In today's environment, the idea of looking for "cheap tech stocks" may appear unrealistic. The boom in artificial intelligence (AI) has taken the valuations of stocks like Palantir and IonQ into the stratosphere, and that can make investors feel like they've missed opportunities.
Fortunately, the rally in tech stocks seems to have affected only a few select stocks, not the sector as a whole. This means that investors can find bargains, even in AI-oriented stocks. These three companies may offer unique and potentially lucrative opportunities to investors.
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1. Alphabet
Due to a nearly 50% increase since the beginning of the year, investors may feel it's too late to buy Google parent Alphabet (GOOGL +2.89%) (GOOG +2.81%). The Magnificent Seven stock had struggled due to concerns that AI platforms, such as ChatGPT, had effectively challenged Google's longtime dominance of search.
NASDAQ: GOOGL
Key Data Points
However, Alphabet has responded with AI tools of its own, as shown by the $91 billion to $93 billion it plans to spend on capital expenditures (CapEx) this year alone.
Consequently, the company has multiple aces up its sleeve, even if it loses this battle. Today, Google Cloud is the fastest-growing part of the business and now constitutes 14% of the company's revenue in the first three quarters of 2025. This is up from 12% the previous year.
Plus, its autonomous driving platform Waymo has shown signs of early success. As it plays an increasingly prominent role in driving, it has the potential to eventually compensate for and supersede a drop in search-related ad revenue.
At a price-to-earnings (P/E) ratio of 27, it's below the S&P 500's average earnings multiple of 32. Investors still have time to capitalize on the AI-driven comeback of this tech conglomerate.
2. Meta Platforms
The other Magnificent Seven stock trading at 28 times earnings is Facebook parent Meta Platforms (META +2.04%). Apps such as Facebook, Instagram, and WhatsApp have led to over 3.5 billion people using at least one of its apps every day, about 43% of the global population.
The company's primary business, the digital ads derived from its social media ads, continues to drive company revenue growth of 22% in the first three quarters of 2025.
Nonetheless, like Alphabet, Meta is working to forge an AI-driven future. It's on track to invest $70 billion to $72 billion in CapEx this year as it works to leverage the treasure trove of personal data from its more than 3.5 billion users to train AI models.
For now, digital ads still make up about 98% of Meta's revenue, meaning that most of its AI supports that part of the business. Still, over time, AI should become Meta's growth engine when growth in the digital ad business slows down.
Despite revenue gains, net income fell 9% yearly in the first three quarters of 2025. Rising income tax expenses negated the 27% rise in operating income, and that may explain the modest stock gains of around 10% so far this year.
NASDAQ: META
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Still, as the investments begin to pay off, the rising operating income should start accruing to the bottom line, taking Meta stock higher.
3. Micron
Perhaps one of the underappreciated tech stocks in this AI boom is Micron Technology (MU +7.14%). Micron designs memory chips, which are one of the more cyclical areas of the semiconductor industry.
For decades, industry downturns often wiped out all of the stock gains earned in the up cycle. Fortunately, this has changed at the end of the previous decade with the advent of AI and the development of high-bandwidth memory (HBM). Micron is the only U.S. manufacturer of HBM and one of only three globally, making it a critical part of the AI supply chain.
The insatiable demand for AI accelerators has also spiked demand for this type of memory. In fiscal 2025 (ended Aug. 28), revenue grew by 49% yearly, bringing about an 11-fold gain in the company's net income.
This has helped take Micron stock to record highs. So far this year, the stock has increased by around 125%.
NASDAQ: MU
Key Data Points
Micron currently trades at around 30 times trailing earnings, and thanks to its growth, its forward P/E ratio is just 13. Admittedly, the low valuation is a measure of the industry's cyclicality. However, robust demand for AI chips should still make that valuation attractive, which likely bodes well for Micron's shareholders.
