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 a variety of metrics can come with a substantial amount of risk.

Do cheap tech stocks pay dividends?

Some cheap tech stocks pay dividends. Tech companies may opt to pay dividends in order 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 for their businesses.

What is the fastest growing tech company?

Nvidia has been the fastest-growing large tech company over the last five years.

Should beginners invest in cheap tech stocks?

Investing in cheap tech stocks can be a good way for beginner investors to gain exposure to the tech sector, learn market dynamics, and potentially set the stage for strong returns.

Are cheap tech stocks riskier than established tech stocks?

Cheap tech stocks and established tech stocks aren't necessarily mutually exclusive. Investors are often willing to pay premiums to own companies with strong growth and earnings outlooks, but established tech companies can also be undervalued. Companies that trade at relatively low sales and earnings multiples often carry those valuations for seemingly good reasons, but the passage of time can show that an individual business's earnings potential was being significantly underestimated by the market. On the other hand, there are some big risk factors that come with betting on turnarounds and the possibility of stabilizing results or reaccelerating growth.

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 that trade at seemingly opportunistic multiples can be a path to substantial returns, these stocks can still see substantial valuation pullbacks that result 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 Feb 19, 2026 at 2:29 PM EST | Fact-checked by Frank Bass

Key Points

Kyndryl has potential but faces uncertainties, trading with a low PE due to accounting concerns.
Applied Materials has stable growth from new expansions and services in chip manufacturing.
Alphabet remains strong with high operating margins and diversified tech investments.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Kyndryl (NYSE:KD)	$3.0 billion	0.00%	IT Services
Applied Materials (NASDAQ:AMAT)	$302.5 billion	0.48%	Semiconductors and Semiconductor Equipment
Alphabet (NASDAQ:GOOGL)	$4.2 trillion	0.24%	Interactive Media and Services
AT&T (NYSE:T)	$182.0 billion	4.26%	Diversified Telecommunication Services
Himax Technologies (NASDAQ:HIMX)	$1.9 billion	3.38%	Semiconductors and Semiconductor Equipment
Intel (NASDAQ:INTC)	$424.4 billion	0.00%	Semiconductors and Semiconductor Equipment
Qualcomm (NASDAQ:QCOM)	$160.1 billion	2.37%	Semiconductors and Semiconductor Equipment
Lumen Technologies (NYSE:LUMN)	$9.0 billion	0.00%	Diversified Telecommunication Services

Data as of Apr 29, 2026. Showing 8 of 8 tickers.

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NYSE: KD

Kyndryl

Today's Change

(3.98%) $0.54

Current Price

$13.99

Key Data Points

Market Cap

$3.0B

Day's Range

$13.31 - $14.06

52wk Range

$10.10 - $44.20

Volume

184K

Avg Vol

5.7M

Gross Margin

21.87%

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NASDAQ: AMAT

Applied Materials

Today's Change

(0.39%) $1.48

Current Price

$382.59

Key Data Points

Market Cap

$302B

Day's Range

$377.07 - $386.00

52wk Range

$144.71 - $420.50

Volume

Avg Vol

7.1M

Gross Margin

48.72%

Dividend Yield

0.48%

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Applied Materials (AMAT +0.19%) 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 growth in conjunction with the overall 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

(0.05%) $0.16

Current Price

$349.94

Key Data Points

Market Cap

$4.2T

Day's Range

$344.21 - $355.79

52wk Range

$147.84 - $355.79

Volume

31M

Avg Vol

32M

Gross Margin

59.68%

Dividend Yield

0.24%

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One of the FAANG stocks (large tech companies with big competitive advantages), Alphabet (GOOG -0.17%) (GOOGL -0.11%) 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 23 times one-year forward expected earnings.

4. AT&T

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NYSE: T

AT&T

Today's Change

(-1.19%) $-0.31

Current Price

$25.75

Key Data Points

Market Cap

$182B

Day's Range

$25.64 - $26.16

52wk Range

$22.95 - $29.79

Volume

23M

Avg Vol

43M

Gross Margin

43.08%

Dividend Yield

4.26%

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NASDAQ: HIMX

Himax Technologies

Today's Change

(4.66%) $0.51

Current Price

$11.45

Key Data Points

Market Cap

$1.9B

Day's Range

$10.84 - $11.46

52wk Range

$6.76 - $12.20

Volume

1.5M

Avg Vol

2.9M

Gross Margin

30.57%

Dividend Yield

3.38%

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Himax Technologies (HIMX +4.66%) is a designer of display-driver and image sensor chips. The company's technologies are used to regulate the colors displayed by pixels on screens, 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 has tended to see its business performance fluctuate significantly in conjunction 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. Himax stock looks attractively valued, trading at roughly 17 times next year's expected earnings, and the tech specialist also pays a dividend that varies depending on its level of profitability.

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6. Intel

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NASDAQ: INTC

Intel

Today's Change

(11.93%) $10.08

Current Price

$94.60

Key Data Points

Market Cap

$424B

Day's Range

$86.10 - $94.94

52wk Range

$18.96 - $94.94

Volume

6.3M

Avg Vol

102M

Gross Margin

35.90%

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Intel (INTC +11.93%) is a designer of chips for both consumer and business markets. Unlike almost every other semiconductor company in its category, the company also manufactures most of the chips that it designs.

Unfortunately, Intel's semiconductor design and foundry businesses have both been facing some significant challenges. Rising competition and the importance of success in the high-end AI processor market are pressuring Intel's core design unit, and the company has yet to prove that its chip foundry business will be an attractive destination for third-party customers looking to have their chips fabricated.

On the other hand, Intel still has opportunities to catch up in the AI chip space -- and its chip foundry capabilities could emerge as a vital national resource. Intel is a turnaround play that could have huge upside.

7. Qualcomm

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NASDAQ: QCOM

Qualcomm

Today's Change

(4.00%) $6.00

Current Price

$156.00

Key Data Points

Market Cap

$160B

Day's Range

$151.00 - $157.29

52wk Range

$121.99 - $205.95

Volume

31M

Avg Vol

12M

Gross Margin

55.10%

Dividend Yield

2.37%

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Almost every smartphone on the planet contains some sort of Qualcomm (QCOM +4.00%) 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 -0.31%) 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 winter of 2026, Qualcomm's stock was valued at just 13 times expected earnings for the year. But in the next few years, the company thinks it will experience a lot 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.

8. Lumen Technologies

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NYSE: LUMN

Lumen Technologies

Today's Change

(-0.34%) $-0.03

Current Price

$8.69

Key Data Points

Market Cap

$9.0B

Day's Range

$8.55 - $8.82

52wk Range

$3.37 - $11.95

Volume

8.3M

Avg Vol

14M

Gross Margin

24.31%

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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, and Intel. The Motley Fool has positions in and recommends Alphabet, Apple, Applied Materials, Himax Technologies, Intel, Kyndryl, Micron Technology, 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. Intel

Key Data Points

7. Qualcomm

Key Data Points

8. Lumen Technologies

Key Data Points

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Cheap tech stocks FAQ

What are five undervalued tech stocks?

What are five undervalued tech stocks?

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

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

Do cheap tech stocks pay dividends?

Do cheap tech stocks pay dividends?

What is the fastest growing tech company?

What is the fastest growing tech company?

Should beginners invest in cheap tech stocks?

Should beginners invest in cheap tech stocks?

Are cheap tech stocks riskier than established tech stocks?

Are cheap tech stocks riskier than established tech stocks?

How much should I invest in cheap tech stocks?

How much should I invest in cheap tech stocks?

About the Author

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Stocks Mentioned

Premium Investing Services

Cheap tech stocks FAQ

What are five undervalued tech stocks?

What are five undervalued tech stocks?

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

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

Do cheap tech stocks pay dividends?

Do cheap tech stocks pay dividends?

What is the fastest growing tech company?

What is the fastest growing tech company?

Should beginners invest in cheap tech stocks?

Should beginners invest in cheap tech stocks?

Are cheap tech stocks riskier than established tech stocks?

Are cheap tech stocks riskier than established tech stocks?

How much should I invest in cheap tech stocks?

How much should I invest in cheap tech stocks?

How to Invest in the Vanguard Growth ETF (VUG)

Best Cloud Computing Stocks for 2026 and How to Invest

Best Stocks to Buy in April 2026

5 Best Metaverse Stocks in 2026 and How to Invest

Key Data Points

Eight undervalued tech stocks to consider

1. Kyndryl Holdings

3. Alphabet

6. Intel

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

Key Data Points

2. Applied Materials

4. AT&T

5. Himax Technologies

7. Qualcomm

8. Lumen Technologies

How to buy cheap tech stocks