also owns the second-largest cloud computing business and operates various platforms including LinkedIn and GitHub [8]. - The company has successfully transitioned to a subscription model for its software, driving growth and embracing AI through significant investments in OpenAI [9]. - Azure, Microsoft's cloud computing unit, experienced a 31% revenue growth last quarter, with Azure AI revenue soaring 157% year over year [10]. - Microsoft 365 AI copilots are a significant growth opportunity, offering AI assistance to users for various tasks, which could lead to high adoption rates if proven effective [11][12]. - Following the market pullback, Microsoft's stock trades at a forward P/E of 25 based on fiscal year 2026 estimates, presenting a reasonable valuation for a leading tech company [13].

Core Viewpoint - The current market downturn presents opportunities for investors to acquire quality stocks at discounted prices, particularly in the tech sector, with Nvidia being a prime example of a company poised for significant growth despite recent volatility [1][2]. Company Overview: Nvidia - Nvidia has emerged as a leader in the AI revolution, with its stock experiencing a remarkable increase of up to 965% over the past two years, although it has recently declined by 28% from its peak [3][4]. - The company has a current market capitalization of approximately $2.62 trillion, with projections suggesting it could become the world's first $20 trillion company, requiring a stock price increase of 664% [9]. - Nvidia is expected to generate nearly $204 billion in revenue by fiscal 2026, leading to a forward price-to-sales (P/S) ratio of about 13 [9]. Growth Potential - Wall Street analysts forecast Nvidia's revenue growth at 50% annually over the next five years, which could enable the company to reach a $20 trillion market cap by 2031, although this scenario requires favorable market conditions [10]. - Key factors driving Nvidia's potential growth include the low current adoption rate of AI, projected business spending on Web 3 technologies, and government efficiency initiatives [12][17]. Market Position and Technology - Nvidia's GPUs have set the standard in high-performance computing, data centers, cloud computing, and AI processing, with its CUDA programming platform enhancing developer engagement and application performance [6][7][8]. - The company has established itself as the industry standard, with over 400 libraries available to developers, solidifying its position in the computing landscape [7]. Investment Considerations - The current decline in the Nasdaq index offers a compelling buying opportunity for Nvidia, with the stock trading at less than 24 times forward earnings, making it an attractive investment for those looking for long-term growth [16]. - Despite the potential for significant returns, Nvidia's stock is characterized by volatility, necessitating a strong risk tolerance from investors [15].

Core Viewpoint - The Nasdaq Composite index is currently in correction territory, down 13% from its recent high, creating potential buying opportunities for long-term investors in quality companies [1]. Group 1: Advanced Micro Devices (AMD) - AMD operates in the data center GPU space, competing primarily with Nvidia, but also has significant business in desktop and laptop processors, gaming chips, and embedded applications [3][4]. - AMD's data center revenue nearly doubled year-over-year in 2024, with adjusted EPS growth of 25% and an expected 30% revenue growth in Q1 2025 [5]. - The data center industry is projected to grow by 140% by 2030, and AMD's stock is trading at about 21 times forward earnings, indicating a potential investment opportunity [6]. Group 2: PayPal - PayPal's stock has dropped significantly following a disappointing earnings report, now trading at less than 14 times expected 2025 EPS, presenting a long-term investment opportunity [7]. - The company has undergone leadership changes focused on efficiency, with recent EPS growth reflecting these improvements, and new initiatives like an advertising platform launched in mid-October [8][9]. - PayPal generates approximately $6 billion in annual free cash flow, primarily used for share buybacks, indicating strong cash generation capabilities [10].