5 Best Tech Stocks to Invest In on the Dip

3. Intuit Inc. (NASDAQ:INTU)

Number of Hedge Fund Holders: 92

Stock Upside: 65.8%

Year-To-Date Performance: -55.65%

Intuit Inc. (NASDAQ:INTU) is one of the best tech stocks to invest in on the dip. Intuit Inc. (NASDAQ:INTU) holds a Moderate Buy rating from 23 analysts, with an average 12‑month target of $471.36 (65.8% upside), ranging between $276.00 and $875.00.

However on June 2, Goldman Sachs analyst Gabriela Borges downgraded Intuit Inc. (NASDAQ:INTU) from Neutral to Sell and slashed the price target from $519 to $276.

Borges’s main concern is TurboTax, Intuit’s flagship product that contributes about 25% of its total revenue and operating income. The analyst believes the product faces an existential threat from a new generation of AI-powered tax-filing tools. Borges pointed to Prime Meridian, Perplexity Tax, and Chime Tax and said they are now graduating beyond viral buzz into credible, scalable products with proper go-to-market strategies. As such, they are a real threat to TurboTax’s market dominance going forward.

The analyst estimated that the AI models can process a standard individual tax return for just $0.12. In comparison, users pay up to $162 to TurboTax. This cost gap is so wide that AI-native competitors can profitably undercut TurboTax without needing heavy investor subsidies, Borges noted. His base-case projection for TurboTax alone assumes that if just 20% of US tax filers shift to AI-only solutions, TurboTax revenue could end up roughly 18% below FY2025 levels by 2030.

The analyst also flagged that Mailchimp was supposed to achieve double-digit growth by the end of FY2026, but instead posted a slight year over year decline in the most recent quarter. Mailchimp is Intuit’s email marketing and automation platform that contributes about 7% of revenue. Borges expects the revenue deceleration to continue as Intuit adjusts its cost structure to a lower-growth reality.

Intuit Inc. (NASDAQ:INTU) is a financial software company. It provides consumer and business solutions through products such as TurboTax, QuickBooks, Credit Karma, and Mailchimp.