3 High-Growth Stocks Down 25% to Buy Before the 2026 Tech Rebound

The tech sector has taken a beating in 2026. Many stocks are well off their all-time highs, and a handful are down more than 25%. I think there are some great deals available, and investors shouldn't squander this investment opportunity that comes about only every few years.

The three stocks I've got my eye on as strong rebound candidates are Microsoft (NASDAQ: MSFT), Broadcom (NASDAQ: AVGO), and Meta Platforms (NASDAQ: META). All three stocks are down 25% or more, and each makes for an incredible buy right now.

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1. Microsoft

It's difficult to imagine Microsoft being down more than 30% from its all-time high, but that's where we find ourselves. Over the past decade, Microsoft has fallen more than 30% from its all-time high just once -- in late 2022.

If you rewind the clock four years, you may recall that the market assumed that we were headed straight into a recession and that the economy was going to tank. While that drawdown never surfaced, it didn't stop stocks from heavily selling off. For Microsoft to be that far off its all-time high seemed reasonable at the time.

For Microsoft to trade this much off of its highs without a huge event like an economic crash potentially looming makes no sense.

Microsoft is a leader in the artificial intelligence (AI) race, and its platform is becoming the go-to place to build and run AI applications. Microsoft is well positioned to move its company into the next generation of tech, and I think the recent sell-off is a massive buying opportunity.

2. Meta Platforms

Part of the reason for Meta's and Microsoft's sell-off has to do with capital expenditure plans. Meta expects to spend $115 billion to $135 billion this year. That's basically all of its cash flows, and it shows how big Meta believes AI will be for its future. The market isn't buying this, which is why the stock is down more than 25% from its all-time high.

However, if you solely look at the business execution, you'd probably assume that Meta's plan is working flawlessly. In the fourth quarter, Meta's revenue rose 24% year over year, showcasing its best-in-class advertising platform via its social media sites. Meta is continuously working on new AI products and how it can integrate that technology into its existing business. This is something that should be celebrated, but because Meta is dumping all its cash into AI computing capabilities, the market is getting a bit skeptical.

With Meta's stock trading at a mere 19 times forward earnings, it looks like a great bargain right now.

3. Broadcom

Last is Broadcom, and considering the hype around its custom AI chips, I'm amazed that it's sold off this much. Broadcom's custom AI chips business is openly challenging Nvidia's dominance in this space.

Broadcom is partnering directly with AI hyperscalers to design a chip that is purpose-built for their AI workloads. This can lead to better performance at a lower price point but at the cost of flexibility. This seems to be a trade-off that AI hyperscalers are willing to make, because Broadcom's chip business is booming.

In Q1 of fiscal year 2026 (ending Feb. 1), its AI semiconductor division totaled $8.4 billion in sales. Custom AI chips are a part of that division but not all of it. That's an annualized run rate of about $34 billion.

However, Broadcom's CEO Hock Tan believes that custom AI chips will generate $100 billion in revenue by themselves by the end of 2027. That's incredible growth in just a year and makes Broadcom look like a genius investment, even at an elevated price tag. However, the stock is down 25% from its all-time high, making it a no-brainer buy right now.

Keithen Drury has positions in Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.