The tech industry continues to go through a sharp selloff in January, continuing the troublesome trend from 2021, as the first month of 2022 nears its end. The downturn has led to some of the most popular Canadian tech stocks trading for substantial discounts on the stock market from their all-time highs.
Volatile markets provide value-seeking investors with the perfect opportunity to find high-quality and undervalued stocks. The tech sector is not where investors typically go looking for bargains, but the present conditions for the tech industry paint a different picture.
Today, I will discuss two top tech stocks trading for substantial discounts to help you determine whether the high-growth assets could be worth adding to your self-directed portfolio.
Lightspeed
Lightspeed Commerce (TSX: LSPD)(NYSE: LSPD) has gone through an immense selloff in its recent past. To get a better picture, Lightspeed stock has declined by almost 75% from its 52-week high in September 2021. At writing, Lightspeed stock is trading for $40.03 per share, which is incredibly cheap.
The company will likely continue facing challenges in the short term due to continued fears of the pandemic, rising interest rates, and issues with the economic reopening. However, its long-term growth prospects remain strong. The company has provided a crucial service to its customers during the pandemic and introduced several new products to cater to the changing consumer demands in the new normal.
Further market penetration, expansion into high-growth markets, and a greater number of offerings could support its growth for years to come.
Nuvei
Nuvei (TSX: NVEI)(NASDAQ: NVEI), like Lightspeed stock, has gone through a significant correction in its share prices over recent months. At writing, Nuvei stock is trading for $78.77 per share, down by 55% from its 52-week high from September 2021. At such discounted levels, Nuvei stock looks well positioned to provide its investors with significant returns.
The company has expanded its geographical presence through strategic acquisitions. It has the ability to introduce new products and expand its offerings to attract a wider customer base. Nuvei has also started to penetrate more high-growth verticals, unlocking the potential for significant future growth.
Increased revenues from existing verticals and positioning itself well for the future could drive its growth by a significant margin in the coming months, as the tech selloff cools down.
Foolish takeaway
Investing in the tech stock as the selloff might be a slightly risky proposition. There is no telling how much further the downturn might continue, but it will eventually end at some point. When the tech sector bottoms out and begins posting gains again, investors who scooped up shares of the right tech companies could see significant long-term upside through the recovery.
Lightspeed Commerce stock and Nuvei stock are both going through a downturn aligning with the broader sector. However, the two tech stocks are well positioned to post an eventual but rapid recovery that could possibly double your investment.
