These Are 3 of the Cheapest Stocks on the Nasdaq-100 Right Now. Are They Deals, or Is There Underlying Risk Here?

Many stocks on the Nasdaq exchange are trading at extremely high valuations. That can make picking stocks to buy there a challenge, as many of them may be due for significant corrections due to their inflated price tags. Below, however, I'm going to look at three of the cheapest stocks on the Nasdaq-100 index, which, based on their expected future profits, appear to be bargain buys, and I'll look at why they appear to be so cheap and why they may be trading at discounts.

Micron Technology (NASDAQ:MU), PDD Holdings(NASDAQ:PDD) , and Adobe (NASDAQ:ADBE) all appear to be trading at dirt cheap valuations. Are they incredible buys right now, or is there more to the story with their seeming low prices?

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Micron Technology

What's intriguing about Micron Technology is that it has generated massive gains over the past year -- up around 660%. Normally, when that happens, a stock's valuation becomes rich, and it looks to run out of room to rise higher. But with Micron, that doesn't appear to be the case. Based on analyst projections, it's trading at a forward price-to-earnings (P/E) multiple of just 6.5. By comparison, the average stock on the S&P 500 trades at a forward earnings multiple of 21. Micron, it seems, may still be due to rise higher.

Often, when this happens, investors discount the stock due to uncertainty or risk. Micron has been profiting from the shortage of memory and storage products, experiencing a surge in demand even as it has raised prices. This has historically been a cyclical market, however, and many investors may not be willing to pay a forward P/E of 20 for the stock given the danger that at some point in the future the shortage may come to an end and Micron's sales and profits tumble.

Micron may still rise higher due to the incredible growth it has been achieving, but it's by no means a risk-free investment. It's down 25% from its high, with a fair bit of profit-taking in recent months.

Although the stock may look cheap based on forward earnings, investors should tread carefully with Micron, as it's likely to continue to be volatile.

PDD Holdings

Unlike Micron, PDD Holdings' stock hasn't been taking off over the past year. Instead, it's down 26%. This Chinese-based company owns the popular Temu marketplace, known for its incredibly low-priced items. They can take over a week to ship, but customers have been willing to wait for the deals.

This was once a hot growth stock, but due to tariffs and trade tensions between the U.S. and China, investors are discounting this stock as well. There's also the issue of its slowing growth. In the first quarter of 2026, PDD's revenue rose by 11% year over year. That's good, but not exactly the explosive growth it was generating in the past; just two years ago, its revenue soared by a monstrous 131% during the same period.

The stock is trading at a forward P/E of just over eight. It's cheap, and it may prove to be a bargain buy in the long run, but the stock isn't likely to rise until and unless concern about trade goes away.

Adobe

Another stock that's down big over the past 12 months is Adobe, which has also lost 26% of its value during that stretch. Its forward P/E of nine might intrigue value investors as well.

The risk around Adobe is simple, and it relates to artificial intelligence (AI). Chatbots make it easy to create pictures, even incredibly detailed and complex ones. That's Adobe's bread and butter; in the past, someone might have needed to be an expert in Adobe Photoshop to create such masterpieces.

The disconnect is that while there is an AI risk, Adobe's sales aren't exactly falling off a cliff. In the second quarter, which ended in May, the tech company posted record revenue of $6.6 billion, up 13% year over year. The company has been incorporating AI into its products, which may be winning over customers.

However, the stock can't seem to shake the risk that this growth may not last. I'm a bit torn here because, even when Adobe was doing well and before AI, I used other software for photo editing and never quite understood why Adobe was so popular, given how expensive Photoshop was. Perhaps it does have a niche customer base that believes they need it, and that isn't willing to turn to AI.

The question for investors is whether its valuation is low enough to compensate for the uncertainty ahead. I think the tech stock may be a good contrarian buy at these levels, but there's undoubtedly risk here.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe and Micron Technology. The Motley Fool recommends Nasdaq and recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.