2 Cheap Tech Stocks to Buy Right Now

Finding a cheap technology stock worth buying right now isn't an easy task. The S&P 500 (SNPINDEX: ^GSPC) has gained 35% over the past 12 months, as of this writing (Nov. 7), and much of that growth has been fueled by gains in the tech sector.

But there are still some relatively good deals out there, and I think the following two relatively inexpensive tech stocks are worth buying right now. Here's why.

1. Apple

Apple (NASDAQ: AAPL) is easily overlooked today among much flashier tech stocks. Still, it deserves a spot on this list because its shares are trading at a forward price-to-earnings ratio of 29, which is cheaper than the broader technology sector's average P/E ratio of 33.

But why Apple right now? The company continues to put up solid financial results and it's moving further into artificial intelligence (AI), which could be a boon to its iPhone sales.

The company recently reported its fourth-quarter (ended Sept. 28) financial results, in which revenue rose 6% to $96.4 billion, eking past analysts' consensus estimates. Plus, adjusted earnings per share were $1.64, beating Wall Street's expectation of $1.60 per share.

The main headline for Apple in the quarter was that iPhone revenue rose by 6%, showing solid demand for the company's latest iPhone 16 lineup. More importantly, Apple just released a new update to its iOS software to include its new Apple Intelligence, the company's name for its artificial intelligence.

While it's a modest push into AI right now, Apple has plans to add more features in the coming months, including integrating ChatGPT with Siri. An ongoing rollout of AI features is expected to help generate an upgrade cycle among consumers, with Counterpoint Research estimating that 50 million iPhone 12 users are eager for an upgrade.

With Apple's relatively inexpensive shares compared to the broader tech sector, investors may want to consider buying into this tech giant before the company benefits from a boom in AI smartphone demand, which could equal 912 million smartphones by 2028, according to IDC.

2. Alphabet

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) was largely caught flatfooted when OpenAI's ChatGPT burst onto the scene two years ago. However, since then, the company has implemented new AI services and features that prove Alphabet is nowhere near done competing in the tech space.

For starters, Alphabet rolled out new AI responses in its search results and added its Gemini AI features to its suite of Google Workspace products. Management said on the company's third-quarter (which ended Sept. 30) earnings call that all seven of the company's core products and platforms now use Gemini models, reaching more than 2 billion monthly users.

Of course, AI isn't Alphabet's only opportunity. The company's Google Cloud is the third-largest cloud provider (after Amazon and Microsoft), and the latest quarterly financial results show impressive growth for the business. Google Cloud sales rose 35% from the year-ago quarter to $11.4 billion.

Alphabet's overall financial results were also impressive in the quarter, with revenue increasing 15% to $88.3 billion and earnings per share (EPS) spiking 37% to $2.12. One driving factor behind the growth has been YouTube's subscription and ad revenue, which surpassed $50 billion in the combined past four quarters.

You'd think that investing in a tech giant that's at the forefront of AI and has proven cash-generating ad and subscription video services would be expensive, but Alphabet's current price-to-earnings ratio is just 22.7 , far below the S&P 500's current P/E of 27.8.

Alphabet may not seem as exciting as other AI plays, but it has already integrated AI into many of its products and services, continues to benefit from its dominance in the tech space, and its shares are relatively cheap. All of this makes for a compelling buying opportunity.

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:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $23,446!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,982!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $428,758!*

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

See 3 “Double Down” stocks »

*Stock Advisor returns as of November 4, 2024

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. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Microsoft. 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.