The tech world moves fast, and sometimes good companies get overlooked. It’s easy to get caught up in the hype around the biggest names, but there are solid, undervalued tech stocks out there that could be great for your portfolio in 2026. We’re talking about companies that might not be getting all the headlines but have strong foundations and room to grow. Finding these gems takes a bit of digging, but the potential rewards can be pretty significant for those willing to look beyond the obvious.
Key Takeaways
- Look at companies in AI infrastructure like Nvidia and TSMC, which are still showing strong growth potential even if they’ve been popular.
- Consider communication tech companies such as CommScope and Charter Communications, which are building out important networks.
- Some newer tech areas, like Lightspeed Commerce and Galaxy Digital, might offer chances for growth but come with more risks.
- Don’t forget about established software players like Salesforce, which are finding new ways to use AI to improve their services.
- When searching for undervalued tech stocks, check financial health, growth prospects, and how the company fits into future tech trends.
AI Infrastructure Leaders Trading at Attractive Valuations
Even though artificial intelligence has been a huge driver of stock market gains lately, it doesn’t mean you can’t find good deals. If you’re looking to invest, picking up shares in a few AI companies that seem undervalued right now could be a smart move for 2026. Let’s check out some of these leaders.
Nvidia’s Compelling Growth and Value Proposition
Nvidia (NASDAQ: NVDA) has been a standout performer, but its stock price still looks pretty reasonable. It’s trading at a forward price-to-earnings (P/E) ratio of less than 25 times what analysts expect for next year. Plus, its price/earnings-to-growth (PEG) ratio is under 0.7. Generally, a PEG ratio below 1 suggests a stock might be undervalued. This is quite a bargain for a company that saw its revenue jump 62% last quarter. Nvidia is a major player in building the infrastructure needed for AI. With demand for AI chips expected to grow significantly over the next few years, Nvidia is well-positioned to keep pace. Its graphics processing units (GPUs) are the go-to for AI tasks, and its CUDA software platform gives it a strong advantage.
Taiwan Semiconductor Manufacturing’s Dominance in Advanced Chip Production
Taiwan Semiconductor Manufacturing (NYSE: TSM), often called TSMC, is another AI powerhouse whose stock seems like a good buy. It’s trading at a forward P/E of less than 20 times estimated 2026 earnings, with a PEG ratio well below 1. TSMC is the leading manufacturer of advanced logic chips and is pretty much the only company that can produce chips at very small sizes with few errors, at scale. These smaller chip sizes mean more power and better energy efficiency. While competitors have had trouble with production yields, TSMC’s new 2-nanometer chips have performed better than expected. They’re even speeding up plans to build facilities for 1.4nm chips, which is two generations ahead. This puts TSMC in a near-monopoly position for advanced chip manufacturing. They are increasing production capacity to meet demand and raising prices, which should lead to strong growth for a while.
Salesforce’s Strategic Position in Agentic AI
Software companies, including Salesforce (NYSE: CRM), have faced some challenges as AI has become more prominent. However, Salesforce is now trading at a forward P/E of about 20 times and a PEG ratio well under 1. While it hasn’t seen the same direct AI boost as infrastructure companies, it has a big opportunity in agentic AI. This is a newer area where AI doesn’t just answer questions but actually performs tasks. As agentic AI develops, it could lead to a sort of virtual workforce. A big hurdle for AI agents is the risk of ‘hallucinations’ or incorrect answers, which is even more critical when AI is taking action. AI tends to perform better with clean, organized data. Salesforce has been building the foundation to become a company’s main source of reliable data that AI agents can use. The company has always been good at connecting data from different departments to give employees, especially customer service teams, a clear, unified view. They’ve expanded on this with their Data 360 solution, which could be key for AI agents.
Communications Infrastructure Poised for Expansion
The way we connect is constantly changing, and the companies building the pipes for that connection are pretty important. Think about it – faster internet, more reliable cell service, and all the data centers humming away. These aren’t just nice-to-haves anymore; they’re pretty much essential.
CommScope’s Robust Growth in Connectivity Solutions
CommScope (NASDAQ:COMM) is one of those companies quietly working behind the scenes. They make the stuff that connects us, from fiber optic cables to the gear inside your internet provider’s box. It’s not the flashiest part of tech, but it’s definitely necessary. They’ve been seeing some solid growth lately, with sales jumping up quite a bit recently. Their adjusted EBITDA, which is a way to measure how much money they’re making from their operations, has also nearly doubled. That’s a good sign.
Here’s a quick look at their business segments:
- Connectivity and Cable Solutions: This is where they make the fiber and copper cables that power everything from your home internet to big data centers.
- Networking, Intelligent Cellular and Security Solutions: Think Wi-Fi access points and systems that help cell signals work better indoors.
- Access Network Solutions: This involves equipment for service providers building out networks for homes and businesses.
They’ve also managed to boost their cash reserves, which is always a good thing, even while they’re investing in new projects. Analysts seem to think their revenue and free cash flow will keep climbing over the next few years. This suggests CommScope could be a company worth watching as demand for better connectivity keeps growing.
Charter Communications’ Expanding Broadband Network
Charter Communications (NASDAQ:CHTR) is another big player in the connectivity game, especially if you’re in the US. They’re the folks behind the Spectrum brand, providing internet, TV, and mobile services to millions. It’s a tough business with a lot of debt, which is something to keep in mind. However, they’re also working on expanding their broadband network, which is key as more and more of our lives move online.
Charter’s financial picture shows a significant amount of long-term debt, but their free cash flow is expected to grow substantially over the next few years. This growing cash flow could give them the flexibility to pay down debt and invest in new growth areas. Some analysts believe the stock is currently undervalued, meaning it might be trading for less than its potential worth. As people rely more on fast and stable internet for work, entertainment, and everything else, Charter’s role in providing that infrastructure becomes more important.
Navigating Volatility in Emerging Tech Sectors
Alright, let’s talk about some of the trickier parts of the tech world. You know, the areas where things can move really fast, sometimes in ways that make you scratch your head. These emerging sectors can be exciting because they often hold the promise of big future gains, but they also come with a good dose of unpredictability. It’s like walking a tightrope – you want to get to the other side, but you’ve got to keep your balance.
Lightspeed Commerce’s Path to Sustainable Growth
Lightspeed Commerce (TSX:LSPD) is a company that provides payment and point-of-sale software for businesses, especially retailers and restaurants. On the surface, it sounds pretty straightforward, right? But the software world, especially for growth companies, really lives and dies by how consistently they can expand. Lightspeed has been putting in the work to focus its efforts and show that it can grow without just burning through cash. Still, the stock can really swing based on how the market is feeling. When things get a bit shaky out there, investors tend to shy away from anything that feels like an extra expense, even if the product itself is something businesses rely on.
Their latest reports show some good progress. In their fiscal second quarter of 2026, revenue was up 15% year over year, hitting $319 million. They also managed to bring in $18 million in adjusted free cash flow. They even boosted their outlook for the full fiscal year 2026, which was a positive sign. The main risk, though, is pretty simple: if their growth starts to slow down, or if their profit margins get squeezed, the market can quickly change its tune and lower the stock’s valuation. Even though it’s not trading at those super-high prices from a few years ago, Lightspeed still needs to execute its plans cleanly to keep investors happy.
Galaxy Digital’s Dual Bet on Crypto and Data Centers
Then you have Galaxy Digital (TSX:GLXY). This one is popular for a different reason. It gives folks a way to get involved with crypto activity, and on top of that, they’ve been building out a data center business. The idea is that this could become a second major source of income. It sounds like a win-win, but it could also turn into a lose-lose situation if crypto prices take a dive while their infrastructure spending keeps going up. In their full-year 2025 results, Galaxy reported a net loss of $482 million for the fourth quarter, with earnings per share coming in negative. That’s a pretty significant hit and can really shake investor confidence.
The hopeful part of their story is the data center build. Reports suggest they’re aiming to provide a good chunk of capacity to a company called CoreWeave in the first half of 2026, and they have plans for even more. But the downside is clear: if the crypto market stays cold, the losses could keep piling up, and this tech stock could get ugly fast. It’s a bit like Morgan Stanley’s research points out, these themes can shift. So, could these stocks still be worth buying? Maybe, but only for the right investor. Lightspeed could work if you believe in their turnaround plan. Galaxy might be an option if you want a more direct bet on crypto combined with a real move into infrastructure. It’s important to remember that these kinds of investments, while potentially rewarding, require careful consideration and aren’t for everyone, especially if you’re just trying to protect your savings.
Identifying Undervalued Tech Stocks for Long-Term Gains
The Importance of Diversification in U.S. Markets
Look, nobody wants to put all their eggs in one basket, right? It’s just common sense. When it comes to investing, especially in the fast-moving tech world, spreading your money around is super important. Sticking to just U.S. stocks gives you a good shot at tapping into the biggest economy out there. It’s like having a diverse menu to choose from instead of just one dish. This way, if one part of the market hits a rough patch, your whole investment doesn’t go down with it. It’s a solid way to lower your overall risk and give your money room to grow across different companies and industries.
Analyzing Key Financial Metrics for Undervalued Tech Stocks
So, how do you actually spot these hidden gems? It’s not just about picking a company because it sounds cool. You’ve got to look at the numbers. Think of it like checking the ingredients before you bake something. A few things to keep an eye on:
- Price-to-Earnings (P/E) Ratio: This tells you how much investors are willing to pay for each dollar of a company’s earnings. A lower P/E can sometimes mean a stock is cheaper relative to its profits.
- Price/Earnings-to-Growth (PEG) Ratio: This takes the P/E ratio and divides it by the company’s expected earnings growth rate. A PEG ratio below 1 is often seen as a sign that a stock might be undervalued.
- Revenue and Earnings Growth: Are sales going up? Is the company making more money year after year? Consistent growth is a good sign, even if the stock price hasn’t caught up yet.
- Cash Flow: Does the company generate enough cash from its operations? Positive cash flow is like the lifeblood of a business.
It’s not about finding a stock that’s cheap for no reason. It’s about finding a solid company whose stock price just hasn’t caught up to its actual performance or future potential yet.
Strategies for Investing in Growth Potential
Once you’ve identified some potential candidates, what’s the next step? It’s about having a plan. Investing for the long haul means you’re not trying to get rich quick. You’re looking for companies that can keep growing and performing well over years, not just weeks or months.
- Think Long-Term: Don’t get spooked by daily market ups and downs. If you believe in the company’s story and its numbers, hold on.
- Dollar-Cost Averaging: Instead of investing a lump sum all at once, consider investing a fixed amount regularly. This can help smooth out the impact of market volatility.
- Reinvest Dividends: If the company pays dividends, reinvesting them can help your investment grow faster over time through compounding.
Remember, finding undervalued stocks is a bit like being a detective. You need to do your homework, look beyond the hype, and focus on the companies that have a real plan and the numbers to back it up. The goal is to buy solid businesses when they’re trading for less than they’re really worth.
Wrapping It Up
So, there you have it. We’ve looked at a few tech companies that seem to be flying under the radar right now, but could really take off by 2026. It’s easy to get caught up in the hype around the biggest names, but sometimes the real opportunities are in the places people aren’t looking as closely. Remember, investing always has risks, and what looks good today might change tomorrow. Do your own homework, don’t just jump in because someone on the internet said so, and think about what makes sense for your own money goals. Happy investing!
Frequently Asked Questions
What makes a tech stock ‘undervalued’?
A stock is considered undervalued when its price doesn’t seem to match the company’s actual worth or its potential to make money in the future. Think of it like finding a cool toy on sale – it’s a good deal because you’re getting more than you’re paying for.
Why is AI infrastructure important for tech stocks?
AI needs powerful computers and chips to work. Companies that build these ‘brains’ and the systems that connect them are like the builders of a new city. They are super important because they help make all the new AI stuff possible, and that can make them valuable.
What is ‘agentic AI’ and why is Salesforce involved?
Agentic AI is like a smart helper that doesn’t just answer questions but can also do tasks for you. Salesforce is working on this because they have a lot of information about customers, and they want to use that information to help these AI helpers do their jobs better and more reliably.
What does ‘communications infrastructure’ mean for stocks?
This refers to the physical stuff that lets us connect and talk to each other, like internet cables, cell towers, and Wi-Fi systems. Companies that build and manage this infrastructure are essential because everyone needs to stay connected, especially as more things go online.
Are stocks in areas like crypto and data centers risky?
Yes, these areas can be a bit like a rollercoaster. Cryptocurrencies can change in value very quickly, and building data centers costs a lot of money. Companies involved in both might do very well if both parts succeed, but they could also face big problems if one or both don’t work out as planned.
How can I find good tech stocks for the long run?
To find good long-term investments, look at companies that are growing steadily, have smart plans for the future, and aren’t too expensive right now. It’s also smart to spread your money across different types of companies so you don’t lose everything if one area has trouble.
