Two Tech Stocks To Watch On The Dip

Investors often strive to outperform market indexes, and buying shares during a dip can be a strategic move.

Two notable stocks catch the eye of many for their potential: Advanced Micro Devices (NASDAQ: AMD) and HubSpot (NYSE: HUBS). Both companies have experienced a pullback from their recent highs, presenting what could be an opportune moment for investors.

Advanced Micro Devices: A Semiconductor Powerhouse

AMD is a renowned leader in the semiconductor industry, currently trading 30% off its 52 week high. This significant drop might dissuade some, but for those looking at the company's fundamentals, it presents a buying opportunity.

The company's data centre revenue is a particular growth highlight, having increased by an impressive 80% year over year in the last quarter. This surge is largely attributed to the launch of its new MI300 data centre chips. These processors are critical to data centres' need for robust computing capabilities, and AMD's innovation is paying off.

Furthermore, data centre revenues have grown to account for nearly half of AMD's total revenue, up from 25% in the fiscal year 2022. This marks a considerable shift in the company's revenue sources, demonstrating its success in a rapidly expanding market.

Analysts remain bullish on AMD, with the consensus target representing some 28% upside from the current mark. If these predictions hold true, AMD could offer market-beating returns over the next several years, making it a compelling buy for growth-oriented investors.

HubSpot: Dominating Customer Relationship Management

In the sphere of customer management software, HubSpot has made its mark, catering to over 215,000 customers primarily comprising small to medium-sized businesses. HubSpot's 23% year-over-year revenue growth in the last quarter is particularly noteworthy given the slowdown in enterprise software spending.

Looking at the broader market, the customer relationship management (CRM) software sector is predicted to grow at an annual rate of 10% through 2029, reaching a market value of $146 billion. HubSpot is already outpacing this growth and is anticipated to continue on this trajectory with a forecast of 25% annualised earnings growth over the long term.

The recent dip in stocks of AMD and HubSpot may represent a strategic entry point for investors, or the start of a prolonged bearish shift.

Fundamentally, both companies showcase robust revenue growth and significant market potential, backed by positive analyst outlooks (however fleeting that may be). While market dips can be disconcerting, they can also offer moments of opportunity.