2 No-Brainer Tech Stocks to Buy Right Now

Technology has become the backbone of how businesses operate, and it's going to keep trending in that direction. Artificial intelligence (AI) is accelerating the digitization of the economy, creating opportunities for investors who focus on businesses with durable advantages.

Here are two top tech stocks positioned in the middle of this shift. Both offer a compelling mix of strong earnings growth potential and reasonable valuations, which could make them rewarding investments.

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1. Alphabet (Google)

Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google is one of the world's most valuable brands. If Gmail, Google Search, and YouTube suddenly vanished, it would disrupt millions of daily routines. The stock's forward price-to-earnings multiple of 26 isn't cheap, but it's reasonable for a company growing earnings at double-digit rates with a wide competitive moat.

That mix of daily utility and durable growth potential makes the stock compelling, especially as other companies are now turning to Google to use its leading AI technology. Apple recently selected Google's Gemini and cloud technology to power future Apple Intelligence features and the Siri voice assistant.

Alphabet still generates most of its revenue from advertising, leaving it exposed during recessions and ad-spend slowdowns. That vulnerability contributed to the stock falling 39% in 2022 -- a risk investors should be ready for.

However, Alphabet is building lucrative revenue streams outside of advertising. Google Cloud now accounts for 15% of the business, and the cloud segment's operating profit more than doubled last year. The company also has 325 million subscribers across Google One, YouTube Premium, and other services, adding high-margin, recurring revenue and reducing reliance on advertising.

Overall, Alphabet stock offers solid return prospects, with analysts forecasting annualized earnings growth of 15% in the coming years. Over time, that should translate into meaningful compounding gains for long-term investors.

2. Marvell Technology

The buildout of AI infrastructure requires components such as interconnect cables, switches, and custom silicon. This is Marvell Technology's (NASDAQ: MRVL) wheelhouse, and it just reported record revenue. Analysts are modeling 41% annualized earnings growth through fiscal 2029. Yet the stock trades at a forward price-to-earnings (P/E) multiple of 23.

Marvell reported a 42% year-over-year increase in revenue for fiscal 2026 (which ended in January), driven by robust demand for AI. Data center sales made up nearly three-quarters of the business, making the stock a solid pick-and-shovel play on infrastructure spending. The recent acquisitions of Celestial AI and Xconn bolster Marvell's opportunity in the $10 billion scale-up interconnect market.

Its PEG ratio (forward P/E divided by expected earnings growth) is 0.5, which is usually considered attractive for a growth stock. The market may undervalue Marvell's leading position in supplying these mission-critical components for data centers. Management expects another strong year of growth, with revenue accelerating each quarter.

There is always the risk of a slowdown in data center spending, as noted by the Motley Fool's research, and that might be why the stock is offering such a favorable valuation. But that also opens the possibility of extraordinary returns if AI is still in the early innings of a multiyear buildout, as some investors predict.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Marvell Technology and is short shares of Apple. The Motley Fool has a disclosure policy.