The recent sell-off in tech stocks has taken even the strongest companies down with it. Big tech continues to see robust demand for artificial intelligence (AI). This is driving growth not just for software, semiconductors, and cloud computing — it’s also driving tremendous investment in land, power, and construction to build data centers.
I believe the market is missing the long-term value in the following stocks, making them attractive buys on the dip.
Image source: Getty Images.
Microsoft
The market dip has sent Microsoft (MSFT +0.60%) shares down 30% from their previous high. Yet while the stock is trading at its biggest discount in years, management is growing more bullish. “Our [total addressable market] will grow substantially across every layer of the tech stack,” CEO Satya Nadella said on the last earnings call. Nadella believes Microsoft is still in the early innings of its AI opportunity, and the company’s numbers suggest he’s right.
Microsoft Azure is the second-largest cloud services provider behind Amazon, and it is gaining share. Azure grew revenue 39% year over year last quarter, outpacing Amazon Web Services’ 24% increase.
The demand for enterprise cloud services reflects the massive investments Microsoft has made in data centers, models, and its custom Maia and Cobalt chips. Microsoft secured long-term commitments from OpenAI and Anthropic last quarter, driving commercial bookings up 230% year over year.
Today’s Change
(0.60%) $2.54
Current Price
$422.80
Key Data Points
Market Cap
$3.1T
Day’s Range
$420.71 – $431.56
52wk Range
$355.67 – $555.45
Volume
2.4M
Avg Vol
38M
Gross Margin
68.59%
Dividend Yield
0.83%
Consumers have a lot of choice about which word processors or spreadsheets they use today. Here, too, Microsoft is showing it still has a formidable edge. Microsoft 365 consumer cloud revenue grew 29% year over year last quarter, with consumer subscriptions up 6%. This shows Microsoft is retaining and gaining new users as it integrates AI features across its products.
Microsoft has the data centers and chips to stay relevant and deliver returns to shareholders. Investors can currently buy the shares at a reasonable forward price-to-earnings multiple of 23, the lowest the stock has traded at in years.
Brookfield Asset Management
Brookfield Asset Management (BAM +1.65%) is one of the leading investment firms, with over $1.1 trillion in assets under management as of 2025. It manages money for institutional investors, but instead of putting their money in stocks and bonds, Brookfield buys hard assets with predictable cash flows: private equity, transportation, pipelines, utilities, and now data centers.
Brookfield Asset Management
Today’s Change
(1.65%) $0.80
Current Price
$49.32
Key Data Points
Market Cap
$79B
Day’s Range
$49.19 – $50.33
52wk Range
$42.20 – $64.10
Volume
105K
Avg Vol
4M
Gross Margin
96.43%
Dividend Yield
3.74%
The stock has fallen 30% from its recent high, but that could undervalue the company’s recent focus on investing big in AI infrastructure. AI will require tremendous investment in new data centers, and there’s only so much land, power, and water available to build these facilities and cool the high-performance chips that run inside them.
Brookfield launched a $100 billion new program to invest in the supply chain for AI infrastructure, including land and energy. In December, it announced a $20 billion joint venture with Qai to invest in AI infrastructure in Qatar and other international markets.
Brookfield Asset Management is a stable business that benefits from fees it collects for managing clients’ money, but it also carries risks. Higher interest rates could lower the value of the company’s assets and make it more challenging to raise money for investment.
But that’s why buying at the current discount is attractive. Brookfield Asset Management’s parent company, Brookfield, delivered annualized returns of 19% over the last 30-plus years. These market-beating returns reflect management’s track record of allocating capital to high-quality assets at attractive valuations.
Analysts expect Brookfield Asset Management to deliver roughly 14% annualized earnings growth over the coming years, consistent with management’s target to double the business’s size by 2030. The stock offers a forward dividend yield of 4.4% based on the quarterly payment of $0.5025 per share. This attractive yield for a world-class asset manager indicates solid value in the stock right now.
