Despite the market recently rebounding to hit new highs earlier this month, there are still bargains to be found in the tech space.
Let's look at five bargain stocks that could be ready for a bull run.
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1. Nvidia
Despite its dominant position in artificial intelligence (AI) infrastructure, Nvidia (NVDA 0.53%) still looks reasonably priced. While its forward price-to-earnings (P/E) ratio is 37, its forward price/earnings-to-growth (PEG) ratio is just 0.8, with PEGs below 1 indicating a stock is undervalued. That's an attractive value for a company that just grew its revenue by 69% last quarter.
While Nvidia has some of the world's most powerful chips, its strength stems from its CUDA software platform, which it launched in 2006. It pushed the software program into universities and research labs, where it became the program upon which developers learned to program graphics processing units (GPUs). That head start eventually turned into a huge network advantage, as it led to more tools and libraries being built on top of its system and more developers being trained on its platform. This has created a wide moat, with the company capturing an over 90% market share in the GPU space in the first quarter.
With AI infrastructure demand still in its early stages, Nvidia is positioned to keep delivering strong returns.
2. Advanced Micro Devices
Advanced Micro Devices (AMD 1.57%) has some of the best potential growth in the semiconductor space and a very attractive valuation -- if it can execute. Based on analysts' 2026 estimates, it has a 1-year forward P/E of 24 and a PEG of just 0.2, making it one of the cheapest growth names in the sector. While it trails Nvidia in overall GPU share by a country mile, it's carved out a promising niche in inference, where cost, power efficiency, and latency matter more than brute-force computing power.
Inference is expected to become the larger AI market over time, and AMD doesn't need to overtake Nvidia to be an AI winner. Just picking up incremental share from a much smaller base could lead to meaningful growth for the company in the years ahead. Last quarter, AMD said that a major AI model provider was running a significant percentage of its daily inference workloads on its GPUs, showing that the company can compete better in this arena.
Between this and its leadership in data center central processing units (CPUs), AMD has a big growth opportunity still in front of it. If it can capitalize on these opportunities, the stock has a lot of upside from here.
3. Taiwan Semiconductor Manufacturing
Another cheap stock in the semiconductor space is Taiwan Semiconductor Manufacturing (TSM 0.24%), which trades at 24x forward earnings with a PEG of only 0.65. While Nvidia and AMD design advanced chips, TSMC is the one that actually makes them. Advanced semiconductor manufacturing is extremely difficult, and TSMC has become the leader in the space while rivals Intel and Samsung have struggled.
At this point, TSMC's technological expertise and scale cannot be matched, which has given it strong pricing power. It's also started to expand geographically, including building fabs in the U.S. to support future demand and reduce geopolitical risks such as tariffs. As the demand for AI and other advanced chips continues to grow, TSMC is in the sweet spot as the go-to manufacturing partner of leading chip designers.
With AI servers, edge devices (such as smartphones and laptops), and autonomous vehicles all needing advanced chips and seeing strong demand, TSMC is in a great position moving forward.
4. Alphabet
With a forward P/E of 18 and a PEG ratio below 1, Alphabet's (GOOGL 1.46%) (GOOG 1.47%) stock is cheap, especially for a company with strong positions in search, video streaming, cloud computing, and autonomous driving. The possibility that AI will disrupt Google Search has weighed on the stock, but the facts suggest otherwise.
Search isn't going anywhere. AI queries cost more to run, and Alphabet has a distribution edge with its market-leading Android smartphone operating system and Chrome browser. It also owns one of the world's most effective and far-reaching digital ad platforms, with a strong position in local markets. Those advantages can also be extended to its AI offerings, and the company is combining search and AI with its new AI mode.
Meanwhile, Google Cloud is hitting its stride. Revenue rose 28% year over year last quarter while operating income jumped 142%. Its custom tensor processing units (TPUs) are giving it a cost edge on inference workloads, and its new Ironwood chip should only build on that. Waymo, meanwhile, is quickly expanding its robotaxi business to new cities, and the Willow chip was a big move forward in quantum computing (one might even say it was a "quantum leap").
Alphabet is a lot more than search, and it has a lot of growth opportunities ahead.
Alibaba
Alibaba (BABA 0.07%) is one of the cheapest AI stocks around, trading at just 11x forward earnings with over 30% of its market cap in cash and investments. Sentiment around Chinese tech stocks has been improving, as have Alibaba's fundamentals. Its cloud segment has now seen AI-related revenue more than double for seven straight quarters. Apple's selection of its Qwen model to power Apple Intelligence in China could also become a nice growth driver.
Alibaba's e-commerce business has been recovering. Taobao and Tmall are stabilizing, and Alibaba is monetizing the platforms better through software fees and a new AI marketing tool. Its 88VIP program continues to grow, and new initiatives like one-hour delivery and embedded Taobao links in Rednote posts could help drive growth.
The company's money-losing international segment (AIDC) is another potential catalyst. If it turns profitable as expected, it would be a nice boost to Alibaba's earnings.
Despite a solid turnaround, Alibaba still trades at a third of Amazon's P/E multiple, giving it strong potential upside in the years ahead.
