While the stock market has rallied from its lows earlier this year, there are still nice bargains in the tech space. Let's look at five bargain tech stocks ready for a bull run.
1. Alphabet
Trading at a forward price-to-earnings (P/E) ratio of below 16.5x analyst 2025 estimates, Alphabet (GOOGL 0.41%) (GOOG 0.41%) is the cheapest of the megacap tech stocks.
While best known for its Google search engine, Alphabet has a solid collection of market-leading and emerging businesses. Its YouTube streaming service is the most-watched in the world and the fourth-largest digital advertising platform. Meanwhile, its fast-growing Google Cloud service is the third-largest cloud computing company on the planet. On the emerging technology side, the company has jumped out to the lead in autonomous driving with its Waymo robotaxi service, while it's also at the forefront of quantum computing with its Willow chip.
While there is some worry about the impact of artificial intelligence (AI) on its search business, Google has a strong offering through its Gemini model. In addition, the company has big distribution and ad network advantages. With its new AI mode, users also don't have to even leave its popular Chrome browser and can conveniently toggle between AI, search, and news to get the answers they are seeking. Expect Alphabet to be an AI winner, not an AI loser, setting up the stock for solid gains in the years ahead.
Image source: Getty Images.
2. Salesforce
Software-as-as-service (SaaS) stocks historically trade at premium valuations due to their recurring revenue models and strong visibility. However, with a forward P/E of around 20.5x and a price/earnings-to-growth (PEG) ratio of 0.5 -- with PEGs below 1 indicating a stock is undervalued -- Salesforce (CRM 0.25%) currently finds its stock on the clearance rack.
Despite its low valuation, Salesforce has strong growth opportunities ahead. It is looking to become a leader in agentic AI through its Agentforce platform, where customers can create AI agents that will complete tasks with little human intervention. Even though the product has only been available for two quarters, Salesforce already has more than 4,000 paying customers and many more in pilots. Its Data Cloud offering, which helps customers unify their data into a single source, has also seen huge growth.
The company's AI agent strategy is already evolving, as it is looking to tightly integrate Agentforce and Data Cloud with its apps and metadata to help lead the way in digital labor. In order to help increase adoption and improve customer satisfaction, the company also recently introduced a new flexible Agentforce consumption-based pricing model that is more aligned with outcomes. If Salesforce can become an AI agent leader, then the stock should have strong upside from here.
3. Alibaba
Trading at a forward P/E of just 10 times and a cash-rich balance sheet, Alibaba (BABA 1.02%) is one of the cheapest stocks around. The company is both an e-commerce and cloud computing leader in China, and it has been seeing strong AI momentum. Earlier this year, it announced that Apple would use its AI models to help power its Apple Intelligence features in China, and it just launched new Qwen3 AI models that are compatible with Apple devices.
At the same time, the company has done a great job turning around its core e-commerce platforms by first investing to reaccelerate its gross merchandise volume (GMV) growth and then better monetizing that higher GMV through a small software fee and its AI-powered marketing tool, Quanzhantui.
It's also seen strong momentum in its Cloud Intelligence segment. Last quarter, the segment's revenue jumped by 18%, while AI-related revenue more than doubled for the seventh straight quarter. In addition, the company expects its international commerce segment (AIDC) to turn profitable within the next year, which would be a big earnings driver.
4. Advanced Micro Devices
With a forward P/E of 23 times and a PEG of just 0.2 times, Advanced Micro Devices (AMD 1.35%) is one of the cheapest chip stocks out there. The company has been seeing strong revenue growth and become the market leader in central processing units (CPUs) in the data center arena.
That said, the company's biggest opportunity moving forward is with its graphics processing units (GPUs). While the company is a distant second behind market-leader Nvidia, it has carved out a nice niche with AI inference, which isn't as technically demanding as training and where costs become more important. This is key for AMD, as the inference market is eventually expected to become the much bigger market. If it can only take a little share away from Nvidia in this area, AMD should see very strong growth ahead.
5. Taiwan Semiconductor Manufacturing
With a forward P/E of around 19 times and a PEG near 1, Taiwan Semiconductor Manufacturing (TSM 0.82%) remains attractively valued. The company is the leading semiconductor manufacturing contractor in the world, making chips for companies like Nvidia, AMD, and Apple.
Semiconductor manufacturing is a difficult business, and with its main competitors Intel and Samsung struggling, TSMC has turned into the primary manufacturer of advanced chips. This has given it strong pricing power and helped it become an invaluable partner to chip designers.
As such, TSMC is one of the best-positioned companies to continue to benefit from increasing AI infrastructure spending. It also has a big future opportunity with autonomous driving and robotaxis, as these cars will require a lot of advanced chips, as well.
