Nasdaq Pullback: 3 Stocks You'll Wish You Bought on the Dip

There's good news and bad news for the Nasdaq Composite Index (NASDAQINDEX: ^IXIC). The good news is that the widely followed index has rebounded somewhat after plunging as much as 13% below its previous high. What's the bad news? The Nasdaq is still squarely in negative territory this year.

But I think there's great news for investors following the steep Nasdaq pullback. Many high-quality stocks are available at a discount. Here are three stocks you'll probably wish you had bought on the dip.

Image source: Getty Images.

1. Alphabet

Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) share price movement has moved in lockstep with the Nasdaq so far this year. However, the world's largest communication services company by market cap has experienced an even steeper share price decline than the index. I think this sell-off is overdone.

Investors' exuberance about the artificial intelligence (AI) investment opportunity has diminished significantly. But Alphabet's tremendous AI prospects can't be ignored. Consider that Google Cloud's revenue soared 48% year over year in the fourth quarter of 2025 to $17.7 billion, yet the unit still has a backlog of $240 billion. That's something to be exuberant about, in my opinion.

It wasn't that long ago that some were writing off Alphabet, predicting that generative AI would render Google Search obsolete. Those predictions have proven to be dead wrong. Google developed one of the most powerful AI models, Gemini, and integrated it into its search engine, introducing new AI Overviews and AI Mode features. The result: Higher rather than lower search traffic. Also, AI Mode queries are typically three times longer than traditional searches. This creates more monetization opportunities for Google.

Alphabet also has multiple other growth drivers to watch over the next few years. I'm most excited about the prospects for the company's Waymo autonomous ride-hailing service and its Google Quantum AI unit. I predict both will contribute significantly to Alphabet's revenue in the not-too-distant future.

2. MercadoLibre

MercadoLibre (NASDAQ: MELI) has been hit especially hard during the broader Nasdaq pullback. The Latin American e-commerce and fintech stock has plunged more than 30% below its peak set last summer and is down by a double-digit percentage year to date.

What's behind MercadoLibre's malaise? Three factors especially stand out. First, the company's operating profit margins have shrunk. Second, the military conflict between the U.S./Israel alliance and Iran has created significant uncertainty and driven fuel prices higher. Third, MercadoLibre's lofty valuation makes it particularly sensitive to broader market declines.

I'm not concerned about MercadoLibre's margin compression. The company is investing in growth opportunities that I expect will pay off handsomely. I'm also cautiously optimistic that the Middle East crisis will be resolved within the next few months.

That leaves MercadoLibre's valuation as the remaining key issue. At first glance, the stock appears relatively expensive, with a forward price-to-earnings ratio of 28.5. However, MercadoLibre's growth potential justifies the premium price tag, in my view. This stock should have plenty of room to run.

3. Nvidia

Like Alphabet, Nvidia (NASDAQ: NVDA) has been a victim of AI fatigue in recent months. But while the GPU giant has held up better than most AI stocks, I think the dip presents a buying opportunity.

Rivals would love to knock Nvidia off its perch atop the AI chip market. However, Nvidia's pace of technological advances makes it very difficult for them to be successful. As a case in point, the company is preparing to begin shipping its new Rubin chips this year. The Rubin platform will reduce inference costs by up to 10x compared to Nvidia's Blackwell architecture -- and Blackwell has been incredibly popular with customers.

In my view, the market isn't fully pricing in Nvidia's potential opportunity in China. The company is preparing to sell its H200 GPUs in China after receiving clearances from both the U.S. and Chinese governments. CEO Jensen Huang recently stated, "We have received purchase orders, and we're in the process of restarting our manufacturing."

Nvidia's price-to-earnings multiple is well below its historical average over the last 10 years. Its price-to-growth-to-earnings (PEG) ratio is a low 0.71. Investors don't often get the chance to buy this stock at such an attractive valuation.

Keith Speights has positions in Alphabet and MercadoLibre. The Motley Fool has positions in and recommends Alphabet, MercadoLibre, and Nvidia. The Motley Fool has a disclosure policy.