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.
Eight 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 eight "cheap" tech stocks that could deliver strong returns over the long term:
1. Kyndryl Holdings

NYSE: KD
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NASDAQ: AMAT
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3. Alphabet

NASDAQ: GOOGL
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NYSE: T
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NASDAQ: HIMX
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6. Intel

NASDAQ: INTC
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NASDAQ: QCOM
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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 its customer count, plus how much per-user or per-client sales and profit a business is generating.
- 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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FAQ
Cheap tech stocks FAQ
About the Author
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.





