Technology Stocks Under Pressure: Exciting Buying Opportunities Despite Setbacks

The recent price developments in the technology sector suggest that investors are taking a more cautious stance on the economy as the hype around Artificial Intelligence (AI) has waned. Even highly valued companies like Nvidia have suffered, with their stock losing nearly 20% in the last six months. However, amidst this sell-off, opportunities may also arise. It is worthwhile to look at three other tech stocks that investors should consider buying in this turbulent market environment. Taiwan Semiconductor Manufacturing (TSMC) is the world's leading contract manufacturer for semiconductors. Many semiconductor firms do not produce their chips themselves but outsource this process to specialized companies. TSMC leads the industry in technological innovations and plans to introduce 2-nanometer production technology next year, which will improve the performance and energy efficiency of the chips. Additionally, the company will increase prices for advanced technologies due to high demand for its services. In parallel, ASML produces the highly specialized equipment needed by companies like TSMC for chip manufacturing. ASML's business can be irregular because the machines are very expensive and have a lifecycle of about seven years. For ASML, 2024 stands as a transition year, as the cutting-edge High Numerical Aperture Extreme Ultraviolet Lithography (High NA EUV) technology will be introduced. These machines, which have already been delivered to two customers, cost $380 million each and are expected to increase chip productivity and reduce production costs. Arm Holdings dominates the market for central processing units (CPUs) and is present in virtually all smartphones worldwide. The company now aims for a greater presence in the PC market, particularly in the area of Windows-based devices. Arm has also made strides in the automotive sector, achieving a 28% year-over-year revenue growth in the second quarter. Additionally, Arm benefits from developments in the AI sector and is working with Nvidia on a "superchip" that combines an Arm-based CPU with a Nvidia graphics unit. These three stocks offer potential that investors should consider in the current market environment.