Market Correction Alert: Buy These 3 Tech Stocks in September

Investors looking to make the most of what’s left of the summer and buy some growth stocks before the next stage of the bull market begins, I have a warning for you. The market just might not be in your favor.

There are plenty of recession signals flashing red. And while a number of economists have pinned their hopes on a soft-land or no-land scenario, it’s unclear whether that will actually happen. Why, you ask? Well, because most of the time when the yield curve is so inverted for so long, it doesn’t work that way.

That being said, for those who want to take advantage of some long-term growth trends that are becoming very prevalent in today’s market, such as the rise of artificial intelligence and the applications that will support this future, there are several options to consider.

These companies are what I would consider long-term plays. Thus, for those with a long time horizon of one or two decades, I would say consider investing in these stocks for the long term, especially if they go down from here.

Key points about this article:

• Finding tech stocks to buy in this current environment can be a difficult task with all the bearish indicators flashing red right now.
• However, these three stocks appear to be decently valued, with strong long-term growth prospects that could propel them much higher over the next 10 to 20 years.
• If you are looking for action with huge potential, be sure to grab a free copy of ours brand new “Next NVIDIA” report.. It has a software stock where we are sure it has 10x potential.

Adobe (ADBE)

Adobe logo on the side of an office building

Adobe (NASDAQ:ADBE) recently reported a strong quarter, post $5.31 billion in revenue, up 10.2% year over year. The company beat expectations for revenue, RPO and EPS, largely due to a Digital Media ARR of $487 million. That figure beat estimates of $434 million and prompted the company to raise its annual guidance. Unsurprisingly, ADBE shares rose on these results, along with analysts noting that of the company record revenues driven by growth in Creative Cloud, Document Cloud and Experience Cloud should provide significant long-term upside.

I tend to agree. Adobe has a strong track record of exceeding projections and has a track record to back it up. Over the past 10 years, the company has grown its revenue to a 17.4% CAGRwhile free cash flow increased 19.7% and adjusted net income increased 36.4% annually. Despite these impressive growth rates, the stock’s price gain is moderate, indicating fair value relative to its business performance.

Importantly, this is also a company that has integrated AI into its core suite of products. The company recently announced that it will introduce Generative AI in its Creative Cloud suiteenhancing tools like Photoshop and Premiere Pro with the Firefly AI engine for tasks like photo and video editing with simple text commands. I think that while there will always be room for improvement on this front and it will take time for investors to fully realize the impact of these investments, this is a company that is clearly headed in the right direction. As far as top tech stocks go, Adobe earns a buy rating from me for now.

Qualcomm (QCOM)

Qualcomm Stadium logo on the side of the stadium

Qualcomm (NASDAQ:QCOM) beat analysts’ expectations for it Results Q3 and guidance for Q4 despite weakness seen in the company’s smartphone segment. Despite this weakness, analysts are projecting potential revenue growth of 5% for the next fiscal year, with a return of AI-powered devices. We’ll have to see how that goes. But I think it’s important for investors to consider the company’s extended partnership with Apple (the next company on this list), which runs through 2026. That partnership should continue to provide cash flow stability and the optionality to allow Qualcomm to look for the best opportunity that fits his model. It is also a dynamic that has allowed some analysts, such as those from Baird to upgrade its rating on the stock and raise its price target. If demand is strong as anticipated for the iPhone 16 and Apple doesn’t want to jump through the hoops of finding new suppliers, this is a stock that could be seriously undervalued here.

But even without the Apple deal, Qualcomm is a company I think is worth exploring. Qualcomm’s IoT segment supports smart home devices, remote monitoring and robotics, while its automotive division focuses on autonomous driving and digital cockpit technologies. Qualcomm recently ventured into PC chips with its Snapdragon platform, offering high performance and long battery life. Despite phones driving 63% of revenue in Q3 fiscal 2024, IoT contributed 15% and automotive grew to 9%, up 87% year-over-year.

from Qualcomm low ratingwith a price-to-earnings ratio of 21 times sets it apart from other major chip stocks. Following a decline due to declining smartphone sales and the end of the 5G upgrade cycle, Qualcomm’s revenue growth rebounded 11% annually to $9.4 billion in Q3. Net income rose 18% to $2.1 billion, making the stock a strong value given its upside potential, especially as 5G adoption increases.

The Apple logo on the side of a building in Paris

Apple Inc. (NASDAQ:AAPL) is among the leading consumer discretionary brands globally. Anyone who hasn’t heard of Apple has probably been living under a rock. This is a company that leads in market share in most developed markets, for good reason. The quality of Apple’s products and services, as well as the value provided by its ecosystem, keeps consumers coming back for more.

The analysts design AI PC shipments will grow from 44 million in 2024 to 103 million in 2025. Despite concerns over new EU regulations, Bank of America analyst Wamsi Mohan held a Purchase rating for Apple with a $256 price target, noting the company’s ability to adapt to regulatory changes.

I think ratings like these speak to Apple’s core vision as a way for consumers to use AI every day. The company is among the most used brands on a daily basis. If Apple can integrate AI well into its offerings, it’s off to a flying start for this gem. At least, that’s what many analysts think.

Over the long term, many investors have been wrong to bet against Apple. And while I may have some reservations about the company’s valuation, I can understand its value to the consumer. As far as stocks to hold for a decade or two, this would be at the top of my list.

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