3 Best Nasdaq Stocks to Buy in May

Despite Wall Street's optimistic outlook for big tech in 2025, most technology stocks have struggled significantly during the first four months of the year. The Nasdaq-100, which consists of the 100 largest nonfinancial companies listed on the Nasdaq stock exchange, has declined by nearly 7% year-to-date at the time of this writing.

While sharp marketwide corrections can be unnerving, history consistently demonstrates that these periods often create exceptional wealth-building opportunities for investors with a long-term perspective. Currently, investors have a rare chance to acquire shares in several world-class artificial intelligence (AI) pioneers at substantial discounts to their long-term commercial potential.

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Specifically, the following three Nasdaq-listed tech giants present compelling buying opportunities after a challenging start to 2025.

Image source: Getty Images.

The AI infrastructure king

With shares down a staggering 19% year-to-date, Nvidia (NASDAQ: NVDA) presents an exceptional buying opportunity amid the broader tech sell-off of 2025. This correction stands in stark contrast to Nvidia's strengthening position as the foundational hardware provider powering virtually every significant AI advancement.

The company's specialized graphics processing units (GPUs) have become indispensable infrastructure for AI development, creating a competitive advantage that rivals have failed to overcome. Nvidia's dominance extends beyond traditional computing into the emerging field of physical AI, where its Jetson platform enables sophisticated robotics applications that translate digital intelligence into real-world actions.

This technological leadership has translated into extraordinary financial performance, with annual revenue jumping by a staggering 383% over the prior three years (see graph below).

NVDA Revenue (Annual) data by YCharts

So, for investors with the foresight to look beyond current market volatility, Nvidia's recent sell-off may represent not just a stellar buying opportunity but a potential wealth-creation inflection point. After all, the AI titan will undoubtedly be a primary beneficiary of this unstoppable tech transformation, opening a multitrillion-dollar commercial opportunity for the company in the decades ahead.

The AI data integration specialist

In stark contrast to the broader tech market decline, Palantir Technologies (NASDAQ: PLTR) has surged a remarkable 52% year-to-date, significantly outperforming virtually all of its major tech peers. The stock's ability to swim against the current, so to speak, is a testament to Palantir's unique positioning at the intersection of data analytics, AI, and mission-critical operations. Its demonstrated strength in a soft market serves to underscore why its stock is a standout buy this month.

Palantir's software platforms, Gotham, Foundry, and Artificial Intelligence Platform (AIP), give organizations the ability to integrate massive datasets and deploy AI capabilities across their operations. What distinguishes Palantir is its proven ability to transform raw, disparate data into actionable intelligence through AI-powered analysis.

Furthermore, the company has established deep relationships with government agencies and defense departments worldwide, providing a stable revenue foundation. Meanwhile, its commercial business has accelerated dramatically as enterprises across industries recognize the value of Palantir's tools for implementing practical AI solutions.

With its established government relationships, expanding commercial presence, and purpose-built AI deployment platform, Palantir represents a different but equally compelling AI investment compared to hardware-focused companies like Nvidia. As a result, this red-hot tech stock should appeal to investors seeking exposure to the software and implementation side of the AI revolution even after rising in price.

The essential AI equipment supplier

Among broader tech market volatility, ASML Holding (NASDAQ: ASML) has experienced a modest 5.2% year-to-date decline. This pullback belies ASML's critical position in the AI value chain as the sole manufacturer of the extreme ultraviolet (EUV) lithography machines required to produce the world's most advanced semiconductor chips.

What makes ASML uniquely valuable is its monopoly on the equipment necessary for manufacturing the advanced chips that power AI applications. While short-term concerns about quarterly orders have weighed on the stock this year, the long-term demand signals remain extraordinarily compelling.

Major chipmakers like Taiwan Semiconductor Manufacturing Company and SK Hynix are significantly increasing their capital expenditures to meet the exploding demand for AI-capable semiconductors, with TSMC raising its spending by 34% and SK Hynix reportedly boosting its 2025 investment by 30% to $20 billion.

With this backdrop in mind, ASML's soft start to the year looks like a tremendous buying opportunity for investors who want exposure to a foundational AI infrastructure player.

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*Stock Advisor returns as of April 28, 2025

George Budwell has positions in Nvidia, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, Nvidia, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.