2 Technology Stocks That Are Screaming Deals Right Now

The tech sector has historically been the best place to find winning stocks for the long term. So far this year, the tech-focused Nasdaq Composite is up 20.4%, beating the other major indexes.

Despite that strong performance, investors can still find excellent value among some of the leading tech companies. Here are two top tech stocks trading at reasonable valuations to buy now.

Image source: Getty Images.

1. Alphabet

Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google has billions of people worldwide who use its services like Search, Gmail, and YouTube every day. It generates loads of cash from advertising revenue that is fueling investments in artificial intelligence (AI).

You would think a business in Google's competitive position would trade at more than 23 times next year's expected earnings. This is a lower price-to-earnings multiple than the S&P 500, which makes Alphabet an incredible value right now.

Its conservative valuation reflects concerns about increasing competition. More people are using AI models like OpenAI's ChatGPT, which some investors believe could be a substitute for traditional search engines like Google's. It appears OpenAI is taking aim at Google after it recently partnered with Walmart in its effort to turn ChatGPT into an intelligent shopping assistant.

But this risk might be overblown. Alphabet reported that people are searching more often since it rolled out AI Overviews last year. This has fueled strong growth in Search advertising revenue. AI is also driving strong growth in Google Cloud, with operating profit from the cloud segment more than doubling year over year in the second quarter.

The "Magnificent Seven" continue to lead the market higher, and Alphabet is one of the cheaper-priced stocks of the group on a price-to-earnings (P/E) basis.

Image source: Getty Images.

2. Dell Technologies

The market for AI-optimized servers is booming. You might know Dell Technologies (NYSE: DELL) as a PC company, but most of its revenue now comes from servers and related services. It is the leader in this market, and the stock is significantly undervaluing its future growth.

Shares trade at a below-average forward P/E of 13 on 2026 earnings estimates. Dell sweetens the deal by also paying a small dividend, with the yield currently sitting at 1.3%. That dividend reflects a consistently profitable business, which further supports the value of the stock right now.

With investment in AI accelerating among major tech companies, Dell is certainly feeling it. It has already shipped more servers in the first half of 2025 than all of last year. It ended the last quarter with an order backlog of $11.7 billion.

Management is pointing to a substantial deal pipeline that is much larger than its backlog, indicating tremendous growth ahead. Major enterprises across different sectors of the economy are turning to it to build their "AI factories."

The important advantage for Dell is that it is able to deliver cutting-edge servers with the latest AI chips very quickly. Speed is everything in the AI race, and Dell delivers, which creates close ties with large enterprises. The stock has rebounded off the April lows, but growing AI demand will likely send it higher in 2026.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Walmart. The Motley Fool has a disclosure policy.