{"id":1977,"date":"2025-09-27T00:58:19","date_gmt":"2025-09-27T00:58:19","guid":{"rendered":"https:\/\/www.finznest.com\/blog\/2-tech-gems-to-buy-despite-ai-bubble-fears\/"},"modified":"2025-09-27T00:58:19","modified_gmt":"2025-09-27T00:58:19","slug":"2-tech-gems-to-buy-despite-ai-bubble-fears","status":"publish","type":"post","link":"https:\/\/www.finznest.com\/blog\/2-tech-gems-to-buy-despite-ai-bubble-fears\/","title":{"rendered":"2 Tech Gems to Buy Despite AI Bubble Fears"},"content":{"rendered":"<div>\n<ul>\n<li>Amid growing concerns of an AI bubble, investors are on the hunt for resilient tech gems that offer strong fundamental growth prospects.<\/li>\n<li>Two standout contenders are Shopify and Fortinet, both of which present robust investment cases driven by solid business models and favorable industry tailwinds.<\/li>\n<li>For investors seeking tech stocks with strong fundamentals and long-term growth potential, these two names stand out as compelling choices.<\/li>\n<li><strong>Looking for actionable trade ideas? <\/strong><strong>Subscribe now to unlock access to InvestingPro\u2019s AI-selected stock winners!<\/strong><\/li>\n<\/ul>\n<p>As whispers of an AI bubble grow louder, with tech stocks facing scrutiny over lofty valuations reminiscent of the dot-com era, investors are understandably cautious.<\/p>\n<p><em>Source: Investing.com<\/em><\/p>\n<p>Yet, amid this uncertainty, two tech stalwarts\u2014Shopify (NASDAQ:) and Fortinet (NASDAQ:)\u2014stand out as compelling buys. Their robust fundamentals, strategic positioning, and exposure to durable growth trends make them resilient picks, even if an AI-driven market correction looms.<\/p>\n<p>Here\u2019s why these companies deserve a place in your portfolio and the tailwinds propelling them forward.<\/p>\n<h2><strong>1. Shopify<\/strong><\/h2>\n<ul type=\"disc\">\n<li><strong>Year-To-Date Performance: +34.9%<\/strong><\/li>\n<li><strong>Market Cap: $186.4 Billion<\/strong><\/li>\n<\/ul>\n<p>Shopify, the Canadian e-commerce giant, has cemented itself as a leader in empowering businesses to thrive in the digital economy. While Shopify\u2019s stock has surged nearly 35% year-to-date, outpacing broader markets, its forward price-to-sales ratio of 14.7x and price-to-earnings ratio of 89.5x reflect a premium valuation. However, this premium is justified by Shopify\u2019s relentless growth and adaptability.<img decoding=\"async\" title=\"Shopify-Daily Chart\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/pic096e52bd5e36ee04a7b53ae11e8b87c8.png\" alt=\"Shopify-Daily Chart\" align=\"bottom\" border=\"0\"\/><\/p>\n<p><em>Source: Investing.com<\/em><\/p>\n<p>Shopify\u2019s international expansion represents a significant growth catalyst that remains underappreciated by many investors. While the company has achieved strong market penetration in North America, enormous opportunities exist in Europe, Asia, and Latin America.<\/p>\n<p>Wall Street\u2019s bullish outlook, with 24 of 32 analysts rating it a Strong Buy, underscores confidence in its long-term potential, even if short-term volatility persists due to market concerns about an AI bubble. Oppenheimer\u2019s recent $180 target underscores confidence that Shopify\u2019s momentum is structural, not cyclical.<img decoding=\"async\" title=\"Shopify Stock Screener\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/pic885d59156764461d67f8588e901a1724.png\" alt=\"Shopify Stock Screener\" align=\"bottom\" border=\"0\"\/><\/p>\n<p><em>Source: InvestingPro<\/em><\/p>\n<p>Shopify boasts a &#8220;GREAT&#8221; Financial Health score of 3.71, reflecting its robust balance sheet and operational resilience. This top-tier rating is backed by strong liquidity and consistent profitability over the last twelve months.<\/p>\n<h2><strong>2. Fortinet<\/strong><\/h2>\n<ul type=\"disc\">\n<li><strong>Year-To-Date Performance: -11.9%<\/strong><\/li>\n<li><strong>Market Cap: $63.7 Billion<\/strong><\/li>\n<\/ul>\n<p>Fortinet, a cybersecurity powerhouse, offers another compelling case for investors seeking stability amid AI bubble fears. The company\u2019s focus on next-generation firewalls, secure access service edge (SASE), and AI-driven security solutions positions it at the heart of a critical and growing industry.<\/p>\n<p><img decoding=\"async\" title=\"Fortinet Stock Chart\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/pic04833b2cf42120eb8d79fcf333d7ba21.png\" alt=\"Fortinet Stock Chart\" align=\"bottom\" border=\"0\"\/><\/p>\n<p><em>Source: Investing.com<\/em><\/p>\n<p>The company\u2019s flagship product, FortiGate, is a highly regarded firewall solution that has driven strong demand across industries. Furthermore, Fortinet\u2019s unified SASE platform, which integrates networking and security, has seen strong momentum, allowing businesses to streamline operations and reduce costs\u2014a competitive edge over rivals like CrowdStrike and Zscaler.<\/p>\n<p>Analysts remain optimistic, with TD Cowen recently raising its price target to $135, citing Fortinet\u2019s energy-efficient firewalls and hyperscale data center demand. Even after a 25% post-earnings pullback in August, analysts view the selloff as an overreaction, with 650,000 firewalls still needing replacement, offering significant cross-selling opportunities.<img decoding=\"async\" title=\"Fortinet Stock Screener\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/picceeb819eb4c3ea9531300935a2e3a3eb.png\" alt=\"Fortinet Stock Screener\" align=\"bottom\" border=\"0\"\/><\/p>\n<p><em>Source: InvestingPro<\/em><\/p>\n<p>Fortinet\u2019s 3.15 Financial Health score and &#8220;GREAT&#8221; label put it at the top of the tech class, underpinned by a balance sheet with more cash than debt, a robust 233.7% return on equity, and 32.3% EBITDA margin. It has a Fair Value price target of $97.49\u2014about 17% above today\u2019s price of $83.21.<\/p>\n<h2><strong>Bottom Line<\/strong><\/h2>\n<p>Shopify and Fortinet represent compelling investments for technology-focused portfolios seeking companies with solid fundamentals independent of AI speculation. Both businesses address large, growing markets with solutions that become more valuable over time through network effects and customer dependency.<\/p>\n<p>Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. Whether you\u2019re a novice investor or a seasoned trader, InvestingPro provides a comprehensive suite of tools designed to help investors make informed decisions in any market environment. These include:<\/p>\n<ul style=\"list-style-type: none;\">\n<li>AI-managed stock market strategies re-evaluated monthly.<\/li>\n<li>10 years of historical financial data for thousands of global stocks.<\/li>\n<li>A database of investor, billionaire, and hedge fund positions.<\/li>\n<li>And many other tools that help tens of thousands of investors outperform the market every day!<\/li>\n<\/ul>\n<p><strong>Not a Pro member yet? Check out our plans here.<\/strong><\/p>\n<p><strong><em>Disclosure: <\/em><\/strong><em>At the time of writing, I am long on the S&amp;P 500, and the Nasdaq 100 via the SPDR\u00ae S&amp;P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), and Invesco S&amp;P 500 Equal Weight ETF (RSP).<\/em><\/p>\n<p><em>I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies\u2019 financials.<\/em><\/p>\n<p><em>The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.<\/em><\/p>\n<p><em>Follow Jesse Cohen on X\/Twitter <\/em><a href=\"https:\/\/twitter.com\/JesseCohenInv\" target=\"_blank\" rel=\"nofollow noopener\"><em>@JesseCohenInv<\/em><\/a><em> for more stock market analysis and insight.<\/em><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><script id=\"fb_pixel\" data-nscript=\"beforeInteractive\">!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https:\/\/connect.facebook.net\/en_US\/fbevents.js');<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amid growing concerns of an AI bubble, investors are on the hunt for resilient tech gems that offer strong fundamental growth prospects. Two standout contenders are Shopify and Fortinet, both of which present robust investment cases driven by solid business models and favorable industry tailwinds. For investors seeking tech stocks with strong fundamentals and long-term [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1978,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[919,228,920,566,763],"class_list":["post-1977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-bubble","tag-buy","tag-fears","tag-gems","tag-tech"],"_links":{"self":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/1977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/comments?post=1977"}],"version-history":[{"count":0,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/1977\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media\/1978"}],"wp:attachment":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media?parent=1977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/categories?post=1977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/tags?post=1977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}