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2 Cheap Tech Stocks to Buy Right Now

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The Nasdaq roared to a record high earlier this year, confirming the presence of a bull market. But it didnโ€™t stop there. The index continues to climb, just recently reaching yet another new high as investors pile into technology stocks and other growth players. This is great, but if youโ€™re looking to buy tech stocks, you might be wondering if valuations have become too lofty.

Iโ€™ve got good news for you: There still are plenty of solid bargains out there, including certain stocks that have missed out on the rally as well as some that have led the gains. Two of these are looking particularly cheap right now considering their long-term potential, making them fantastic buys.

Letโ€™s check out two stocks to buy hand over fist while the price is right.

Two people smile while looking at a tablet outdoors.

Image source: Getty Images.

1. Meta Platforms

Many of us know Meta Platforms (NASDAQ: META) very well for one good reason: We use its apps every day to communicate with family, friends, or colleagues. Meta is the worldโ€™s leading social media company, operating Facebook, Messenger, WhatsApp, and Instagram. More than 3.2 billion people use at least one of these platforms every day.

Why is this important? Because itโ€™s the key to Metaโ€™s billion-dollar sales. The company makes the lionโ€™s share of its revenue through advertising, and advertisers choose Meta because they know they can reach so many people on its apps. In the most recent quarter, advertising brought in $35 billion in revenue for the company.

Meta has been able to translate this into earnings growth, and the tech company is doing so well, it even launched its first-ever dividend earlier this year.

Now, one big move could keep Meta ahead, and thatโ€™s the companyโ€™s investment in artificial intelligence (AI). It has built and is training its own large language models to power innovations such as AI assistants to help users of all of its apps get things done โ€” from leisure activities to professional tasks. Itโ€™s starting out with the recently released Meta AI assistant.

This could keep users coming back more frequently and spending more time on its apps, which should keep advertisers coming back, too. That makes Meta, trading for 23 times forward earnings estimates today, look like an absolute steal โ€” especially considering weโ€™re in the early days of a potential AI revolution.

2. Intel

Intel (NASDAQ: INTC) has reached a turning point in its story. The company is the leader in central processing units (CPUs), the main elements that power computers, but it fell behind in the high-growth area of AI. That weighed on earnings potential and its share price in recent years.

Today, Intel has made AI a priority and just recently announced the Gaudi 3 AI accelerator, its most powerful chip ever. Gaudi 3 even has outperformed market leader Nvidiaโ€˜s H100, and at a lower price, so the company could start to turn some heads โ€” and gain market share. Though Nvidia aims to release an even more powerful chip later this year, Intelโ€™s product still could appeal to many potential customers that donโ€™t necessarily need the fastest chip out there.

On top of Intelโ€™s focus on AI, the company also is making another big move that could drive growth over the long term. It is opening up its manufacturing to others, aiming to become the worldโ€™s second-largest foundry by 2030.

The company started last year with one customer for its 18A process, and by the end of the first quarter of this year, announced a total of six. Foundry operations could be a huge revenue driver for Intel over time because, as the only such operation in the U.S., it could win over many North American customers that might like the idea of working with a foundry close to home.

Today, Intel shares trade for only 28 times forward earnings estimates, a terrific entry point for a company about to potentially enter a major new wave of growth.

Should you invest $1,000 in Meta Platforms right now?

Before you buy stock in Meta Platforms, consider this:

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Foolโ€™s board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short May 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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