Despite the market trading near all-time highs, there are still undervalued stocks to be found, including in the tech sector. Let's look at three bargain tech stocks you can buy and hold right now.
1. Alphabet
NASDAQ: GOOGL
Key Data Points
Trading at a forward price-to-earnings (P/E) ratio under 24 times 2026 analyst consensus earnings estimates, Alphabet (GOOG +3.60%) (GOOGL +3.62%) is one of the cheapest mega-cap stocks around. However, it is arguably the best positioned for the next phase of artificial intelligence (AI) growth.
The engine of Alphabet's AI ambitions is Gemini, which is one of today's premier foundational large language models (LLMs). It powers its fast-growing cloud computing unit, Google Cloud, where customers use it along with its Vertex AI software to create their own AI models and apps. Alphabet has also infused Gemini throughout its other businesses, including Google search, where it acts as the brains behind its AI features, such as AI Overviews and AI Mode.
Meanwhile, Alphabet has several huge advantages as search and AI chatbots meld into one. The first is distribution, as through its Chrome, Android, and a revenue-sharing agreement with Apple, it is the default gateway to the internet for most people. It also has decades of search data that it can use to both feed its models and monetize queries better. And finally, it operates one of the most trusted and effective ad networks on the planet.
Google Cloud, meanwhile, has become its biggest growth driver, with revenue soaring 32% last quarter and operating income more than doubling. The company has arguably the most advanced custom AI chips, which help give it a cost and performance advantage. This is likely to become even more important as the market starts to head more toward inference.
At the same time, the company has exciting emerging bets with robotaxis and quantum computing, which could be huge growth drivers down the road. Given all the growth levers Alphabet has, it looks very undervalued.
2. UiPath
NYSE: PATH
Key Data Points
With a price-to-sales (P/S) multiple of under 5 times 2026 analyst estimates, UiPath (PATH +5.52%) looks undervalued for a company with over 80% gross margins that appears to be on the verge of seeing revenue reaccelerate. Growth started to slow as AI went mainstream, as companies started to question the future role of robotic process automation (RPA), which uses software bots to handle repetitive business tasks.
However, UiPath's foundation in RPA sets the company up well to become an agentic AI orchestration and automation tool. Given the cost to run AI agents, cheaper bots still have a place, and UiPath is looking to manage how agents, bots, and humans can all interact together to get the best results.
The company recently took a big step in its strategy, with the announcement of several collaborations, including with AI heavyweights Nvidia, OpenAI, and Alphabet. However, its most intriguing collaboration could be with data warehousing company Snowflake, where it will connect with Snowflake's Cortex AI system to help turn customer insights into real-time automated actions using their own data. That's a strong valuation proposition, which should help drive the future.
UiPath's core business has already started to improve, with its annual recurring revenue (ARR) rising 11% last quarter and net revenue retention stabilizing at 108%. Meanwhile, adjusted EPS surged, helped by recent cost cuts.
Importantly, customers have already started building AI agents on its platform, and almost all new customers are choosing to use its RPA and AI products together. If these new collaborations can help revenue accelerate, the stock has a lot of upside ahead.
Image source: Getty Images.
3. GitLab
NASDAQ: GTLB
Key Data Points
GitLab (GTLB 0.04%) is another tech company trading at a discount with a forward P/S multiple of around 7 times, despite it consistently producing revenue growth above 25%. That valuation discount has apparently attracted some potential suitors, including Datadog. Meanwhile, its solution would also fit in nicely with a cloud computing company like Alphabet to compete against Microsoft's GitHub.
Outside of a potential acquisition, GitLab's biggest opportunity is a shift in pricing model. The company has historically used a seat-based pricing model, but it has started to add more value as it has transitioned from solely being a DevSecOps platform into a complete software development environment that also has AI tools that can help developers write code and reduce daily repetitive tasks.
It has just recently started moving to a hybrid seat-plus-usage pricing model. This should spur growth as the company will benefit as customers use its solutions more, while it also helps protect it if AI efficiency gains eventually lead to the need for fewer coders. Interestingly, Datadog, which has been rumored to be one of the companies most interested in acquiring GitLab, employs a usage model, so it likely sees the value this shift can bring.
Whether or not GitLab gets acquired, though, the stock is cheap, and it could have a lot of upside ahead.
