Tech Stocks to Buy Now: Bank of America’s Top 5 Picks After the Nasdaq Dip

The recent downturn in the Nasdaq Composite has led Bank of America to highlight several promising opportunities within the technology sector. Despite the index declining nearly 12% from its peak and a year‐to‐date drop of approximately 8% (a steeper decrease compared to the S&P 500’s 3.6% loss), the bank argues that the market’s broad selling pressure on key tech names may have been overdone.

Bank of America recommends a strategic buy on five well-positioned companies that are expected to benefit from trends in artificial intelligence, semiconductor innovation, and advanced software development. All of these stocks carry a buy rating from the bank’s analysts, who emphasize their potential for a strong rebound in the coming months.

Analog Devices (ADI): A Resilient Contender

Analyst Vivek Arya has singled out Analog Devices as the top pick among companies specializing in analog chips. Despite a 4.6% decline in stock price this year, the firm is viewed as well-equipped to withstand market volatility. Arya is optimistic about a recovery later next year, particularly due to the firm’s involvement in the automotive and industrial sectors. Notably, Analog Devices has demonstrated considerable strength during previous downturns, frequently outperforming the broader semiconductor index when declines have exceeded 10%.

Marvell Technology (MRVL): Capitalizing on Data Center Growth

Marvell Technology is another stock that Arya praises, citing its robust positioning in the fields of artificial intelligence and long-term growth prospects. Although the share price has experienced a notable slide of 37% in 2025, the dip is seen as an attractive entry point for patient investors. Market participants are watching for upcoming events, such as an analyst day scheduled for June, which could further boost expectations around the company’s growth trajectory.

AppLovin (APP): Undervalued in a High-Growth Software Niche

Analyst Omar Dessouky highlights AppLovin as a compelling prospect due to its pioneering role in digital spending and software innovation. Even with recent bearish reports and market fluctuations, the company’s unique position in its niche provides it with a competitive edge over tech giants. With only a marginal 5% decrease in its stock value this year, each investor meeting seems to reinforce a bullish view on the company’s future.

Broadcom (AVGO): Consistent Profitability Amid Diverse Technologies

Broadcom remains a solid option, benefiting from its diversified exposure to various technological cycles including smartphones, data storage systems, and telecommunications. The company’s strong operating margins, with EBITDA and free cash flow consistently surpassing 45%, support its reputation for delivering steady returns even in volatile market conditions. Bank of America anticipates that Broadcom will continue to lead in profitability while navigating market challenges.

Nvidia (NVDA): Commanding the AI Ecosystem

In the wake of its recent GTC event, Nvidia has received renewed support from Bank of America. The company’s seamless integration across hardware, software, and systems enhances its competitive advantage in the artificial intelligence domain. With a technology infrastructure market valued at over one trillion dollars, Nvidia is regarded as the dominant player, well-positioned to capitalize on the expanding AI ecosystem.

Overall, the bank’s recommendations underscore a conviction that current market corrections may present unique long-term buying opportunities in the technology sphere. Investors are advised to consider the inherent growth prospects in sectors such as semiconductor technology, AI, and high-growth software, which could help drive strong performance when the broader market sentiment stabilizes.