While the markets are hovering close to record levels, there are still opportunities to find undervalued stocks, even among technology companies. Some tech firms continue to offer compelling valuations and have significant potential for long-term expansion.
Here are three tech stocks worth considering for purchase right now.
Taiwan Semiconductor Manufacturing
Although shares of Taiwan Semiconductor Manufacturing ( TSM -1.17%) have climbed roughly 35% this year, the stock remains reasonably priced, trading at a forward price-to-earnings (P/E) ratio below 24 based on 2026 analyst projections. This is a great value for a company widely regarded as the backbone of the semiconductor industry. The current surge in artificial intelligence (AI) infrastructure would not be possible without TSMC’s advanced technology and production capabilities.
TSMC is responsible for producing nearly all of the world’s most sophisticated chips, as rivals have struggled to match its consistent ability to manufacture smaller node chips with high efficiency. Progress in advanced chip technology depends on continually reducing node sizes, which increases the number of transistors per chip. This enables each new generation of chips, such as graphics processing units (GPUs), to deliver greater power and improved energy efficiency.
TSMC stands alone as the only foundry that has repeatedly achieved smaller nodes without sacrificing yield. This has made it the preferred manufacturing partner for chip designers and a vital part of the semiconductor supply chain. The company’s unique position has also given it significant pricing leverage and a long growth trajectory. Management anticipates that demand for AI chips will rise at an annual rate exceeding 40% through 2028.
Given its growth prospects and current valuation, TSMC stands out as one of the most promising ways to invest in AI today.
Alphabet
Even after a strong performance this year, Alphabet ( GOOGL 0.28%) ( GOOG 0.21%) remains attractively valued at around 24 times projected 2026 earnings. This is lower than most other mega-cap tech stocks, despite Alphabet’s more diversified and arguably more resilient business model.
There have been concerns that AI could threaten Google Search, but in reality, search revenue growth has picked up as Alphabet has introduced new AI-powered features like AI Overviews and Circle to Search. These innovations are boosting user engagement and enabling the company to generate more revenue from search queries.
The recent Department of Justice ruling also removed a significant source of uncertainty, allowing Alphabet to maintain its search partnership with Apple and keep control over Chrome and Android. This secures Alphabet’s substantial distribution advantage. Chrome continues to lead the browser market, and Android powers nearly 75% of smartphones, ensuring that most people access the web through Google by default.
Alphabet also operates one of the fastest-expanding cloud platforms, with Google Cloud’s revenue jumping 32% last quarter and profits more than doubling. The ongoing rush by businesses to develop AI solutions on cloud infrastructure is fueling robust demand. While this trend benefits the entire sector, Alphabet has an edge thanks to its proprietary AI chips and Gemini models, which enhance both efficiency and cost-effectiveness.
With its strengths in search, cloud computing, and emerging ventures like the Waymo autonomous vehicle business, Alphabet is well-positioned for continued growth. The current share price does not fully capture this potential.
Image source: Getty Images.
Pinterest ( PINS 0.43%) is another attractively priced tech stock that has been leveraging AI to its advantage. The company’s shares are trading at less than 16 times estimated 2026 earnings, which is quite low for a business growing revenue in the mid-teens and improving its operating margins. Under CEO Bill Ready, Pinterest has become much more commerce-friendly and appealing to advertisers.
Pinterest has developed its own multimodal AI system, which powers visual search and tailors recommendations for users. This enhances the user experience and makes it easier for people to discover products they want to purchase. Advertisers are also seeing improved outcomes through automation tools like Performance+, which streamline campaign setup, targeting, and bidding.
This has helped Pinterest increase its average revenue per user (ARPU), an area where it has traditionally lagged. Additionally, a collaboration with Alphabet is enabling Pinterest to better monetize its user base in emerging markets.
In the last quarter, Pinterest’s international ARPU rose by 26% in Europe and 44% in other regions, though there is still significant room to catch up with competitors. The platform is also attracting more users, with monthly active users climbing 11% to 578 million, driven largely by growth in emerging markets.
Pinterest has also teamed up with Amazon and recently partnered with Instacart, making it easier for users to shop directly from the platform.
All things considered, Pinterest appears set for robust growth in the coming years, and its current valuation leaves ample space for further multiple expansion as earnings improve.
