Key Points
TSMC is one of the companies best positioned to benefit from the AI infrastructure buildout.
Pinterest is seeing solid growth as it transforms itself into a shopping discovery platform.
Both stocks are too cheap given their current growth and long-term opportunities.
With the market trading down a bit from its highs, there are bargains to be found in this market, even in the tech sector. To take advantage of that, you don't need to start with a lot of money, and investing $1,000 can be a great place to start.
Let's look at two stocks that could be bargain buys to scoop up before the end of the year.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
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Taiwan Semiconductor Manufacturing
One of the best bargains in the tech space right now is Taiwan Semiconductor Manufacturing (NYSE: TSM). Its stock trades at a forward price-to-earnings (P/E) ratio of less than 22.5 times 2026 analyst earnings estimates, while it grew its revenue by more than 40% last quarter. Meanwhile, the company is one of the best positioned to continue to benefit from the artificial intelligence (AI) infrastructure buildout.
TSMC is the world's largest semiconductor contract manufacturer and is the primary company that makes the advanced chips that go into data centers and smartphones. The company has built a wide moat in the foundry (chipmaking) space, due to its technological expertise and scale. Manufacturing chips is a difficult endeavor, and there is a constant push to reduce node sizes to fit more transistors on a chip. This increased density helps chips become more powerful and energy efficient.
As rivals struggle to achieve high yields (low defect rate) at scale, TSMC has become an invaluable part of the semiconductor supply chain. It now works closely with leading chip designers to help increase capacity to meet their projected future needs. This gives the company great visibility, and it is currently forecasting that AI chip demand will increase at a mid-40% compound annual growth rate (CAGR) over the next few years.
This dynamic has also given the company solid pricing power over the years, which has helped it lift its gross margins. The company is reportedly set to raise prices by 3% to 10% in 2026 for advanced nodes, while pricing for its new 2nm processing technology could be more than 50% higher than 3nm.
With spending on AI data centers showing no signs of letting up, TSMC is a bargain buy at current levels.
Pinterest
One of the cheapest tech stocks around is Pinterest (NYSE: PINS). The stock currently has a forward P/E of just over 12.5 times based on 2026 analyst estimates. Given that valuation, you would think that the company was only growing modestly, but that is certainly not the case.
Last quarter, it grew revenue by 17% year over year, adjusted EPS by 19%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 24%. It also has nearly $2.7 billion in cash and marketable securities on its balance sheet and no debt, and is on pace to generate well over $1 billion in free cash flow this year.
This is not a struggling company. In fact, its underlying metrics show a company that is making strong strides, especially in international markets. In Q3, its European revenue increased 41% and its rest-of-world revenue rose 66%, while it experienced strong gains in international monthly user additions and average revenue per user (ARPU).
At the same time, the company has done a great job of making its platform both more attractive to users and advertisers. Over the past few years, Pinterest has been working to transform itself from just an online vision board to a shopping discovery platform. It has built its own multimodal large language model (LLM) to help power visual search and enhance its recommendation engine. Now it's designed a voice-activated AI assistant that can act more like a personal shopping assistant to help users find new products. On the back-end, meanwhile, its AI-powered ad tool, Performance+, is helping brands improve targeting and bid more effectively.
While the company issued conservative guidance last quarter due to tariffs and its ties to U.S. retailers and the home furnishings category, it is still growing nicely, and the stock is undervalued.
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Geoffrey Seiler has positions in Pinterest. The Motley Fool has positions in and recommends Pinterest and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.