These three tech stocks are cheap and have plenty of growth ahead.
Markets are back near all-time highs, but that doesn’t mean that bargains can’t still be found, even in the tech sector. There are still tech stocks trading at attractive valuations with strong long-term growth runways ahead of them.
Let’s look at three to buy right now.
Taiwan Semiconductor Manufacturing
Even though its stock is up about 35% this year, Taiwan Semiconductor Manufacturing (TSM -1.91%) still trades at an attractive valuation, with a forward price-to-earnings (P/E) ratio of under 24 times 2026 analyst earnings estimates. This is a bargain for a company that is arguably the most important one in the semiconductor space. Without its technological expertise and scale, there would be no artificial intelligence (AI) infrastructure boom.
TSMC manufactures almost all of the world’s most advanced chips, as competitors have not been able to match its ability to consistently produce chips at smaller nodes with high yields. For advanced chip technology to advance, manufacturers need to consistently shrink node sizes, which is the number of transistors that can fit on a chip. This allows new generations of advanced chips, like graphics processing units (GPUs), to become more powerful and energy-efficient.
TSMC is the only foundry that’s been able to continually shrink nodes while maintaining high yields. That has made it the go-to partner for chipmakers and a critical cog in the semiconductor value chain. It’s also given it strong pricing power and a long runway of growth. Management expects AI chip demand to grow at a more than 40% compound annual growth rate (CAGR) through 2028.
Between its growth and valuation, TSMC looks like one of the smartest ways to invest in AI right now.
Alphabet
Despite its strong run this year, Alphabet (GOOGL -1.33%) (GOOG -1.15%) is still cheap at about 24 times 2026 earnings estimates. That’s a discount to most of its mega-cap peers, despite its business being more diversified and arguably more durable.
The market is worried that AI would eat into Google Search, but search revenue growth has actually accelerated as Alphabet has rolled out new AI features like AI Overviews and Circle to Search. These tools are driving more engagement and helping the company monetize even more queries.
The recent Department of Justice decision also removed a major overhang, letting Alphabet keep its search deal with Apple and retain control of Chrome and Android. That allows the company to keep its huge distribution edge. Chrome still dominates the browser market, and Android runs nearly three-quarters of smartphones, which means most users continue to access the internet through Google by default.
Alphabet also has one of the fastest-growing cloud computing platforms, with Google Cloud revenue up 32% last quarter and profits more than doubling. Cloud demand remains strong as companies continue to rush to build AI tools and models on cloud infrastructure. This is lifting all boats in the space, but Alphabet has an advantage with its own custom AI chips and Gemini models, which help with both performance and cost.
Between search, cloud, and emerging bets like its Waymo robotaxi business, Alphabet has multiple ways to keep growing, and the stock’s current valuation doesn’t reflect that upside.
Image source: Getty Images.
Pinterest (PINS 1.26%) is another bargain stock in the tech space that has been benefiting from AI. The stock trades under 16 times 2026 earnings, which is very cheap for a company growing revenue in the mid-teens and expanding operating margins. The photo-sharing site has been transformed under CEO Bill Ready, becoming far more shoppable and much more attractive to advertisers as a result.
The company has built its own multimodal AI model, which it is using to power visual search and help personalize recommendations. This is giving users a better experience and helping them find things they want to buy more easily. Advertisers are also seeing better results thanks to automation tools like Performance+, which handle campaign creation, targeting, and bidding.
That is helping Pinterest grow average revenue per user (ARPU), where it has historically lagged. Meanwhile, a partnership with Alphabet is helping it better monetize emerging market users.
Last quarter, its international ARPU grew 26% in Europe and 44% in the rest of the world, but the company still has a long way to go until it closes the gap with its peers. Its site has also been attracting new users, with monthly active users also growing 11% to 578 million, led by strength in emerging markets.
The company also has a partnership with Amazon and a new one with Instacart that is making it easier for users to shop directly from its site.
Overall, Pinterest looks poised for several more years of strong growth, and the current valuation allows plenty of room for multiple expansion as those gains show up in earnings.
Geoffrey Seiler has positions in Alphabet and Pinterest. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Pinterest, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.