5 Cheap Tech Stocks to Buy Right Now

Technology stocks have been leading the market higher the past few years, but that doesn't mean there still aren't good values out there. Let's look at five cheap tech stocks to buy right now.

Nvidia

While Nvidia's (NASDAQ: NVDA) stock isn't often associated with being cheap, it trades at a forward price-to-earnings ratio (P/E) of just 25 times next year's analyst estimates. For a company that just grew its revenue by 62% last quarter and continues to see insatiable demand for its graphics processing units (GPUs), that's a bargain.

Spending on artificial intelligence (AI) just continues to climb, and Nvidia remains in the best position to capture it. It has about a 90% market share in the GPU market, and its CUDA software platform, which is where most foundational AI code has been written, gives it a wide moat. And the company has shown it is ready to go on the offensive following a few recent acquisitions and partnerships.

Taiwan Semiconductor Manufacturing

With a forward P/E of less than 24, Taiwan Semiconductor Manufacturing (NYSE: TSM) is another top tech bargain. The company saw its revenue soar 41% last quarter, and it is projecting that demand for AI chips will continue to grow at a more than 40% compound annual rate over the next few years.

As the only company that can manufacture advanced chips at scale with few defects, TSMC is in a prime position to benefit from the strong continued demand for GPUs and other AI chips. The company is working closely with chip designers on their semiconductor road maps to expand capacity to meet the increasing demand. And it has strong pricing power that will continue to drive revenue growth as well.

Meta Platforms

Meta Platforms (NASDAQ: META) is the cheapest of the so-called "Magnificent Seven" stocks, trading at a forward P/E of just 22. However, the company has been a strong grower, with its revenue climbing 26% last quarter.

Meta's growth is being driven by AI, which it is using to both attract new users and keep people on its sites longer by feeding them more of the content they are interested in. At the same time, it's using AI to help advertisers create better ad campaigns and improve targeting.

Last quarter, this led to a 14% jump in ad impressions and a 10% rise in ad prices. The company has just started gradually introducing ads to its WhatsApp messaging platform and its 3 billion users, as well as on its newest platform, Threads. This should help drive growth in the coming years.

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Salesforce

With a forward P/E of just above 20, shares of Salesforce (NYSE: CRM) are inexpensive for a solidly growing software-as-a-service (SaaS) company with recurring revenue and high gross margins. Meanwhile, the company has the potential to become an AI winner.

Its acquisition of Informatica, whose platform gathers data from a variety of sources and creates a single record, helps position it as a central source for a company's data from which AI agents can then act. This is an important piece of the puzzle with AI agents, which should help its solution continue to gain traction.

Last quarter, annual recurring revenue for its AI agent platform surged 330% to $540 million. And this is really just the beginning of what could become an enormous opportunity.

Pinterest

With a forward P/E just above 13, Pinterest (NYSE: PINS) is not only cheap, but its stock is also in the bargain bin. Last quarter, its revenue climbed 17%, while it grew its earnings before interest, taxes, depreciation, and amortization by 24%.

The company has been seeing strong growth in users and average revenue per user in international markets, while it has transformed its site into an AI-powered shoppable discovery platform. Its Performance Plus ad suite is helping advertisers create better campaigns and get better returns on their spending.

Users are increasingly drawn to Pinterest's platform to shop by the AI features it has introduced, such as visual search and virtual clothes try-ons. Its enhancements on both the front and back ends should continue to drive growth.

Geoffrey Seiler has positions in Meta Platforms, Pinterest, and Salesforce. The Motley Fool has positions in and recommends Meta Platforms, Nvidia, Pinterest, Salesforce, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.