A number of catastrophic headwinds imposed significant volatility, especially for popular tech stocks to buy. Primarily, the dovish monetary policies of the past came to roost this year, sending inflation skyrocketing. Now, the Federal Reserve must unwind prior excesses, resulting in a decline in money stock.

Depending on how far the central bank wants to go, the environment moving forward could be deflationary in nature. Because many tech stocks to buy receive support from dovish policies, a hawkish ecosystem presents significant challenges, hence their losses. Still, it’s also important to remember that the tech space undergirds myriad innovations. Therefore, the sector may not be deflated indefinitely.

To advantage what could be an incredible discount at this juncture, I used Gurufocus.com to extract relatively low-risk ideas that the market either undervalues or ignores. While these names require some patience and tolerance for volatility, it may be worth checking out for potentially large gains. With that, here are seven tech stocks to buy before the market blasts higher next year.

Microsoft (MSFT)

One of the biggest consumer technology firms in the world, Microsoft (NASDAQ:MSFT) essentially owns the business world. For instance, the company dominates the desktop operating system segment, commanding around 76% market share. In other words, if you don’t know your way around Microsoft applications, it’s going to be a long day in the office.

However, the market can’t seem to run fast enough away from tech stocks to buy, even the established stalwarts. Therefore, MSFT shares slipped 36% on a year-to-date basis. As well, circumstances look rough in the immediate picture, with MSFT losing 14% of equity value in the trailing month. Nevertheless, for those that have a longer-term perspective, the red ink represents a viable discount.

Financially, Microsoft is a profitability machine. For instance, its net margin of over 34% ranks better than nearly 97% of the industry. Moreover, Microsoft features a return on equity (ROE) of almost 43%, exceeding the levels printed by 96% of its peers. This reading also signifies that Microsoft represents a very high-quality business. Thus, MSFT easily ranks among the tech stocks to buy.

Taiwan Semiconductor (TSM)

Based in its namesake country, Taiwan Semiconductor (NYSE:TSM) is a semiconductor contract manufacturing and design company. Per its public profile, TSM is the world’s most valuable semiconductor company, the world’s largest dedicated independent semiconductor foundry and one of Taiwan’s largest companies. Unfortunately, these stats don’t impress Wall Street much, with shares dropping over 53% YTD.

Still, astute investors will be wise to ignore the noise and consider building a position. For one thing, Taiwan Semiconductor is significantly undervalued, according to Gurufocus.com. Using traditional metrics, TSM trades for 10.6 times forward earnings. In contrast, the industry median is 15 times forward earnings.

Like Microsoft above, Taiwan Semiconductor truly comes alive on the bottom line. The company’s net margin stands at 40.6%, ranking higher than over 97% of the competition. Also, its ROE and return on asset (ROA) rate within the top 10% of the industry, reflecting tremendous business quality. Fundamentally, then, TSM is a no-brainer among tech stocks to buy.

ASML (ASML)

An advanced semiconductor specialist, ASML (NASDAQ:ASML) specifically focuses on extreme ultraviolet (EUV) lithography. Per CNBC, ASML is one of a kind, the only company manufacturing the $200 million machines to print every advanced microchip. This fact alone suggests investors should consider ASML as one of the tech stocks to buy.

However, Wall Street apparently would rather focus on the sector’s challenges. Since the beginning of the year, ASML gave up nearly 45% of equity value. To me, this selloff seems overly harsh considering the company’s unique offerings. Moreover, Gurufocus.com rates ASML as modestly undervalued based on its proprietary calculations.

More importantly, ASML represents a high-quality business. Both its ROE and ROA rank among the sector’s top echelon. On the top line, the company’s three-year revenue growth rate stands at 20.9% beating out over 76% of its rivals. Plus, during the same period, ASML’s free cash flow (FCF) growth rate pinged at 61%, better than over 85% of the industry. Basically, the business is too strong and unique to ignore.

Accenture (ACN)

Headquartered in Dublin, Ireland, Accenture (NYSE:ACN) specializes in information technology services and consulting. While one of the top beneficiaries of the new normal, ACN shares peaked in late 2021. Unfortunately, this creates an unfavorable backdrop for technical comparisons. Since the beginning of the year, Accenture dropped 37% of equity value.

However, ACN makes a case for tech stocks to buy based on its combination of strong margins and fiscal stability. For the former category, Accenture’s operating margin stands at 15.2%, ranked higher than nearly 83% of its peers. Also, its net margin is 11.2%, beating out 79% of the competition. Finally, relating to the income statement, Accenture’s ROE came out to 33%, signifying a very high-quality business.

On the stability front, the company features an Altman Z-Score of 6.8. This puts the overall business in the safe zone, meaning that it has low risk of bankruptcy. For a lesser-appreciated name among tech stocks to buy on the dip, ACN brings much to the table.

Applied Materials (AMAT)

Headquartered in Santa Clara, California, Applied Materials (NASDAQ:AMAT) bills itself as the leader materials engineering solutions used to produce virtually every new chip and advanced display in the world. Though one of the most fundamentally significant tech stocks to buy, the Street has a dim view on AMAT. Since the Jan. opener, shares stumbled and gave up 46% of equity value.

To be fair, the volatility isn’t entirely undeserved. For instance, Applied Materials “cut its current-quarter sales and earnings guidance, saying that new export regulations for U.S. semiconductor technology sold in China will weigh on results,” per MarketWatch. While it’s a major distraction, it also opens up a compelling discounted opportunity.

Primarily, the company generates excellent profitability margins. For example, its net margin is 26.4%, ranked better than 88% of its rivals. Further, the strength of its financials helped spark a ROE of 55.5% and ROA of 26%. Both stats rank among the top tier of the semiconductor industry, making AMAT an attractive idea for tech stocks to buy.

Amphenol (APH)

Based in Connecticut, Amphenol (NYSE:APH) is one of the lesser-known names among tech stocks to buy. Per its corporate profile, Amphenol is a major producer of electronic and fiber optic connectors, cable and interconnect systems such as coaxial cables. Despite its under-the-radar nature, the Street hasn’t taken much of a liking to the enterprise. Since the start of the year, APH declined by 14%.

Nevertheless, Amphenol may be worth checking out for contrarian market participants. Financially, the company drives home strong stats regarding the income statement. In addition, it’s a stable entity. For instance, the company’s three-year revenue growth rate hit 9.8%, better than 69% of its peers. Its net margin is 15%, above 87% of the underlying sector. Plus, its ROE is 29%, reflecting a very high-quality business.

On the balance sheet, Amphenol features an Altman Z-Score of 5.24, putting the enterprise in the safe zone. Moving ahead in unchartered economic waters, this stability could command a premium.

Logitech (LOGI)

Specializing in computer peripheral equipment, Logitech (NASDAQ:LOGI) represents a dual threat within tech stocks to buy, catering to both business and entertainment demand. From keyboards to contoured mice to video game controllers, Logitech is a vital cog in how people interact with their various machines. Still, the market hasn’t been too thrilled with LOGI, sending shares down over 43% so far this year.

However, this negative dynamic could be due for a turnaround. Recently, Reuters reported that Logitech “reported better-than-expected profit during its latest quarter and stuck to its full-year guidance.” Prior to the disclosure, analysts worried that headwinds such as tough comparisons, a strong dollar and fragile consumer confidence would derail Logitech’s financial results. Fortunately, the red wave never materialized.

Moving forward, investors can have confidence in LOGI because of its broader relevance. As society fully returns to normal, demand for its computer peripherals should rise. Also, Logitech can handle some economic storms, based on its strong cash-to-debt ratio of nearly 11 times.

On the date of publication, Josh Enomoto 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.