Technology has been the market's top-performing sector over the past five years, and it remains one of the most reliable engines of long-term growth. However, not every strong company in the space is performing well right now -- some well-established names have seen their stock prices decline despite solid fundamentals. For investors, that disconnect can create opportunity.
Here are three tech stocks that appear surprisingly affordable today and may be poised for a rebound.
1. Alphabet
Tech giant Alphabet (GOOG -0.42%) (GOOGL -0.50%) is down 7% in 2025 as investors question whether the company's dominance in search is in jeopardy. The concern stems from Google's global search market share consistently dipping below 90% for the first time since 2015, according to web analytics tool StatCounter.
Despite those concerns and the possibility that Alphabet is behind in the artificial intelligence (AI) arms race, the company continues to deliver on the top and bottom lines. Specifically, Alphabet's Q1 2025 revenue grew 12% year over year to $90 billion, and its free cash flow increased 12.6% to $19 billion. Notably, the increase in free cash flow includes Alphabet's capital expenditures -- the expense for technical infrastructure to support AI products and services -- which jumped to $17.2 billion in Q1 2025, compared to $12 billion in the same quarter a year earlier.
Image source: Getty Images.
At the time of this writing, Alphabet trades at 29.4 times free cash flow -- the lowest multiple among the Magnificent Seven. Its valuation could signal skepticism from the market, or it might mean the stock is undervalued. While that gap plays out, Alphabet continues to return capital to shareholders with a $0.21 quarterly dividend (yielding 0.5% annually) and aggressive share buybacks. Management has cut shares outstanding by 11% over the past five years and just approved another $70 billion for repurchases.
GOOGL Price to Free Cash Flow data by YCharts
2. Arista Networks
Arista Networks (ANET -5.71%) is a computer networking company focusing on software-driven cloud networking solutions. It has been a tech darling over the past five years, with its stock up approximately 600%. However, in 2025, its stock is down 13%, partly because one of its enterprise customers -- specifically Meta Platforms -- reduced its spending with Arista. Meta was responsible for approximately 21% of Arista's revenue in 2023, decreasing to around 15% in 2024.
Arista's recent pullback hasn't stopped the company from delivering strong financial results. In its most recent quarter, revenue increased 16% year over year to $1.57 billion, with management citing continued momentum in demand for cloud and AI networking. Free cash flow also remained robust at $725 million, up 25% from the same quarter in the previous year.
Despite concerns about customer concentration, Arista raised its full-year guidance, projecting revenue between $6.5 billion and $6.6 billion for fiscal 2025, up from its previous range of $6.4 billion to $6.5 billion. This reflects management's confidence in broader demand trends and its ability to win new business beyond a few key clients.
Another encouraging sign for investors: Arista appears to be taking steps to address its long-standing concerns about share dilution. Since its initial public offering in 2014, the company's share count has increased by 23.5%. However, recent actions suggest a shift. In 2025, Arista began repurchasing shares, and its strong balance sheet, anchored by $8.2 billion in net cash, gives it ample flexibility to continue to increase shareholder value in the future.
ANET Price to Free Cash Flow data by YCharts
Even after years of outperformance, Arista stock may finally be reasonably priced. The company currently trades at 32.7 times free cash flow, significantly below its three-year median multiple of 45.1. That valuation discount, combined with solid growth, a fortress-like balance sheet, and signs of more shareholder-friendly capital allocation, could make this dip a rare opportunity for long-term investors.
3. Zoom Communications
Pandemic darling Zoom Communications (ZM 0.03%) is down 86% from its high in late 2020 and has declined by nearly 5% in 2025. Investors have soured on the leading video conferencing company as its growth has stalled.
In its fiscal 2026's first quarter, Zoom generated $1.2 billion in revenue, up 2.9% year over year, and saw a decline in free cash flow to $463.4 million, compared to $569.7 million in its fiscal Q1 2025. Management attributed the decline in free cash flow to the timing of tax payments and projects, indicating that full-year fiscal 2026 free cash flow will be in the range of $1.68 billion to $1.72 billion, below the full-year comparison of $1.8 billion for fiscal 2025.
Long-term, the company hopes its phone product, Zoom Phone, will spur new growth, with the segment seeing revenue grow in the "mid teens" in fiscal Q1 2026 compared to fiscal Q1 2025. For its fiscal 2026, management is guiding for total revenue to be between $4.80 billion and $4.81 billion, representing a measly 3% year-over-year increase.
ZM Price to Free Cash Flow data by YCharts
Zoom has an immaculate balance sheet with $7.8 billion in net cash, and management may finally be addressing its share dilution problem; its share count has decreased by nearly 2% over the past year. As of April 30, it had $1.2 billion remaining in its authorized share repurchase program. Considering the stock has a low valuation of 14.3 times free cash flow, it offers a compelling entry point, especially if the company delivers even modest growth from here.
