With the market near all-time highs and tech stocks leading the way, you may think there aren't any growth stocks still trading at attractive valuations. However, that is not the case, and even some companies that have been helping lead the charge still look like bargains.
Let's look at two market leaders to buy today while they are still bargains.
1. Alphabet
For a company with its kind of dominance, Alphabet's (GOOGL +2.73%) (GOOG +2.67%) valuation looks unusually low. The stock trades at a forward price-to-earnings (P/E) ratio of less than 24 times expected 2026 earnings, which is cheaper than most of its mega-cap tech peers even though it's arguably the best-positioned artificial intelligence (AI) company in the world.
Image source: Getty Images.
Alphabet has several advantages, but one of the biggest is that it has a complete AI stack built around its Gemini model and its own custom AI chips known as tensor processing units (TPUs). Together, they power everything from Google Search to Google Cloud, and they also cut costs by letting the company handle more of its own computing in-house.
Search is still Alphabet's largest business, and it's evolving fast, melding together with AI. The company has been weaving AI deeper into search with new features like Lens and Circle to Search, which let users point their cameras at something or draw a circle on their screen to get results instantly. Meanwhile, AI Overviews and AI Mode bring chatbot features to search, while its stand-alone Gemini app is seeing strong adoption, helped by creative tools like Nano Banana.
NASDAQ: GOOGL
Key Data Points
Alphabet's biggest advantages in this area are data, distribution, and a massive ad network that advertisers know gets results. It has decades of user behavior across its products, plus YouTube's massive video catalog. That combination feeds its AI models and helps it monetize traffic better than any other company. At the same time, it's the access point to the internet for most people, given its ownership of its Chrome browser, Android smartphone OS, and revenue-sharing agreement with Apple to be the default search engine for its products.
Meanwhile, its cloud computing unit, Google Cloud, is quickly becoming its biggest growth driver. Revenue climbed 32% year over year last quarter, while operating income more than doubled. Demand for AI-related computing remains robust, and Alphabet's vertical integration is a big advantage.
In addition, Alphabet is planting seeds for future growth. Waymo's robotaxi business is now operating in multiple cities, and its quantum computing unit continues to make strides in error reduction. These smaller bets won't move the needle yet, but they add long-term upside. Given all this, the stock looks far too cheap for what's ahead.
2. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (TSM +1.46%) is one of the most important players enabling AI, yet the stock is still attractively valued, trading around 23.5 times 2026 earnings estimates. Given its growth outlook and unmatched position in the semiconductor industry, that valuation is a bargain.
Simply put, there's no AI without TSMC. It manufactures nearly all of the world's most advanced chips, including Nvidia's graphics processing units (GPUs) and Alphabet's TPUs, and it's the only foundry that has shown that it can consistently deliver high yields on the leading-edge nodes.
NYSE: TSM
Key Data Points
About three-quarters of TSMC's revenue now comes from chips produced at 7 nanometers or smaller, and its 3-nanometer line already accounts for almost a quarter of its wafer revenue. Next year, it's set to begin 2-nanometer production while also working on 1.6-nanometer technology.
That steady ability to shrink nodes while maintaining yields keeps it far ahead of rivals like Samsung. The company's latest quarterly results showed just how strong its position is, with revenue climbing 41% year over year to $33.1 billion and earnings per ADR rising 51%.
TSMC expects AI-related chip demand to grow at a mid-40% compound annual growth (CAGR) rate through 2029. Given that it works closely with all the leading chip designers to help them grow and secure capacity, it should have some of the best visibility in the industry.
TSMC is building out new fabs to help chip companies keep up with demand, including new facilities in the U.S. that will produce its next-generation chips. This will come with higher costs but should also help strengthen relationships with key American customers. Meanwhile, it's using its position to raise prices, something it can do easily because no other foundry can match its consistency.
TSMC is more than just a chip manufacturer; it's a vital cog in the semiconductor ecosystem and a close partner to its chip-designer customers. While chip demand continues to soar, the stock looks too cheap at current levels to ignore.
