Three Affordable Tech Stocks Worth Considering Now

While the broader stock market has recovered somewhat after its recent sell-off, several tech stocks continue to trade below their highs, presenting investors with attractive buying opportunities. Here, we examine three tech stocks currently available at lower valuations.

1. Nvidia

Nvidia (NASDAQ: NVDA) is trading nearly 23% below its peak, making it an appealing growth stock. Over the past two years, Nvidia has managed to double its revenue consistently. Analysts predict revenue growth exceeding 50% for the current year.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Despite its impressive growth, Nvidia’s stock is currently priced at a forward price-to-earnings (P/E) ratio of under 27 based on this year’s analyst estimates, along with a price/earnings-to-growth (PEG) ratio of under 0.5. Typically, stocks with PEG ratios below 1 are viewed as undervalued, so Nvidia’s PEG of 0.5 indicates good value potential.

Nvidia’s chips are foundational to AI infrastructure, complemented by its robust CUDA software platform. The company’s future performance will largely hinge on the growth trajectory of AI infrastructure.

Currently, spending on AI is accelerating. The top three cloud computing firms are increasing their budgets for AI-related capital expenditures this year. Additionally, a consortium including OpenAI and Softbank plans extensive data center construction over the coming years. Nvidia’s management anticipates data center capex to exceed $1 trillion by 2028.

As long as investment in AI infrastructure continues, Nvidia remains a valuable stock worth buying now.

Image source: Getty Images.

2. Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing (NYSE: TSM), or TSMC, presents another affordable tech stock opportunity. TSMC’s shares are down approximately 22% from their highs, with a forward P/E ratio of 20 and a PEG ratio of 0.7.

TSMC is poised to benefit significantly from AI infrastructure investments and the increasing use of semiconductors in everyday devices such as automobiles, appliances, and smartphones. The company is the world leader in semiconductor contract manufacturing, commanding a considerable market share in advanced chip production.

TSMC’s technological expertise has established it as a crucial partner to major clients like Nvidia and Apple. The company is enhancing chip density, allowing customers to design powerful chips that consume less power. This advancement has also led TSMC to increase its prices, contributing to growing gross margins.

To meet surging demand, TSMC is making substantial investments to expand its capacity. The combination of capacity growth, pricing power, and improved margins positions TSMC as a solid bargain growth stock at its current valuation.

3. Alphabet

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is another promising tech stock, trading approximately 19% below its highs, with a forward P/E ratio of just above 18.5.

As the leader in search engines, Alphabet holds around 90% market share. Furthermore, the company sees potential in AI as its Google search engine integrates AI technology to enhance search results. The potential for monetization of AI-driven search features through new ad formats is significant, especially given Alphabet’s vast user base and comprehensive ad partner network. The company dominates the digital advertising space, with Google and YouTube being two of the largest platforms affiliated with it.

Alphabet is also diversifying its portfolio, including acquiring the fast-growing cybersecurity company Wiz. This acquisition will enhance Google Cloud’s capabilities, particularly in cloud detection and response (CDR) security. As Alphabet facilitates cross-sell opportunities, Wiz’s growth trajectory is expected to continue.

In addition, Alphabet leads in the autonomous driving sector with its Waymo initiative. While gaining traction in San Francisco has taken time, the service is capturing market share since last year and plans expansion into Atlanta and Miami, along with additional testing in other U.S. cities.

Lastly, Alphabet is making strides in the field of quantum computing, having achieved a major breakthrough with its Willow chip last year. Although quantum computing is still in its infancy, this development adds significant long-term potential for Alphabet’s stock.

Overall, Alphabet boasts a diverse range of market-leading and emerging businesses that are well-positioned for future growth.

Should you invest $1,000 in Nvidia right now?

Before considering an investment in Nvidia stock, take this into account:

The Motley Fool Stock Advisor analyst team recently named their selection of the 10 best stocks for investors to buy, and Nvidia was not included. These stocks may generate impressive returns in the coming years.

Take, for instance, when Nvidia was recommended on April 15, 2005… an investment of $1,000 would now be worth $739,720*!

Stock Advisor provides a roadmap for investment success, including portfolio-building guidance, regular analyst updates, and two new stock picks each month. Since 2002, this service has more than quadrupled the return of the S&P 500.* Join to access the latest top 10 list.

see the 10 stocks »

*Stock Advisor returns as of March 24, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

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