3 Cheap Tech Stocks to Buy Right Now

When investors hear the phrase "cheap tech stocks," they might assume these are shares that have been left behind by the industry. Indeed, that is likely true with many technology companies whose heydays have come and gone.

Still, there are some investment theses that remain intact even as tech enterprises face a variety of near-term challenges. These companies offer an opportunity for investors looking for high-quality stocks -- some of them at discounted valuations.

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Here are three tech stocks that offer investors potential opportunities for outsize returns.

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Taiwan Semiconductor

Taiwan Semiconductor Manufacturing (NYSE: TSM) -- also known as TSMC -- has attracted attention as the world's largest and most advanced semiconductor foundry. It manufactures chips designed by Apple, Nvidia, Advanced Micro Devices, and other tech giants. Thanks to its technical lead, it claims a 68% market share, according to TrendForce.

So strong is its financial performance that first-quarter revenue surged 42% higher to almost $26 billion from the year-ago quarter. While expenses also rose significantly during that time, net income increased 60% to $11 billion over the same period.

Given this trend, it will likely not surprise investors to know that TSMC stock is near all-time highs. Overall, the stock price rose by around 20% over the past year.

Amid its growth , its price-to-earning ratio stands at 27. While that is close to the S&P 500 average P/E ratio of 29, that earnings multiple is arguably cheap when also factoring in the aforementioned 60% increase in net income.

Admittedly, concerns about most of its foundries being located in the geopolitically contentious location of Taiwan may concern some investors. However, both the U.S. and China need its chips, reducing the likelihood of an attack. When also considering the artificial intelligence (AI)-driven demand and the reasonable P/E ratio, investors are highly likely to beat the market with TSMC stock.

Adobe

Adobe (NASDAQ: ADBE) first came into existence in 1982, and its software has long been a fixture in the tech industry.

Investors likely know it best for its Acrobat PDF software and other products that are part of its Creative Cloud, such as Photoshop and Illustrator. The segment managing those products accounted for just under 75% of Adobe's revenue in the second quarter of its fiscal 2025 (ended May 30). Also, with these products having existed for decades, it has built a loyal user base.

Most of its remaining revenue comes from its Experience Cloud. This offering entails a suite of cloud-based services for business customers that leverage advertising, marketing, analytics, and commerce to offer personalized experiences to one's customer base.

Both segments continue to grow yearly revenue in the low double digits. Nonetheless, competing products could pressure Adobe's growth, and more investors appear skeptical of its ability to monetize Firefly, its suite of generative AI models and tools.

All in all, Adobe's $5.9 billion in revenue for fiscal Q2 rose 11% compared to the same quarter last year. Still, expense growth closely approximated that of revenue And net income grew by just 8% to $1.7 billion due to higher interest expenses and lower non-operating income.

Investor concerns seemed to be influencing Adobe stock more than its financial growth, as the shares have fallen by almost 30% over the past year.

Still, investors should note that Adobe sells at 24 times earnings, its lowest P/E ratio since the early 2010s. Given that valuation and the continuing popularity of its products, investors may find opportunity by buying at these levels.

Qualcomm

Qualcomm's (NASDAQ: QCOM) challenges in recent years have probably dampened investor sentiment toward the stock. The company has depended heavily on China, and tenuous U.S.-China relations could put the company in a weakened position. Moreover, Apple has begun producing smartphone chipsets in-house, which probably means it will lose this major client.

However, Qualcomm has long worked to reduce its dependence on smartphones, pivoting into the Internet-of-Things (IoT), automotive, PC chips, and data centers. That approach has shown signs of early success.

In its fiscal 2025's second quarter (ended March 30), annual revenue for the IoT and automotive segments increased by 27% and 59%, respectively. That is far above the 12% revenue increase in handsets, though that segment still accounts for 63% of Qualcomm's revenue.

Additionally, after falling as recently as fiscal 2023, overall revenue rose 17% to year over year to just under $11 billion in the fiscal second quarter. Qualcomm also kept cost and expense increases in check, resulting in fiscal Q2 net income of $2.8 billion, a 21% increase over the same period.

Even with these financial improvements, the company's struggles have weighed on the semiconductor stock, leading to Qualcomm shares falling by around 33% over the past year.

Nonetheless, considering the P/E ratio of 15, its valuation likely accounts for Qualcomm's challenges. As the company's other segments become more of a catalyst for the company, Qualcomm stock should surge in the coming years.

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Will Healy has positions in Advanced Micro Devices and Qualcomm. The Motley Fool has positions in and recommends Adobe, Advanced Micro Devices, Apple, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.