The recent stock market sell-off has left many investors searching for bargains. Three growth stocks that look particularly cheap right now are Alphabet, Adobe, and Taiwan Semiconductor. Alphabet, the parent company of Google, is trading at just 17.5 times forward earnings.
This is one of the lowest valuations for the company in the past decade. Investors are worried about Alphabet’s heavy dependence on advertising revenue and the potential impact of tariffs and recent court rulings against the company. However, Alphabet remains a dominant player in the advertising space.
Any potential breakup of the company could actually create extra value for shareholders. Adobe used to be one of the most premium-valued big tech companies. But that is no longer the case.
Investors are concerned that various generative AI platforms will eat into Adobe’s market share. However, Adobe has responded with its own generative AI models.
High-quality stocks at bargain prices
The company’s growth has also remained fairly steady at around 10%. While Adobe has lost its premium valuation, the stock is now transitioning from a growth to a value investment. This makes it an attractive buy during this period.
Taiwan Semiconductor, or TSMC, is a chip fabricator for many leading tech companies. Investors are worried about the impact of tariffs on its business. However, the company is proactively investing $100 billion to expand its manufacturing footprint in the U.S. This expansion will help TSMC maintain its strategic positioning amidst trade tensions.
Even at 17 times forward earnings, TSMC’s stock is still a bargain for one of the world’s most critical companies. The long-term growth trajectory for Taiwan Semiconductor remains strong. The current stock market conditions present a rare opportunity to buy into high-quality companies at discounted prices.
Alphabet, Adobe, and Taiwan Semiconductor all have strong fundamentals and promising futures. This makes them attractive options for investors looking to take advantage of the recent market sell-off. As with any investment, it’s important to do your own research and consider your individual financial goals and risk tolerance before making any decisions.
