Got $5,000? 2 Beaten-Down Tech Stocks Smart Money Is Quietly Accumulating

Key Points
Investors are concerned about how emerging AI tools could affect Salesforce's and Adobe's businesses.
Salesforce remains confident and established a $50 billion share repurchase program in February.
Adobe announced a new partnership with Nvidia that will allow it to use Nvidia's computing technology.
- 10 stocks we like better than Salesforce ›
After an AI-fueled run caused many big-name tech companies to shoot up in value over the past few years, it has been a slow start to 2026 for most of them. As of market open on March 18, all of the "Magnificent Seven" stocks and the tech-heavy Nasdaq Composite are down year to date.
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The one silver lining, however, is that recent declines have made some tech stocks much more attractive to long-term investors. If you have $5,000 available to invest, the following two beaten-down tech stocks are worth considering. It could get worse before it gets better, but they're both high-quality companies.
1. Salesforce
Down 23% so far this year, Salesforce (NYSE: CRM) has felt the force of the market doubting its ability to navigate ongoing pressure from other AI software and continue its historical high growth rates. These are valid concerns, but they seem a bit overblown.
A year-over-year revenue growth of 10% in its latest fiscal year (ended Jan. 31) may not be the pace that investors are used to seeing, but growing at a low double-digit rates at its scale shouldn't be frowned on.
Salesforce is fully ingrained in much of the corporate world's daily operations. It's not easy for corporates to just switch to a different platform. It's a tough task logistically and financially. That's one of Salesforce's key competitive advantages with its massive customer base.
The smart money buying Salesforce stock is itself. The company announced a $50 billion stock buyback program in February and, on March 16, a $25 billion accelerated share repurchase program. This is a sign that Salesforce believes its shares are currently undervalued.
Of course, you can't view the company's buyback plans as the be-all, end-all. However, Salesforce is trading well below its average over the past decade. For a company with its corporate presence and track record, there's much more upside than downside at its current valuation.
2. Adobe
Adobe (NASDAQ: ADBE) has lost nearly a quarter of its value year to date as investors have become concerned with how AI tools -- like those from Figma or Canva -- will affect demand for Adobe's more professional tools. Free AI tools may be good at creating party flyers, but professionals will still need the precision and abilities that Adobe tools provide. That's an area most newer tools will struggle to match.
Adobe is also leaning into AI to add more capabilities to its programs and hopefully compete with simpler alternatives. In its latest quarter, its AI-first annual recurring revenue more than tripled year over year, showing Adobe isn't letting AI replace its tool; it's embracing it for the better.
Shares of Adobe are currently trading at around 10.6 times its projected earnings for the next 12 months. This is only slightly above its lowest forward P/E number as a public company.
Considering Adobe's market position, this bargain seems too good to pass up for long-term investors -- especially amid a newly announced partnership with Nvidia that will allow it to use the company's advanced computing technology.
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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Figma, Nvidia, and Salesforce. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. 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.