3 Growth Stocks Slammed by 30%—Here’s Why They’re Still Smart Buys

The tech-driven growth sector has faced a reckoning in 2025, with many high-flyers down 30% or more from their peaks. Yet beneath the volatility, three companies—Nvidia (NVDA), Taiwan Semiconductor Manufacturing (TSM), and ASML Holding (ASML)—are positioned to capitalize on secular trends like AI, advanced semiconductors, and cloud infrastructure. Their declines have created buying opportunities for investors willing to look past near-term headwinds.

1. Nvidia (NVDA): The AI Chip Leader Still Worth the Price

Nvidia’s stock has dropped over 30% year-to-date, pressured by macroeconomic uncertainty and a temporary slowdown in data center demand. Yet this is a rare chance to buy a dominant player in the AI value chain.

Why Buy Now?
- AI’s Infrastructure Play: Nvidia’s GPUs power AI “hyperscalers,” and CEO Jensen Huang forecasts global data center spending to nearly double to $1 trillion by 2028.
- Valuation Check: Trading at 23x forward earnings, it’s cheaper than its 5-year average of 31x. Analysts estimate data center revenue could hit a third of global data center spending by 2028.
- Analyst Consensus: Morgan Stanley’s Joseph Moore calls it a “no-brainer” at current levels, citing long-term AI adoption as inevitable.

2. Taiwan Semiconductor Manufacturing (TSM): The World’s Semiconductor Engine

TSM has tumbled 30% YTD due to trade tensions and near-term revenue softness. But this is a temporary setback for a company at the heart of AI’s semiconductor boom.

Why Buy Now?
- AI-Driven Growth: TSM supplies advanced chips for AI applications, with AI-related revenue expected to double in 2025. A 45% CAGR over five years is projected for its AI segment.
- Valuation Discount: At 19.8x forward earnings, it trades below the S&P 500’s 20.5x multiple, despite outpacing the market’s growth rate.
- Analyst Consensus: Bernstein’s Stacy Rasgon calls it a “steal,” noting that tariff fears are overblown compared to its long-term AI tailwinds.

3. ASML Holding (ASML): Monopolizing the EUV Chip Market

ASML’s stock has plunged over 30% from its peak, hit by macroeconomic jitters and a temporary slowdown in chip demand. But its moat in extreme ultraviolet (EUV) lithography remains unassailable.

Why Buy Now?
- EUV Dominance: ASML controls 100% of the EUV market, critical for advanced semiconductor manufacturing. A single ASML machine costs $180 million and takes two years to build.
- Growth Catalysts: A 10% stock buyback plan announced in Q1 aims to boost shareholder returns, while AI’s chip requirements will only increase its relevance.
- Valuation Check: At 24.4x forward earnings, it’s undervalued relative to its 28% annual EPS growth over the next five years.

Key Themes to Watch

• AI’s Infrastructure Demand: All three stocks benefit from the $1 trillion AI chip opportunity, with data center spending set to surge.
• Valuation Discounts: Despite the declines, these stocks trade below their fair value due to short-term macro fears, not fundamentals.
• Analyst Consensus: 26 of 30 analysts rate NVDA and TSM as “Buy” or “Strong Buy,” while ASML holds an average rating of 4.5/5.

Conclusion: A Buying Opportunity in Tech’s Future

The declines in NVDA, TSM, and ASML are overdone relative to their long-term prospects. Consider these three metrics:
1. Nvidia’s Data Center Revenue: Expected to grow at 20%+ annually through 2028, outpacing its current valuation.
2. TSM’s AI Revenue CAGR: 45% over five years vs. its 19.8x P/E, a compelling mismatch.
3. ASML’s EUV Orders: Backlog remains robust at $28 billion, with AI’s chip complexity ensuring sustained demand.

Investors should prioritize these stocks for their wide moats, exposure to AI’s $1 trillion opportunity, and discounted valuations. While short-term volatility may persist, the long-term thesis is clear: these companies are building the infrastructure of tomorrow’s digital economy.

In a market obsessed with the next headline, these three stocks reward investors who focus on what matters most: secular growth and durable competitive advantages.