What are five undervalued tech stocks?

Kyndryl, Qualcomm, Lumen, AT&T, and Micron 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 investing more in growth bets.

How much should I invest in cheap tech stocks?

Investors should weigh their investment in cheap stocks against 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 Aug 24, 2026 at 3:13 PM EST | Fact-checked by Frank Bass

Key Points

Cheap tech stocks can provide significant long-term gains.
Micron and Qualcomm offer growth from AI and mobility technologies.
Alphabet uses profits for high-growth sectors like YouTube and Google Cloud.

Cheap tech stocks offer investors the potential to score massive long-term returns. The technology sector has played a leading role in powering the market's gains over the past couple of decades. New hardware, software, and services have driven changes in business and everyday life. Tech's ability to shape and influence almost every industry under the sun means the sector remains one of the best starting places for investors seeking big gains.

Seven undervalued tech stocks to consider

Following bouts of market volatility over the last several years, even some otherwise high-flying growth stocks might be considered a great long-term deal right now. And for many older and slower-growing tech stocks, valuations continue to look attractive. Here are seven companies with "cheap" tech stocks that could deliver strong returns over the long term:

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Kyndryl (NYSE:KD)	$2.9 billion	0.00%	IT Services
Micron Technology (NASDAQ:MU)	$1.1 trillion	0.06%	Semiconductors and Semiconductor Equipment
Alphabet (NASDAQ:GOOGL)	$4.2 trillion	0.25%	Interactive Media and Services
AT&T (NYSE:T)	$177.4 billion	4.29%	Diversified Telecommunication Services
Salesforce (NYSE:CRM)	$212.0 billion	0.66%	Software
Qualcomm (NASDAQ:QCOM)	$179.0 billion	2.11%	Semiconductors and Semiconductor Equipment
Lumen Technologies (NYSE:LUMN)	$6.4 billion	0.00%	Diversified Telecommunication Services

Data as of Sep 1, 2026. Showing 7 of 7 total entries.

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1. Kyndryl Holdings

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NYSE: KD

Kyndryl

Premium Feature

Moneyball Superscore

54/100

Today's Change

(-1.26%) $-0.17

Current Price

$13.28

Key Data Points

Market Cap

$2.9B

Day's Range

$12.93 - $13.43

52wk Range

$10.10 - $33.90

Volume

984.8K

Avg Vol

4.2M

Gross Margin

21.85%

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NASDAQ: MU

Micron Technology

Premium Feature

Moneyball Superscore

91/100

Today's Change

(0.85%) $8.19

Current Price

$966.92

Key Data Points

Market Cap

$1.1T

Day's Range

$929.63 - $967.10

52wk Range

$114.25 - $1255.00

Volume

11.6M

Avg Vol

45M

Gross Margin

72.60%

Dividend Yield

0.06%

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Micron Technology (MU +0.86%) stock has seen incredible valuation gains thanks to surging demand for memory chips used to power artificial intelligence (AI) technologies. With such massive share price gains, it's not unreasonable to question how much upside the stock still offers. On the other hand, Micron appears cheap across multiple valuation metrics.

Micron is valued at just 13 times this year's expected earnings -- a level that suggests the stock could be significantly undervalued in light of the business's stellar earnings growth in 2026 thus far and the virtual certainty that strong performance will continue through the year. Micron's forward price-to-earnings-growth (PEG) ratio is also far below 1, which can be a good indicator that a stock is undervalued.

Micron trades at low valuation multiples relative to its business performance due to uncertainty about the memory chip market outlook. The memory business has historically been cyclical, and investors are concerned that competition from Chinese rivals could erode pricing power. On the other hand, high demand for memory chips has allowed Micron to book long-term contracts with customers -- so there's a good chance that strong performance will continue for years to come.

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3. Alphabet

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NASDAQ: GOOGL

Alphabet

Premium Feature

Moneyball Superscore

92/100

Today's Change

(-0.99%) $-3.35

Current Price

$336.00

Key Data Points

Market Cap

$4.2T

Day's Range

$333.05 - $337.20

52wk Range

$206.19 - $408.61

Volume

7.9M

Avg Vol

31.6M

Gross Margin

60.94%

Dividend Yield

0.25%

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One of the FAANG stocks (large tech companies with significant competitive advantages), Alphabet (GOOG -0.77%) (GOOGL -0.99%) has posted strong 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 as a buy-and-hold investment-- especially with shares trading at roughly 23 times next year's expected earnings and plenty of room for profit expansion over the long haul.

4. AT&T

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NYSE: T

AT&T

Premium Feature

Moneyball Superscore

67/100

Today's Change

(0.85%) $0.22

Current Price

$26.11

Key Data Points

Market Cap

$177B

Day's Range

$26.01 - $26.32

52wk Range

$19.89 - $29.79

Volume

9.1M

Avg Vol

61.3M

Gross Margin

43.71%

Dividend Yield

4.29%

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AT&T's (T +0.87%) big vision to build a multimedia empire capable of complementing its telecommunications business didn't turn out as planned. In 2021, the company spun off its DirecTV satellite television business. The following year, the telecom giant spun off the Time Warner division that it had paid $85 billion to acquire, resulting in a merger that created Warner Bros. Discovery (WBD -0.19%). Although the move reduced cash-generating capacity and led to a dividend cut, the company is now leaner and more efficient, and it still offers a strong dividend profile.

AT&T is back to focusing on telecommunications services, and it's likely in the early stages of benefiting from this shift, driving growth for its 5G and fiber internet businesses. Mobile connectivity and high-performance internet are increasingly central to business and everyday life, and digital connectivity will likely become even more important through the next decade and beyond. AT&T stock boasts a roughly 4.5% yield, and shares trade at approximately 11 times expected earnings for the year.

5. Salesforce

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NYSE: CRM

Salesforce

Premium Feature

Moneyball Superscore

83/100

Today's Change

(0.33%) $0.85

Current Price

$258.39

Key Data Points

Market Cap

$212B

Day's Range

$254.96 - $262.32

52wk Range

$146.32 - $269.11

Volume

7.2M

Avg Vol

15.4M

Gross Margin

74.69%

Dividend Yield

0.66%

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Salesforce (CRM +0.19%) is a leading provider of customer relationship management (CRM) software. Despite continuing to post very strong business results, the company's stock has faced intense valuation pressure.

While headwinds related to artificial intelligence generally haven't been evident in the company's quarterly reports, the stock has been hit by substantial pullbacks amid concerns that AI will disrupt the company's business model. On the other hand, many investors may be significantly underestimating Salesforce's ability to win with AI and leverage its strong foundations to continue delivering impressive sales and earnings growth. With the company trading at just 15 times this year's expected earnings, Salesforce has the makings of a cheap tech stock that's worth taking a chance on.

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6. Qualcomm

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NASDAQ: QCOM

Qualcomm

Premium Feature

Moneyball Superscore

81/100

Today's Change

(-2.57%) $-4.38

Current Price

$166.10

Key Data Points

Market Cap

$179B

Day's Range

$162.21 - $166.65

52wk Range

$121.99 - $259.92

Volume

3.3M

Avg Vol

15.4M

Gross Margin

54.23%

Dividend Yield

2.11%

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Almost every smartphone on the planet contains some sort of Qualcomm (QCOM -2.57%) chip. As mobility expands to encompass other devices (cars, smart-home devices, industrial equipment, etc.), Qualcomm is finding new avenues for growth. Yet softness in the Chinese mobile market and a push from Apple (AAPL +2.62%) to reduce its use of Qualcomm designs in favor of its own mobile chips for the iPhone and iPad, Qualcomm trades for less than many of its semiconductor industry peers.

In the summer of 2026, Qualcomm's stock was valued at just 15 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, investors who buy shares at their currently depressed levels will be treated to a dividend yield above 2% and share repurchases to sweeten the deal.

7. Lumen Technologies

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NYSE: LUMN

Lumen Technologies

Premium Feature

Moneyball Superscore

41/100

Today's Change

(2.48%) $0.16

Current Price

$6.41

Key Data Points

Market Cap

$6.4B

Day's Range

$6.05 - $6.51

52wk Range

$4.57 - $11.95

Volume

5.1M

Avg Vol

13.3M

Gross Margin

25.14%

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Lumen Technologies (LUMN +2.48%) is a telecommunications and networking technology company in the midst of a major transition. The company is pivoting away from the consumer market toward the booming enterprise data center market.

Lumen's Private Connectivity Fabric (PCF) technologies have won big deals with customers, including Microsoft (MSFT -1.27%) and Meta Platforms (META +1.25%), and the tech specialist has also forged a partnership with Palantir (PLTR -1.32%).

Despite some potentially powerful growth drivers on the horizon, Lumen was valued at roughly 55% of its expected annual sales in August 2026. If the company continues to score wins in the AI market, time may show that the stock was very cheap at that multiple.

How to buy cheap tech stocks

Open your brokerage app: Log in to your brokerage account where you manage your investments.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in cheap tech stocks

Investing in tech stocks that look cheap relative to key valuation metrics and long-term growth opportunities can be a way for investors to score massive long-term returns.
Almost every company will go through challenging periods. Investing in high-quality tech stocks that have suffered major sell-offs can open the door to very strong results when performance improves.
Sometimes "cheap stocks" are cheap for a reason, and investors should always be mindful of execution and valuation risks before buying heavily into a stock.
Valuation multiples are tools that rarely tell the full story of a company and its stock, and investors should understand that there is often significant uncertainty when evaluating tech stocks that look cheap on a fundamental or relative basis to potential long-term opportunities.

Why invest in cheap tech stocks

Investing in cheap tech stocks is a way for investors to gain exposure to companies with low sales and earnings multiples relative to their long-term performance potential. Companies in this category are often relatively mature or undergoing major business pivots. Investing in these stocks offers a chance to capitalize on underappreciated growth and execution opportunities.

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What to look for in undervalued tech stocks

Investors are generally well served by keeping an eye on tech companies' sales and earnings growth, as well as valuation metrics such as price-to-sales and price-to-earnings ratios.
It's helpful to keep an eye on each company's number of active users or customer count, and on how much per-user or per-client sales and profit it generates.
There's no reliable one-size-fits-all approach for evaluating stocks in the space, but charting business momentum and keeping intrinsic value in mind can make it easier to identify winners.

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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

Seven undervalued tech stocks to consider

1. Kyndryl Holdings

Key Data Points

Key Data Points

3. Alphabet

Key Data Points

4. AT&T

Key Data Points

5. Salesforce

Key Data Points

6. Qualcomm

Key Data Points

7. Lumen Technologies

Key Data Points

How to buy cheap tech stocks

Benefits and risks of investing in cheap tech stocks

Why invest in cheap tech stocks

What to look for in undervalued tech stocks

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About the Author

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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

Key Data Points

2. Micron Technology

4. AT&T

5. Salesforce

7. Lumen Technologies

How to buy cheap tech stocks

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points