With the tech sector taking “additional” damage as the broader markets turn to August, growth-hungry bargain hunters should consider the following beaten-down high-tech names – Uber, AVGO and SAP – while they are significantly cheaper than they were two weeks ago. Undoubtedly, the summer sell-off in the markets seems to have come about a month early (typically September is the worst month for stocks).

Therefore, the following tech stocks rated Strong Buy may be worth your attention. Let’s use TipRanks’ comparison tool to compare the names as the market turmoil drags on.

Last week’s weak jobs data was pretty terrible and put pressure on markets. But perhaps when recession fears return, there is nothing more to worry about than fear itself. Sure, consumer sentiment, preferences and habits have changed in sudden and mysterious ways in response to inflation and other stresses over the past few years.

However, Uber’s latest quarter seems to indicate that consumers are doing well, and given Uber’s incredibly strong results and return to profitability, I can’t help but remain bullish on the stock.

Uber’s last quarter surprised many. After all, a sluggish economy should mean fewer people are willing to spend money on ride-hailing services, right? In a previous article, I found that ride-hailing companies are actually more economically resilient than many gave them credit for.

After all this inflation, have Uber Eats and rides gotten more expensive recently? Absolutely. However, it’s still cheaper to ride with Uber than to own a car. Given all the insurance, parking, gas, maintenance, and other hidden costs, it should be no secret why Uber stock is doing so well even when the economy seems to be on its last legs.

With rides and food deliveries up 23% and 8% respectively and results back to positive, Uber stock looks like a buy on the way up. Whether the consumer experiences relief or more pain, Uber stands out as a service that consumers still value highly in this difficult environment.

What is the price target for UBER shares?

According to analysts, UBER stock is a strong buy. Over the past three months, 31 buy recommendations and one hold recommendation have been issued. The average price target for UBER stock is $87.93, implying an upside potential of 27.4%.

View more UBER analyst ratings

Broadcom was in the middle of the blast zone amid the recent market-wide sell-off and the likely soon-to-be correction. The biggest winners in semiconductors are giving back a lot of the gains of the past few months. Where some see an AI bubble, I see nothing more than a correction. In fact, it’s a healthy one when it comes to AVGO, which saw a steep rise in June. Even after the 22% plunge, AVGO stock is still up about 10% since the beginning of June. There’s nothing inherently wrong with the Broadcom story or the stock, so I remain bullish.

In early August, Rosenblatt analyst Hans Mosesmann raised his price target on the name by a whopping 45% (from $1,650 to $2,400), praising the company for its AI infrastructure and networking businesses. With a forecast through fiscal 2026, Mr. Mosesmann believes high double-digit growth is expected. I think he is absolutely right to tout the name. However, the upgrade came just before AVGO stock plunged into a nasty bear market.

So what has changed since the notable upgrade? Not much, aside from the price of entry and investors’ newfound aversion to AI stocks. Once investors fall in love with AI stocks again, I think a recovery for AVGO won’t be far behind. With a P/E ratio of 22.6, the stock is in line with the semiconductor industry average of 22.3, making it fairly valued.

What is the price target for AVGO shares?

According to analysts, AVGO stock is a strong buy, with 23 buy recommendations and one hold recommendation issued over the past three months. The average price target for AVGO stock is $196.36, implying an upside potential of 34.7%.

View more AVGO analyst ratings

Shares of German enterprise software company SAP were one of the most resilient technology companies amid the brutal correction in the tech-heavy Nasdaq 100 (NDX). At the time of writing, the stock is just 5% below its all-time high, while the S&P 500 (SPX) is just one bad day away from falling into a correction of its own. As a recently discovered AI winner that seems to be striking a good balance between saving and investing, I view SAP as one of the AI ​​stocks that can dodge and weather the blows of the tech sector, so I remain bullish on this name.

Following the release of its latest figures, SAP announced mass layoffs as part of its restructuring plans. With 9,000 to 10,000 jobs to be cut, investors have every reason to be concerned. After all, the recent layoff at Intel (INTC) was accompanied by a historic share price drop. While layoffs are always unfortunate and disappointing, investors seem somewhat enthusiastic that such cuts will cost €3 billion ($3.26 billion) but will boost estimated 2025 earnings from €10 billion to €10.2 billion.

And unlike Intel, SAP seems to be doing well: Its migration to the cloud is progressing and it is betting on AI (think of the AI ​​copilot for enterprises called Joule), which could pay off in the long term.

Berenberg’s Nay Soe Naing believes SAP “will be among the most resilient software companies in the second half of the year,” and he’s likely right. SAP stock has already proven to be resilient in the first month of the year. And because the company takes a cost-conscious approach while continuing to drive innovation in AI, it offers investors exactly what they want: targeted AI investments that won’t break the balance sheet.

What is the price target for SAP shares?

According to analysts, SAP stock is a strong buy. In the last three months, a buy recommendation has been given five times and a hold recommendation once. The average price target for SAP stock of USD 236.06 means an upside potential of 14.4%.

View more SAP analyst ratings

Diploma

Don’t let the correction in the tech sector scare you away from high-quality growth stocks that have what it takes to keep rising. Whether it’s Uber and its return to growth and profits in a difficult environment, Broadcom and its still strong tailwind from AI, or SAP and its resilience in the software space, the following trio seem more than worth their buy recommendations.

Of the three, analysts see the most room to the upside in AVGO stock, with a whopping 34.7% implied upside from current levels. I tend to agree that AVGO is the best bet while AI stocks are out of favor.

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