"Nasdaq Sell-Off: 3 Stocks to Buy That Billionaire Money Managers Also Love"

The Nasdaq Composite has been on a rollercoaster ride in 2025, with volatility returning to the stock market. As of March 18, 2025, the index has dropped about 3.8% year to date and about 7.5% off its all-time high, approaching a technical correction—a drawdown of 10% from recent highs. This volatility has left many investors wondering where to find bargains in the Nasdaq. Today, we'll look at three stocks that billionaire money managers are eyeing: advanced micro devices (AMD), broadcom (AVGO), and amazon (AMZN).



Advanced Micro Devices (AMD)

Advanced Micro Devices has had a tough year, with its stock price dropping 55% since its peak one year ago. The slump in its gaming and embedded segments, along with a company forecast of a sequential decline in revenue, has weighed heavily on the stock. However, there are reasons to believe that the drop may be overdone.

AMD's data center segment often suffers from seasonal sales patterns, and a quarter-over-quarter decline in Q1 of last year confirms this trend. Additionally, DeepSeek's breakthrough in running AI models at much lower costs could benefit AMD's lower-end AI accelerators. AMD's overall growth rate has increased in recent quarters, with revenue in the fourth quarter of 2024 growing 24% to $7.7 billion, up from 9% in Q2. This growth is attributed to the slump in its embedded segment finally ending, as yearly revenue growth fell by 41% yearly in Q2 but was just 13% annually in Q4.

Despite the 59% decline in gaming revenue, AMD's valuation metrics make it a compelling buy. Although the P/E ratio of 102 may appear high, its forward P/E ratio now stands at just 22. That is an earnings multiple more reminiscent of a mature, low-growth stock than a cutting-edge chip company. Ultimately, business conditions are becoming more favorable for amd, not less. With revenue growth accelerating and the stock pricing sinking despite a low valuation, the 55% discount in AMD stock may not last long.

Broadcom (AVGO)

Widespread sell-offs like the one we've recently seen can be fantastic buying opportunities for long-term investors, even if it rarely feels like it at the moment. Broadcom's stock has recently declined by 27%, opening the door to accumulating shares in a company poised to thrive as artificial intelligence grows and evolves.

Broadcom is well-positioned for the opportunity in inference chips, which will help apply AI models to real-world applications. The company has product roadmaps with several AI hyperscalers and estimates that its AI-related revenue opportunity will be $60 billion to $90 billion by 2027, up from $12.2 billion in 2024. Broadcom's diverse business, with roots in communications and heavy software exposure (42% of 2024 revenue), helps mitigate the cyclical nature of the semiconductor space. Analysts estimate Broadcom will grow earnings by an average of 18% annually for the next three to five years. Broadcom's recent decline has dropped its PEG ratio to 1.7, making it an attractive buy in a shaky market.

Amazon (AMZN)

Amazon's stock has declined by 2.6% recently, but it remains a quality stock with long-term growth prospects. The Nasdaq Composite has fallen 12% in just three weeks, entering correction territory. In volatile markets, it's important to look for quality stocks and plan to hold them for even longer than normal. Amazon's strong e-commerce platform, cloud computing services through Amazon Web Services (AWS), and expanding into new markets and product categories continue to drive growth. AWS, in particular, has seen significant revenue growth and is a key driver of Amazon's overall performance.



Conclusion

In summary, the recent performance and growth prospects of AMD, avgo, and AMZN align with the investment philosophies of billionaire money managers by focusing on companies with strong growth potential, compelling valuation metrics, and specific growth drivers such as AI, cloud computing, and e-commerce. These stocks are undervalued compared to their growth prospects and broader market trends, making them attractive investments despite the current market volatility.

Ask Aime: Where to find bargains in the Nasdaq after the recent drop and sell-offs?