The market has been rallying, pushing up valuations on lots of popular stocks to the point where they are no longer good buys. But there are still pockets of value to be found, even within the tech sector. This includes companies that are riding the wave of artificial intelligence (AI) growth.
Let's look at three bargain basement stocks that are ready for a bull run that you might want to consider buying now.
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1. Taiwan Semiconductor Manufacturing
Even after a strong run this year, Taiwan Semiconductor Manufacturing (TSM -2.00%) still looks inexpensive relative to the role it plays in the semiconductor ecosystem. The stock trades at a forward price-to-earnings (P/E) ratio of 26.5 times 2026 earnings estimates, which is a bargain for a company that controls nearly all of the world's most advanced chip production. Most investors focus on Nvidia when thinking about AI chips, but without TSMC's technological expertise and scale, those AI chips would not even make it to market.
While Intel has been seeing a lot of investments recently, neither it nor any other rival has shown the ability to consistently shrink node sizes while keeping high production yields like TSMC. That has turned TSMC into a critical partner for chip designers who need its support for their future chip roadmaps. It has also given the company some nice pricing power at the same time that chip demand is on the rise. Management expects AI chip demand to grow at a compound annual growth rate (CAGR) of more than 40% annually through 2028, which is significant given how large the AI chip market has already become.
Between its growth and valuation, TSMC is a bargain AI stock to buy.
2. Pinterest
Pinterest (PINS -0.41%) does not get the same attention as rival Meta Platforms when it comes to AI. However, don't let that fool you -- Pinterest is also successfully using AI to drive growth. Meanwhile, investors can scoop up the stock on the cheap, with it trading at a forward P/E of just 15 times 2026 analyst estimates. For a company that has consistently been growing its revenue at a high- to mid-teens rate and seeing operating margin expansion, that's a bargain price.
With the help of AI, Pinterest has transformed its platform from simply a digital vision board into a shoppable hub. It's using AI to power visual search and improve personalization, which makes it easier for users not just to find inspiration but then to make purchases based on that inspiration directly from its site.
Meanwhile, behind the scenes, the company's automated ad tool, Performance+, lets brands better target users and bid more effectively. It's also formed a partnerships with Instacart so users who buy items from its site can get them delivered the same day.
Pinterest also has a big opportunity to better monetize its large international user base, and it has turned to Alphabet to help reach advertisers in emerging markets. Last quarter, its average revenue per user (ARPU) grew 26% in Europe and 44% in the rest of the world. That's strong growth; however, its ARPU still trails peers by a wide margin, so there is still plenty of ARPU upside ahead.
Pinterest is a stock with a long runway for growth, trading at a discounted price.
3. GitLab
GitLab (GTLB 0.30%) may not be the first stock that comes to mind when you think of AI, but it is becoming an important player because of how much it improves developer productivity. Despite that role, the stock trades at a forward price-to-sales (P/S) ratio of under 7 times 2026 estimates, which is low for a company growing revenue close to 30% a year with gross margins near 90%.
Its Duo AI agent has been a game-changer by automating the routine work that clogs up a developer's day. Developers spend only about 20% of their time coding, so freeing up more time to write code means more projects get done, which ultimately drives demand for GitLab's platform. Early fears that AI might reduce the need for human coders have so far proven unfounded, with companies actually expanding their use of GitLab. This is evident in its net dollar retention number of 121%.
However, perhaps the most exciting part of the GitLab story is its announcement that it is shifting to a hybrid seat-plus-usage pricing model. This should let GitLab capture more value as usage scales, providing a built-in growth catalyst that is not yet fully priced in. With the AI-driven software buildout just getting started, the market seems to be overlooking GitLab's role in that expansion.
