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Top 3 Funds Under 25% to Buy Before 2026 Tech Breakthrough | The Motley Fool

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The technology boom has moved on to the year 2026. Many stocks are all-time highs, and few have fallen more than 25%. I think there are good deals to be had, and investors shouldn’t waste this investment opportunity that comes around every few years.

Three stocks I’m looking at as strong candidates Microsoft (MSFT +1.01%), Broadcom (AVGO +0.29%)and Meta Platforms (META 0.82%). All three stocks are down 25% or more, and each makes for an amazing buy right now.

Image source: Getty Images.

1. Microsoft

It’s hard to imagine that Microsoft is down more than 30% from its all-time high, but that’s where we find ourselves. Over the past decade, Microsoft has fallen more than 30% from its all-time high — the end of 2022.

If you go back four years, you can remember that the market thought that we were headed for a recession and that the economy would collapse. While that action didn’t materialize, it didn’t stop the stock from selling off. For Microsoft to be so far away seemed to make sense at the time.

For Microsoft to sell off its highs without a major event like a potential recession is unthinkable.

Microsoft Stock Quote

Modern Change

(1.01%) $3.73

Current Price

$373.10

Microsoft is a leader in the artificial intelligence (AI) race, and its platform is becoming the place to build and run AI applications. Microsoft is in a good position to move its company into the next generation of technology, and I think the recent sale is a great buying opportunity.

2. Meta Platforms

Another reason for Meta’s sale to Microsoft has to do with spending plans. Meta expects to spend $115 billion to $135 billion this year. It’s essentially a cash flow, and it shows how big Meta believes AI will be for its future. The market isn’t buying this, which is why the stock is down more than 25% from its all-time high.

Meta Platforms Stock Quote

Modern Change

(-0.82%) $-4.77

Current Price

$574.46

However, if you only look at the trading performance, you may think that the Meta strategy is working flawlessly. In the fourth quarter, Meta’s revenue rose 24% year-over-year, reflecting its top-tier advertising platform through its social media platforms. Meta continues to work on new AI products and how to integrate that technology into its existing business. This is something to celebrate, but because Meta is throwing all its money into AI computing capabilities, the market remains skeptical.

With Meta stock trading at just 19 times earnings, it looks like a good buy right now.

3. Broadcom

The last one is Broadcom, and considering the hype surrounding mainstream AI chips, I’m surprised it sold so much. Broadcom’s business of custom AI chips challenges transparency Nvidia‘s rule in this area.

Broadcom is partnering directly with an AI hyperscaler to create a chip designed for their AI tasks. This can lead to better performance at lower cost but at the cost of flexibility. This seems to be the business that the AI ​​hyperscaler is willing to do, because Broadcom’s chip business is booming.

Broadcom Stock Image

Modern Change

(0.29%) $0.90

Current Price

$314.39

In Q1 of fiscal year 2026 (ending Feb. 1), its AI semiconductor division had $8.4 billion in sales. Custom AI chips are part of that division but not all of it. That’s a running annual rate of about $34 billion.

However, Broadcom CEO Hock Tan believes that conventional AI chips will generate $100 billion in revenue by the end of 2027. It’s an impressive growth in just one year and makes Broadcom look like a smart investment, even with a high price tag. However, the stock is down 25% from all time, which makes it not cheap right now.

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