"Top 2 Tech And Telcom Stocks That May Keep You Up At Night In March"

March 2025 is shaping up to be a rollercoaster ride for investors, especially those with stakes in the tech and telecom sectors. The market volatility, driven by a mix of AI disruptions, trade wars, and economic uncertainties, has created a perfect storm that could keep even the most seasoned investors awake at night. Let's dive into the two stocks that are likely to be the biggest headache for investors this month.



nvidia Corp (NVDA)

Nvidia has been a market darling for years, but recent developments have put a dent in its otherwise stellar performance. The launch of DeepSeek's AI assistant in January 2025 sent shockwaves through the tech sector, with Nvidia's market cap shedding nearly $600 billion. The new AI model demonstrated capabilities on par with ChatGPT but at a fraction of the cost, raising concerns about Nvidia's dominance in the GPU market.

The sell-off in Nvidia's stock is a buying opportunity for those who believe in the sustained growth of AI investment. Nvidia's revenue has more than doubled in each of the past two years, and strong growth is expected to persist as demand for its chips remains robust. Following the market sell-off, the stock is cheap, trading at a forward price-to-earnings (P/E) ratio of below 27 times 2025 analyst estimates and a price/earnings-to-growth (PEG) ratio of 0.5, with PEG ratios under 1 considered undervalued.

However, the glass-half-empty outlook on Nvidia is that its gross margins are falling, and its growth rate is unsustainable if major customers like Amazon, Microsoft, Apple, and Meta Platforms pull back on spending, or if there's a cyclical downturn in the semiconductor industry. At times like this, it's best to zoom out and focus on the big picture. If you believe in the sustained growth in AI investment and the need for more computing power, Nvidia stock looks like a great price at current levels. And even if you're skeptical, Nvidia's growth rate could be cut in half, and it would still be growing far faster than other megacap tech stocks.

Micron Technologies (MU)

Micron Technologies is another tech stock that could keep investors up at night. The memory chip maker faces a tremendous era of business growth as the AI boom plays out in the long run. However, the stock has underperformed the S&P 500 over the last year and since the ChatGPT release. This proven performer and future AI mogul is trading at just 8.4 times forward earnings estimates, which is a steal in my book.

The future AI systems will require a ton of processing power and boatloads of memory chips. As a leading provider of these chips, especially the high-bandwidth memory you see in high-end AI accelerators, Micron should enjoy game-changing growth in the coming years. But nobody told Mr. Market. The stock has underperformed the S&P 500 over the last year and since the ChatGPT release. This proven performer and future AI mogul is trading at just 8.4 times forward earnings estimates, which is a steal in my book.

Conclusion

In conclusion, while the current market volatility and political uncertainties can impact the performance of tech and telecom stocks, long-term trends such as the increasing demand for AI, 5G, and digital connectivity present significant growth opportunities for investors. However, investors need to be cautious and adopt a long-term investment horizon, focusing on companies with strong fundamentals that can deliver on expectations. By diversifying their portfolios and focusing on long-term growth potential, investors can mitigate potential risks and grow closer to reaching their financial goals.

Ask Aime: What impact will GPT-4 have on Nvidia and Micron Technologies?