What are five undervalued tech stocks?

Kyndryl, Qualcomm, Lumen, AT&T, and Himax are five undervalued tech stocks.

Can cheap tech stocks be part of a long-term investment strategy?

Cheap tech stocks can be a good part of a long-term investment strategy, but investors should understand that even stocks that appear cheap by various metrics can carry substantial risk.

Do cheap tech stocks pay dividends?

Some cheap tech stocks pay dividends. Tech companies may opt to pay dividends to reward shareholders, or because returning cash directly to shareholders appears to be a better use of excess capital than pouring more money into growth bets.

How much should I invest in cheap tech stocks?

Investors should weigh their investment in cheap stocks in line with their personal risk tolerance and financial situation. While investing in companies trading at seemingly opportunistic multiples can be a path to substantial returns, these stocks can still experience significant valuation pullbacks, resulting in big losses for investors.

Cheap Tech Stocks for 2026 and How to Invest

These stocks can be considered a deal in the technology sector. Find out if these cheap tech stocks are right for you.

By Keith Noonan – Updated May 13, 2026 at 4:47 AM EST | Fact-checked by Frank Bass

Key Points

Cheap tech stocks may provide significant long-term investment returns.
Technology's influence on various industries makes it a prime investment area.
Alphabet and AT&T show potential for growth with their strong market positions.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Kyndryl (NYSE:KD)	$2.7 billion	0.00%	IT Services
Applied Materials (NASDAQ:AMAT)	$355.9 billion	0.43%	Semiconductors and Semiconductor Equipment
Alphabet (NASDAQ:GOOGL)	$4.7 trillion	0.22%	Interactive Media and Services
AT&T (NYSE:T)	$172.9 billion	4.46%	Diversified Telecommunication Services
Himax Technologies (NASDAQ:HIMX)	$3.6 billion	1.79%	Semiconductors and Semiconductor Equipment
Qualcomm (NASDAQ:QCOM)	$246.0 billion	1.53%	Semiconductors and Semiconductor Equipment
Lumen Technologies (NYSE:LUMN)	$11.2 billion	0.00%	Diversified Telecommunication Services

Data as of May 28, 2026. Showing 7 of 7 total entries.

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NYSE: KD

Kyndryl

Today's Change

(-2.16%) $-0.26

Current Price

$11.77

Key Data Points

Market Cap

$2.7B

Day's Range

$11.61 - $12.07

52wk Range

$10.10 - $44.20

Volume

3.7M

Avg Vol

3.9M

Gross Margin

21.82%

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NASDAQ: AMAT

Applied Materials

Today's Change

(-1.45%) $-6.61

Current Price

$448.28

Key Data Points

Market Cap

$356B

Day's Range

$441.19 - $462.30

52wk Range

$153.47 - $462.40

Volume

232.2K

Avg Vol

6.7M

Gross Margin

48.96%

Dividend Yield

0.43%

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Applied Materials (AMAT -1.45%) provides the equipment needed to manufacture semiconductors. Many chip companies are cyclical, with revenue and profits ebbing and flowing with consumer and business demand.

However, Applied Materials has a much more stable growth business model. New chip fabrication plants and expansions take years of planning, and their equipment requires ongoing service -- a source of revenue for Applied, as well.

The company should be able to continue its growth in line with the broader microchip manufacturing industry and increasing demand for network-connected industrial equipment, electric vehicles, and artificial intelligence (AI) technologies. Applied Materials consistently generates high operating profit margins and returns all of its free cash flow to shareholders via a dividend and share repurchases.

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3. Alphabet

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NASDAQ: GOOGL

Alphabet

Today's Change

(-0.01%) $-0.05

Current Price

$388.83

Key Data Points

Market Cap

$4.7T

Day's Range

$385.90 - $393.88

52wk Range

$162.00 - $408.61

Volume

23.1M

Avg Vol

28.1M

Gross Margin

60.43%

Dividend Yield

0.22%

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One of the FAANG stocks (large tech companies with big competitive advantages), Alphabet (GOOG +0.02%) (GOOGL +0.03%) has posted big gains over the last year but could still offer appealing value. Alphabet's Google search business has emerged from pressures facing the overall digital advertising industry, and the company has returned to generating operating profit margins above 30%. It uses its profits to fund even higher-growth businesses, such as YouTube and Google Cloud, as well as emerging technologies, such as its self-driving car subsidiary Waymo.

Alphabet also had one of the largest cash and short-term investment (net of debt) balances of any public company at roughly $80 billion as of the end of 2025. When paired with its strong product suite and long-term expansion potential, there's a lot to like about Alphabet -- especially with shares trading at 27 times one-year forward expected earnings.

4. AT&T

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NYSE: T

AT&T

Today's Change

(-0.52%) $-0.13

Current Price

$24.89

Key Data Points

Market Cap

$173B

Day's Range

$24.88 - $25.35

52wk Range

$22.95 - $29.79

Volume

35.9M

Avg Vol

39.2M

Gross Margin

43.08%

Dividend Yield

4.46%

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NASDAQ: HIMX

Himax Technologies

Today's Change

(-3.64%) $-0.78

Current Price

$20.65

Key Data Points

Market Cap

$3.6B

Day's Range

$20.04 - $21.40

52wk Range

$6.85 - $22.44

Volume

2.8M

Avg Vol

4.7M

Gross Margin

30.55%

Dividend Yield

1.79%

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Himax Technologies (HIMX -3.64%) is a designer of display-driver and image sensor chips. The company's technologies are used to regulate the colors displayed by screen pixels, capture visual data for machine vision applications, and facilitate other display and sensing functions. Its designs are used in televisions, automotive displays, and a range of other hardware devices.

Himax is a cyclical stock, and its business performance has tended to fluctuate significantly with the launch of new technologies and demand trends in its key end markets. On the other hand, increasing demand for automotive display and visual sensing technologies looks poised to power strong performance for the company.

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6. Qualcomm

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NASDAQ: QCOM

Qualcomm

Today's Change

(-6.23%) $-15.51

Current Price

$233.31

Key Data Points

Market Cap

$246B

Day's Range

$224.18 - $248.00

52wk Range

$121.99 - $258.00

Volume

1.1M

Avg Vol

19M

Gross Margin

54.80%

Dividend Yield

1.53%

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Almost every smartphone on the planet contains some sort of Qualcomm (QCOM -6.23%) chip. As mobility expands to encompass other devices (cars, smart-home devices, industrial equipment, etc.), Qualcomm is finding new avenues for growth. Yet largely due to a widespread belief that Apple (AAPL +0.87%) will eventually completely part ways with Qualcomm and use its own mobile chips for the iPhone and iPad, Qualcomm trades for less than many of its semiconductor industry peers.

In the spring of 2026, Qualcomm's stock was valued at just 19.5 times expected earnings for the year. But over the next few years, the company expects to see much more growth from new mobility and AI chip designs. Along the way, shareholders potentially will be treated to a modest dividend yield and share repurchases to sweeten the deal.

7. Lumen Technologies

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NYSE: LUMN

Lumen Technologies

Today's Change

(6.88%) $0.70

Current Price

$10.87

Key Data Points

Market Cap

$11B

Day's Range

$9.76 - $10.96

52wk Range

$3.37 - $11.95

Volume

17.7M

Avg Vol

13.2M

Gross Margin

25.03%

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Cheap tech stocks FAQ

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About the Author

Keith Noonan is a contributing writer at The Motley Fool covering technology, consumer goods, and other sectors. He holds a bachelor’s degree in English from Boston College.

TMFNoons

Keith Noonan has positions in Himax Technologies. The Motley Fool has positions in and recommends Alphabet, Apple, Applied Materials, Himax Technologies, Kyndryl, Meta Platforms, Microsoft, Palantir Technologies, Qualcomm, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.

Cheap Tech Stocks for 2026 and How to Invest

These stocks can be considered a deal in the technology sector. Find out if these cheap tech stocks are right for you.

Key Points

Key Data Points

Key Data Points

3. Alphabet

Key Data Points

4. AT&T

Key Data Points

Key Data Points

6. Qualcomm

Key Data Points

7. Lumen Technologies

Key Data Points

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Key Data Points

Cheap tech stocks FAQ

What are five undervalued tech stocks?

Can cheap tech stocks be part of a long-term investment strategy?

Do cheap tech stocks pay dividends?

How much should I invest in cheap tech stocks?

Seven undervalued tech stocks to consider

1. Kyndryl Holdings

3. Alphabet

6. Qualcomm

Benefits and risks of investing in cheap tech stocks

Why invest in cheap tech stocks

What to look for in undervalued tech stocks

Related investing topics

FAQ

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

2. Applied Materials

4. AT&T

5. Himax Technologies

7. Lumen Technologies

How to buy cheap tech stocks