Excitement surrounding artificial intelligence (AI) continues to drive the tech sector in 2024. Consequently, it is propelling the Nasdaq Composite index nearly 20% higher to record highs. This surge underscores the adage that “the best time to plant a tree was 20 years ago. The second best time is now.” This resonates strongly in today’s market, particularly with beaten-down tech stocks to buy.

Despite high valuations driven by investor enthusiasm, savvy investors can still find opportunities in undervalued tech stocks that could like recover soon. Recent declines, whether due to disappointing earnings or perceived overvaluation, have made several tech stocks compelling buys amid broader market optimism. These stocks, often overlooked in the current market frenzy surrounding the leading names in generative AI, may offer significant long-term potential.

With this in mind, let’s delve into three beaten-down tech stocks poised for a robust recovery in the latter half of 2024.

Enphase Energy (ENPH)

Global energy technology company Enphase Energy (NASDAQ:ENPH). As a leading provider of microinverter-based solar and battery systems, the company sits at the heart of the growing solar energy industry.

In 2024, Enphase Energy faced challenges from slowing solar projects amid high interest rates and macroeconomic uncertainties. In Q1 of 2024, revenues plunged over 60% year-over-year (YOY) to $263 million, meeting the lower end of guidance. Non-GAAP diluted EPS fell to 35 cents from $1.37 last year, though gross margins improved to 46.2%. The company maintained a solid net cash balance of $1.6 billion versus $1.3 billion in debt.

Despite these current headwinds, the International Energy Agency (IEA) anticipates solar photovoltaic (PV) investments to exceed $500 billion in 2024, outweighing all other energy sources combined. ENPH is seizing these opportunities by expanding internationally, such as introducing its IQ^® Battery 5P™ in Mexico and Canada. Also, it is entering the Finnish solar market and launching its Solargraf software platform in the Netherlands.

Moreover, ENPH stock has declined more than 25% year-to-date (YTD). Yet, it trades at relatively rich valuations of 35.5 times forward earnings and 7.7 times sales. Nonetheless, analysts remain optimistic and have set a 12-month median target of $130.00. Such an advance would mean an upside of over 30%, highlighting ENPH as a strong risk-reward opportunity.

Fortive (FTV)

Diversified industrial company Fortive (NYSE:FTV) specializes in professional instrumentation, automation, sensing and transportation technologies. Fortive operates through three segments of Intelligent Operating Solutions, Precision Technologies and Advanced Healthcare Solutions.  

In the Q1 of 2024, Fortive’s revenues grew 4% YOY to $1.5 billion but missed analysts’ estimates. Adjusted diluted EPS rose 11% YOY to 83 cents. Encouraged by these results, management raised the full-year 2024 earnings forecast, expecting double-digit growth.

Fortive’s revenue streams are well-diversified, with half coming from differentiated products. In addition, about a third comes from electrification and AI investments, and the remainder from recurring healthcare consumables and software revenues.

Focusing on growth, Fortive targets sectors like software and data analytics to expand its market presence. Investors are noting the strength in digital solutions and recurring healthcare incomes through Fortive’s software as a service (SaaS) offerings.

Since January, FTV stock has declined 2% since January. Currently Fortive shares are valued at 18.5 times forward earnings and 4.3 times sales. Finally, FTV stock remains attractive to analysts, who anticipate a 22% potential upside, with a 12-month median target of $88.63.

Intel (INTC)

Semiconductor company Intel (NASDAQ:INTC) is known for designing and manufacturing essential computing components, ranging from processors to data center solutions.

For the first quarter of 2024, Intel posted $12.7 billion in revenue. This 9% increase from the previous year’s quarter was driven by double-digit growth in Intel Products. Meanwhile, the foundry division dragged on revenue growth, declining 10% YOY. Adjusted EPS stood at 18 cents, compared to a loss of 4 cents last year.

In February, Intel strategically split its Product and Foundry divisions to enhance competition. The company is targeting break-even margins for Intel Foundry by 2030, aiming to become the world’s second-largest foundry. With its ambitious five-nodes-in-four-years (5N4Y) plan, many analysts suggest Intel is poised for growth. The upcoming launch of 18A Panther Lake CPUs and partnerships such as with Microsoft (NASDAQ:MSFT) on AI chips further reinforces its growth trajectory.

In fact, 2024 hasn’t been good for Intel share shareholders as the stock has lost 38% of its value YTD. Currently, the shares are trading at 24.3 times forward earnings and 2.4 times sales. Wall Street analysts project a 12-month median price of $36.00 for INTC stock, a potential upside of 17%.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.