History Says Now Is the Time to Buy These 2 Brilliant Stocks

The market seldom provides great buying opportunities for some of the best companies on the planet. However, with the latest round of tech sell-offs, that’s exactly where we find ourselves. Two of the most dominant stocks in the market over the past few years are on sale at historically cheap levels, and if you swoop in to buy shares now, you’ll be set to make a massive return.

Two stocks that I’m eyeing are Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT). Each of these stocks has reached relatively affordable levels, and now is the time to load up on shares.

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The first part of this analysis is to select a valuation metric. In my opinion, the price-to-forward earnings ratio is the best measure, as it allows investors to value the company on where it’s going rather than where it was. This is critical in a rapidly shifting artificial intelligence-powered landscape, as companies are spending billions of dollars on computing equipment to pursue AI as hard as they can.

Earnings a company produces over the past 12 months may be a more concrete way to value a business, but investors are doing themselves a disservice by not valuing the company based on forward earnings because that’s what the rest of the market is doing. The market is a forward-looking machine, so that’s the metric we should use.

From that standpoint, both Nvidia and Microsoft are valued at recently cheap levels.

MSFT PE Ratio (Forward) Chart
MSFT PE Ratio (Forward) data by YCharts

Microsoft is now cheaper than it ever has been since 2023 — even lower than the depths of the tariff sell-off in April 2025. Nvidia is in a similar boat, trading at levels not seen since April 2025 and the depths of the tech sell-off in 2023. Both of these times ended up being incredible buying opportunities for the stocks, and I think right now could also be just as good.

Nvidia is a primary beneficiary of all of the AI spending that has been announced. Its graphics processing units (GPUs) are the primary computing units utilized in AI model training and inference. With each new data center that’s built, Nvidia is likely to capture a huge sale. Furthermore, Nvidia is allowed to start exporting GPUs to China again, which could lead to a huge boost this year. Wall Street analysts project 65% growth in fiscal year (FY) 2027 (ending January 2027), showcasing that they expect another banner year for Nvidia.

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