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The global sell-off earlier this week caused investors to dump risky, overvalued assets and increase their exposure to safe havens. But as with any sell-off, the market recovered as investors digested the possibility of rate cuts. Some analysts called the market’s reaction to a weaker-than-expected jobs report an overreaction.

Although it is almost impossible to predict the right time to enter the market, one thing is certain: the overall market is rising in the long run. From 1928 to 2023, the U.S. stock market rose an average of 9.8% per year. No matter how much the markets fall, they recover sooner or later. That’s why it’s always a good idea to buy quality stocks when they’re down.

But which stocks are trading at a discount? We examined several investing discussion forums on Reddit to find out what retail investors are buying when stocks fall.

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Amazon

An overwhelming number of Reddit users in the subreddits we surveyed believe that Amazon.com (NASDAQ:AMZN) is trading at a discount and is a good buy. Over the past six months, Amazon stock has fallen about 18%. Following Amazon’s recent earnings results, JMP reiterated its Outperform rating on the stock and raised its price target to $245, citing growth and demand trends at AWS.

NVIDIA

Reddit users are divided in their opinion on NVIDIA (NASDAQ: NVDA). Some say the stock is likely to continue to post losses as demand for the chips wanes, while others believe the company is just getting started. However, after the recent sell-off, the number of Reddit users urging NVIDIA to buy has skyrocketed in investing subreddits. NVDA is down 18% over the past 30 days. New Street Research upgraded NVDA to Buy from Neutral, calling the recent sell-off a “healthy correction.”

Qualcomm

Redditors are highlighting Qualcomm Inc (NASDAQ:QCOM) as an underdog in the AI ​​space, trading at 20 times earnings and down about 23% over the past 30 days. They like Qualcomm for its strong growth in the automotive segment, recovery in the mobile phone business, and optimistic forecast.

Qualcomm’s mobile phone revenue rose 12% last quarter, while its automotive segment grew 87% year-on-year.

The story goes on

alphabet

Redditors say Alphabet (NASDAQ:GOOGL) is one of the best stocks to buy on the recent dip due to its AI research and long-term growth opportunities in other areas such as Waymo and cloud. During a recent discussion, Alphabet bulls on Reddit pointed to the latest research showing that Alphabet’s large language model Gemini beats all other LLMs. Some Redditors also believe that Alphabet is better than Tesla for self-driving cars.

Alphabet shares suffered another slump after the company lost an antitrust lawsuit brought by the Justice Department. Wedbush said in a new note that the development would not impact the company’s near-term operations and that the outcome could take “several quarters and possibly years.”

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Broadcom

Broadcom Inc (NASDAQ:AVGO) has also fallen 17% over the past 30 days, and investment discussion forums on Reddit are full of investors calling the chipmaker one of the best AI stocks to buy on a dip. Last month, Citi said based on an investor survey that Broadcom is “catching up to Nvidia” in terms of positive sentiment. Reuters has reported that OpenAI is in talks with Broadcom for a new AI chip. China’s ByteDance is also reportedly discussing an advanced AI processor with the company.

Taiwan Semiconductor

Taiwan Semiconductor (NYSE:TSM) is down 16% over the past 30 days. Redditors say this stock is worth buying on the dip as the company makes AI chips for almost all of the big-name AI frontrunners, including Apple, Nvidia, AMD, and Broadcom. Taiwan Semiconductor’s guidance for the current quarter beat Wall Street estimates.

AMD

Reddit users have been fans of Advanced Micro Devices Inc. (NASDAQ:AMD) for some time now. Yet the recent sell-off has left them drooling over the stock, especially after the chipmaker reported strong second-quarter results.

Following the release of the results, Bernstein raised his price target for AMD from $140 to $150.

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This article Reddit Says You Should Buy These 7 Stocks at a Discount After the Recent Market Crash originally appeared on Benzinga.com