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Even with solid growth prospects, TSMC’s stock appears undervalued.
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Salesforce’s stock has been marked down despite the potential in agentic artificial intelligence (AI).
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Meta Platforms stands out as one of the most affordable large-cap tech stocks, bolstered by strong growth driven by AI.
Surprisingly, even with the market at its peak, there are still some stocks available at bargain prices. As technology stocks continue to rally, opportunities can still be found.
If you have $10,000 and don’t need it for emergencies or debt, it might be worth considering these stocks before their prices rise this year. Here are three inexpensive tech stocks that could yield significant returns by 2026.
Taiwan Semiconductor Manufacturing (NYSE:TSM) plays a crucial role in the AI landscape. Without its chip manufacturing expertise, the AI surge might not have gained momentum. Yet, the stock remains appealingly priced, with an expected price-to-earnings (P/E) ratio around 23x and a forward price-to-earnings-growth (PEG) ratio of 0.7, which suggests undervaluation.
TSMC effectively monopolizes large-scale AI chip production, as competitors are failing to deliver high-quality yields. Demand for TSMC’s manufacturing has led the company to announce increased capital expenditures in 2026 to expand its production capabilities. This growth also enables TSMC to exercise greater pricing power, even considering a four-year price increase plan for clients. Consequently, gross margins improved to 62.3% during the first quarter, an increase of 330 basis points.
So with a favorable outlook and solid valuation, TSMC seems like a worthwhile investment.
However, not all tech companies are benefiting from the AI boom, particularly within the Software-as-a-Service (SaaS) sector, which is currently facing disruption. There are concerns that AI may lead to reduced staff needs or compel companies to develop their own software solutions. Still, the idea that AI would fully replace established software platforms isn’t likely, and SaaS businesses will probably adapt and thrive.
Salesforce (NYSE:CRM) finds itself in the bargain zone amid these trends, trading at a forward price-to-sales multiple of just over 4.5x, with a expected P/E around 17. Despite the challenges, the company is establishing a strong foothold in agentic AI. AI agents signify a new phase in AI, aiming to create a digital workforce, but they thrive on standardized, organized data.
Salesforce’s Data Cloud (now called Data 360), which integrates data from various cloud providers, and its acquisition of data management firm Informatica position the company advantageously as the central source of data for AI applications in organizations. This unique approach should foster significant growth opportunities down the line.
As for Meta Platforms (NASDAQ:Meta), it’s one of the cheapest major tech stocks at a forward P/E of just over 18x and a PEG below 0.9. This low valuation doesn’t stem from difficulties; rather, Meta is seeing strong revenue growth driven by AI, with a 26% increase last quarter alone.
The company uses AI to enhance user experience, enabling better content recommendations and longer engagement times, which translates into increased ad revenue. Last quarter, Meta reported a 14% rise in ad impressions and a corresponding 10% uptick in ad prices.
Meta continues to make substantial investments, particularly shifting focus from its costly Metaverse initiatives towards AI, where it anticipates better returns. It’s also starting to monetize platforms like WhatsApp and Threads, which presents new growth avenues.
In short, Meta is a compelling stock to consider given its current valuation and growth potential.
Before investing in Taiwan Semiconductor Manufacturing, it’s worth reflecting on what analysts suggest.
Some have identified a range of stocks that might offer strong returns in the coming years, suggesting that now could be an opportune moment for investment.
