Despite the stock market rebounding after the recent sell-off, many tech stocks are still far beyond the high price and trade at cheap valuations. Let’s take a look at three cheap tech stocks you can buy now.
It fell nearly 23% from its highs, Nvidia(NASDAQ: NVDA) It is a growth stock worth attracting. The company’s revenue has more than doubled in the past two years, and analysts expect the company’s revenue to grow by more than 50% this year.
NVIDIA shares are trading only at a forward price-to-earnings ratio (P/E) estimated by analysts this year, with price/income-to-growth (PEG) below 0.5. Stocks that are generally considered to be undervalued for pinning below 1, so a pin of 0.5 will certainly make Nvidia a value field.
Nvidia’s chips have become the backbone of artificial intelligence (AI) infrastructure, which has developed a broad moat through its CUDA software platform. Therefore, how NVIDIA’s stock moves forward will depend heavily on how the AI infrastructure continues to grow.
Currently, spending is still rising. The Big Three Cloud Computing Companies are all increasing their AI-related capital expenditure (CAPEX) budgets this year, while OpenAI and Soft Silver Large-scale data centers are also planned in the coming years. NVIDIA management will increase data center CAPEX by $1 trillion by 2028.
As long as AI infrastructure spending continues to increase, NVIDIA is a cheap stock that investors should buy now.
Image source: Getty Images.
Another cheap tech stock to buy now is Taiwan Semiconductor Manufacturing(NYSE: TSM)or TSMC for short. The stock also fell about 22% from its high, with a forward PE ratio of 20 times and a nail of 0.7.
Like NVIDIA, TSMC is a huge winner in AI infrastructure buildings and increasingly uses the proliferation of semiconductors in the devices we use every day, such as cars, appliances and smartphones. The company is a world-leading semiconductor contract manufacturer with a leading market share in the company’s manufacturing of advanced chips.
The company has become an indispensable partner for its customers, including Nvidia and appleGiven its technical expertise. TSMC continues to increase chip density, which means its customers can design more powerful chips with lower power consumption. This also allows TSMC to rise, thereby increasing gross profit margins.
Currently, the company is investing heavily to increase its ability to meet demand. The combination of capacity growth, pricing power and expanded profit margins makes TSMC a bargaining stock at the current level.
Its stock trading has dropped by nearly 19%, letter(NASDAQ: GOOGL)(NASDAQ: GOOG) It’s another cheap tech stock. Its first p/e is slightly higher than 18.5 times.
The company is a leader in search, accounting for 90% of the market share. At the same time, AI is a potential opportunity because its Google search engine uses the technology to improve search results, while also providing an AI overview for certain search queries. The company should have a great opportunity to eventually monetize these AI overviews with the new ad format, as it has both a large user base and an advertising partner network. In fact, the company is already the world’s largest digital advertising company, while Google and YouTube are both the largest platforms. It also offers advertising on third-party websites.
Alphabet also owns many other promising businesses and is adding the fast-growing cybersecurity company Wiz to it. Its cloud computing business, Google Cloud, is the most outstanding of these businesses, and it has seen strong growth as it can help customers develop their own AI models and applications using its Gemini Foundation model. The company has also developed its own AI chips to help improve reasoning time and reduce costs.
WIZ’s acquisition will add other ways Google Cloud distinguishes itself from its competitors by providing first-class cloud detection and response (CDR) security. Cybersecurity companies have been growing rapidly, and this should continue, especially as Alphabet offers many cross-selling opportunities.
In addition, Alphabet has always been leading the autonomous driving market as Waymo. While the hail ride service has been on its San Francisco home market for some time, it has begun to gain market share since last year. Waymo plans to enter Atlanta this year and Miami next year, and begin testing in other U.S. cities.
Finally, the company is at the forefront of quantum computing, and last year it made a major breakthrough in Willow chips. Although quantum computing is still a long way, this adds longer-term selectivity to the inventory of the alphabet.
Overall, Alphabet is one of the most attractive collections among market-leading and emerging companies.
Ever felt you missed the ship to buy the most successful stock? Then you will need to hear this.
On rare occasions, our team of analysts and experts published “Double Down” stock Suggest companies they think are about to be popular. If you are worried that you have missed the opportunity to invest, now is the best time to buy before it’s too late. Numbers talk to themselves:
Nvidia:If you invested $1,000 when you doubled in 2009,You’ll have $312,980! *
apple: If you invested $1,000 when you doubled in 2008, You will have $42,421! *
Netflix: If you invested $1,000 when you doubled in 2004, You will have $537,825! *
Currently, we are sending a “double decline” alert for three incredible companies and there may be no other chance soon.
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*Stock consultant returns as of March 24, 2025
Alphabet executive Suzanne Frey is a member of the board of directors of Motley Fool. Geoffrey Seiler has posts in the alphabet. Motley fool has a place and recommends letters, Apple, NVIDIA and Taiwan semiconductor manufacturing. Motley Fool has a disclosure policy.
3 Cheap Tech Stocks to Buy Now Originally Posted by Motley Fool
