Technology stocks have taken a big beating in recent months as the Trump administration's policies have led investors to press the panic button amid concerns that the tariff-fueled global trade war could hurt the U.S. economy and may even send it into a recession.

Investors have become risk-averse, which explains why high-flying tech stocks that were benefiting big time from the rapid adoption of cloud computing and artificial intelligence (AI) have pulled back substantially. The tech-heavy Nasdaq Composite index, which hit its most recent high on Dec. 16 last year, has shed nearly 23% of its value since then and now trades in bear territory.

Tech investors got another big shock on April 3 as the Nasdaq Composite fell 6% in a single day in the wake of the wide-ranging tariffs announced by the Trump administration. That's not surprising as the trade war is expected to escalate manufacturing costs for tech companies with overseas supply chains. All this negativity explains why tech companies saw big sell-offs despite robust growth in recent quarters.

However, the Nasdaq sell-off also means that there are solid companies that can be bought at attractive valuations right now. Let's take a closer look at two such names that are growing at an attractive pace and seem like great bargains right now.

These AI leaders could keep growing despite the trade war

AI leader Nvidia's (NVDA 3.38%) stock price fell 13% last week following the announcement of what the Trump administration labeled as "reciprocal tariffs." Broadcom (AVGO 5.30%) saw a similar drop. The U.S. levied import taxes of 32% on products coming from Taiwan.

Both Nvidia and Broadcom are fabless chipmakers that rely on Taiwan-based foundry giant Taiwan Semiconductor Manufacturing (TSM -0.68%) to fabricate their chips. Not surprisingly, both semiconductor stocks were in sell-off mode after tariffs were announced. However, a key thing to note here is that semiconductor imports are exempt from the tariffs levied last week, which should come as a reprieve for Nvidia and Broadcom (at least for now).

The growing consensus is that chip stocks could see less of a headwind during the ongoing trade war. Truist Securities analyst William Stein adds that the race to develop AI applications, even at high costs, by customers of Nvidia and Broadcom could help them maintain their healthy growth levels.

Another thing worth noting here is that President Donald Trump has adopted a soft stance on TSMC after the latter announced a $100 billion investment to build advanced chipmaking facilities in the U.S. This planned outlay will take TSMC's investment in the U.S. to $165 billion and is reportedly one of the reasons why semiconductor imports have been exempted from reciprocal tariffs.

As such, Nvidia and Broadcom's manufacturing costs may remain in check, and they may be able to sustain their impressive growth rates considering the huge amounts being spent on AI infrastructure. U.S. tech giants are expected to raise their capital spending this year by 46% to $325 billion thanks to their AI efforts. Nvidia and Broadcom are expected to be key beneficiaries of this massive outlay.

Nvidia dominates the AI data center graphics processing unit (GPU) market with a 92% market share. Broadcom reportedly controls an impressive 70% of the custom AI chip market. Both these markets are forecasted to see impressive growth in the long run. While the market for AI GPUs is expected to clock 31% annual growth through 2030 and generate $373 billion in annual revenue, Broadcom's addressable market in custom AI processors could exceed a range of $60 billion to $90 billion in the next three years.

These lucrative markets already led to outstanding growth for both companies. Nvidia's revenue in the latest fiscal year shot up 114% to $130.5 billion along with a 130% increase in earnings. Broadcom reported a 25% jump in revenue in the first quarter of fiscal 2025 to $14.9 billion along with a 45% bump in the bottom line.

Looking ahead, the potential improvement in productivity and the global economy thanks to the benefits of AI is the reason why these massive infrastructure investments could be sustainable in the long run. That's why buying Nvidia and Broadcom for the long haul could turn out to be a smart move, especially considering their attractive valuations and upside potential.

Nvidia and Broadcom are too cheap to ignore right now

As already noted, Broadcom and Nvidia saw robust growth in their revenue and earnings. Even better, their valuations make them bargain buys right now. Nvidia and Broadcom stocks trade at identical forward-earnings multiples of 22. What's more, their price/earnings-to-growth (PEG) ratio further indicates that they are cheap when factoring in the growth that they could deliver.

Nvidia has a PEG ratio of 0.91 based on the five-year earnings growth that it could deliver (as per Yahoo! Finance), while Broadcom's reading stands at 0.39. A PEG ratio of less than 1 means that a stock is undervalued when its earnings growth potential is taken into account.

Throw in the fact that analysts are upbeat about both stocks' potential performance in the coming year, and it is easy to see why investors should consider buying them. Out of 67 analysts covering Nvidia, 91% recommend buying it. Its median 12-month price target of $175 points toward an 85% jump from current levels. Meanwhile, 89% of the 44 analysts covering Broadcom recommend buying it, with the median price target of $250 pointing toward a 70% jump in the next year.

Both stocks could indeed deliver such terrific gains based on their growth potential. Analysts expect Nvidia's earnings to increase by 51% in the current fiscal year, and Broadcom could deliver a 35% increase. So, investors can consider buying these two AI stocks following their recent pullbacks as they seem capable of soaring impressively in the next year and beyond.