2 Cheap Tech Stocks I'm Buying Right Now

Market headwinds have rarely felt this intense. With international tensions reaching critical levels, trade networks under severe pressure, and inflation's relentless grip on consumer spending power, investors face a genuinely challenging landscape.

Yet, amid the volatility lies opportunity. After a punishing first quarter that erased most of late 2024's impressive gains, we're witnessing something not seen since late 2022: substantial value in a host of world-class companies. As markets continue their downward trajectory in early 2025, several premier businesses now trade at significant discounts to their long-term potential.

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I'm using this opportunity to load up on two deeply undervalued tech giants. Here's why.

Nvidia: The backbone of AI at a rare discount

Nvidia (NASDAQ: NVDA) is the world's leading designer of specialized computer chips that power everything from gaming graphics to the most advanced artificial intelligence (AI) systems. Originally known for creating graphics processing units (GPUs) for video games, the company has transformed into the essential hardware provider for the AI revolution.

Since the start of 2025, Nvidia shares have retreated significantly, now sitting 27% below their 52-week high at the time of this writing. This pullback has compressed the chipmaker's valuation to just 24 times forward earnings, half of where it stood at the close of 2024. For a company in the process of extending its already commanding lead in AI infrastructure, this setup represents a compelling entry point, in my view.

NVDA PE Ratio (Forward) data by YCharts.

The recent Graphics Technology Conference (GTC) reinforced my conviction in Nvidia's long-term trajectory. Despite growing competition, the company continues extending its technological advantage with an impressive three-year GPU roadmap spanning from this year's Blackwell Ultra through 2027's Rubin Ultra architecture. CEO Jensen Huang notably confirmed that the "vast majority" of AI inference still runs on Nvidia hardware today.

While tech giants are undoubtedly developing in-house alternatives, Nvidia's proprietary Compute Unified Device Architecture (CUDA) software ecosystem creates substantial switching costs that protect its market position. The combination of industry-leading hardware and this software moat has established Nvidia as the critical infrastructure provider for AI development, precisely when AI investment continues accelerating across industries.

What's the investing takeaway? I think the chipmaker's current valuation presents a rare opportunity to acquire shares in what remains the most crucial company in computing's next paradigm. As a result, I'm steadily increasing my position in this core AI stock while this disconnect between price and potential persists.

Alphabet: Powering the digital economy

The digital revolution has a clear cornerstone in Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Through its flagship Google search engine, YouTube video platform, and expanding cloud infrastructure, this tech behemoth continues shaping how information flows across the global economy.

Even so, market turbulence hasn't spared this giant. Alphabet's stock has tumbled 28% from its 52-week high since the start of 2025. I view this sharp pullback as a rare buying opportunity in this high-quality name, with shares now priced at just 17.8 times forward earnings, significantly below the S&P 500's 20 times forward multiple.

GOOG PE Ratio (Forward) data by YCharts.

What makes this valuation particularly compelling is Alphabet's positioning across multiple high-growth sectors. The company leverages its search dominance to fuel its advertising business while simultaneously expanding its footprint in cloud computing. Moreover, its Google Cloud Platform keeps gaining momentum against larger rivals Amazon and Microsoft.

Another important catalyst is the proposed acquisition of cloud security company Wiz for approximately $32 billion, potentially enhancing its cloud security offerings. Though regulatory scrutiny remains a concern, such a strategic acquisition would strengthen Alphabet's competitive position in the fast-growing enterprise cloud market.

What are the key risks? Critics worry about antitrust pressures on Google's core search business. However, most analysts believe any regulatory outcomes would still leave Alphabet with tremendous market influence in digital advertising. Meanwhile, the company is pouring substantial resources into AI to protect its search advantage and create new revenue opportunities, particularly in advanced robotics.

With its diversified business model, strong cash generation, and strategic investments across cloud and AI, Alphabet represents a foundational technology holding at an attractive valuation. Thus, I view the current market weakness as an ideal moment to establish a meaningful position in this enduring tech leader.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $285,647!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,315!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $500,667!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

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*Stock Advisor returns as of April 1, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. George Budwell has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.