Key Points
Most AI data center owners and operators remain committed to this year’s big infrastructure spending plans.
Facebook parent Meta is well equipped to do something constructive with all the AI capacity it’s spending a fortune to build.
Alphabet shares could recover just as strongly as they tumbled, once investors remember what its core business still is.
- 10 stocks we like better than Alphabet ›
Plenty of stocks are down quite a bit just since the middle of the month. But it’s Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) that’s arguably inflicted the most net damage. The S&P 500‘s (SNPINDEX: ^GSPC) second-biggest name is now sitting 15% below its mid-May peak, clearing the way for other similarly sized names to suffer similar stumbles. And many of them have.
Veteran investors know, however, that such setbacks are opportunities more often than they’re omens.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
With that as the backdrop, here’s a closer look at three megacaps to buy on the dip led by Alphabet.
Image source: Getty Images.
Broadcom
The proliferation of artificial intelligence (AI) has been a boon for Broadcom‘s (NASDAQ: AVGO) business. Shares are up more than 556% since late 2022, in fact, on more than a doubling of the tech company’s revenue and comparable growth of its bottom line.
Of course, if demand for AI solutions weakens and, as a result, undermines demand for AI data center hardware, this growth will slow. If and when it does, AVGO’s steep valuation suddenly becomes a liability.
The likelihood of a dramatic reduction in demand for data center connectivity equipment, however, is actually pretty low. Owners and operators seem pretty committed to the $725 billion they’ve earmarked to invest in infrastructure this year, no matter how much demand for the service it provides is actually in the cards. This ticker’s 20% pullback from its early June peak — mostly due to disappointing Q3 guidance — may already fully price in whatever headwinds are blowing here.
Meta Platforms
Shares of Facebook parent Meta Platforms (NASDAQ: META) were falling well before the recent marketwide stumble. It just accelerated the decline. This stock’s now down 30% from last August’s peak and still knocking on the door of new multi-month lows, mostly because investors have been shellshocked by Meta’s 2026 capital expenditure budget, which is up to $145 billion.
Largely lost in the noise is the fact that Meta is perhaps positioned as well as any company can be to do something constructive with its AI computing capacity. After all, it’s got 3.56 billion consumers using at least one of its products at least once every day.
And the evidence of this argument is in the numbers. Although its active headcount actually fell in Q1, total ad impressions still grew 19% year over year, while the average price per impression improved 12%.
Alphabet
Finally, if you’re looking for discounted megacaps to buy here, put the recent bearish ringleader on your watch list, if not in your portfolio. That’s the aforementioned Alphabet.
It’s seemingly at risk of a broad AI slowdown. Just dig deeper. It’s gaining market share in public cloud services (leveraging its existing reach within the institutional market), as is its AI chatbot Gemini. Also, keep in mind that Alphabet’s breadwinning business is still Google itself, which accounted for more than 80% of Q1 revenue. This cash cow isn’t apt to hit a wall even if the artificial intelligence industry does.
Analysts aren’t deterred anyway. Despite the sizable setback caused by worried investors, the vast majority of the analyst community still rates this ticker a strong buy, with a consensus price target of $433.76, more than 25% above the stock’s current price.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $398,052!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,181,688!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 205% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 28, 2026.
James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Broadcom, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
