In this article, we will look at the 10 Most Undervalued Tech Stocks to Buy in 2026.
On January 16, Doug Clinton, founder of Intelligent Alpha, appeared on a CNBC Television interview to discuss the technology sector and the health of the AI trade. He noted that the firm’s model view suggests that the AI trade is still alive and healthy. While discussing the recent pullback, Clinton calls it a necessary reset that was needed for some of the hottest technology names. He noted that this pullback further affirms the fact that the market is still in the very early stage of the AI infrastructure buildout.
Clinton highlighted that the big tech names are still spending huge amounts of capital expenditure on infrastructure. He noted that in 2026, the “Mag 7” is expected to spend somewhere around 35% in new capital expenditure growth. Clinton believes that this figure could go as high as 50%. He added that valuation is an important factor while investing, and the technology stocks have high valuations, particularly because they are reinvesting all the free cash flow towards infrastructure buildout. Clinton advised the investors not to overthink the valuations, but if someone is concerned about valuations, there are still some good names in the sector with cheap valuations.
With that, let’s take a look at the 10 Most Undervalued Tech Stocks to Buy in 2026.
Our Methodology
To curate the list of 10 Most Undervalued Tech Stocks to Buy in 2026, we used the Finviz Stock Screener, Seeking Alpha, and Insider Monkey’s Q3 2025 hedge funds database. Using the screener, we aggregated a list of technology stocks trading at a forward P/E of under 15. Next, we cross-checked the valuation from Seeking Alpha and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Most Undervalued Tech Stocks to Buy in 2026
10. NICE Ltd. (NASDAQ:NICE)
FWD P/E Ratio: 9.46
Number of Hedge Funds: 22
NICE Ltd. (NASDAQ:NICE) is one of the Most Undervalued Tech Stocks to Buy in 2026. On January 13, Rishi Jaluria from RBC Capital reiterated a Buy rating on the stock with a $175 price target. Earlier on January 9, Arjun Bhatia from William Blair also reiterated a Buy rating on the stock without disclosing any price targets.
Arjun from William Blair noted that he remains positive on the stock despite management expecting lower gross margins in fiscal 2026. He noted that the margins are expected to be lower due to the company’s strategic investments in cloud and AI capabilities. NICE Ltd. (NASDAQ:NICE) expects a slight 200 basis point reduction in margins. Moreover, the analyst also mentioned the company’s recent acquisition of Cognigy. He noted that the acquisition is expected to result in a lower interest income due to the cash spent on acquiring it.
However, despite these near-term headwinds, the firm anticipates the strategic investments in AI and cloud to reap benefits over time. Arjun noted that he remains confident in the company’s fundamental story and disciplined approach.
NICE Ltd. (NASDAQ: NICE) offers AI-powered cloud platforms for digital business solutions worldwide. Its services include CXone for customer experience, the Enlighten AI engine, and smart self-service solutions.
9. TaskUs, Inc. (NASDAQ:TASK)
FWD P/E Ratio: 7.33
Number of Hedge Funds: 22
TaskUs, Inc. (NASDAQ:TASK) is one of the Most Undervalued Tech Stocks to Buy in 2026. Wall Street is bullish on the stock; analysts’ 12-month price target reflects more than 42% upside from the current level.
However, recently, on December 23, Maggie Nolan from William Blair reiterated a Hold rating on the stock without disclosing any price targets. The analyst noted that the hold rating is based on some fundamental challenges faced by TaskUs, Inc. (NASDAQ:TASK), including fewer working days, margin pressure from its agentic AI consulting initiatives, and usual first-quarter seasonal weakness. As a result, the analyst revised down 2026 and 2027 earnings estimates for the company.
Regardless, Nolan believes that the company will return to growth with modest margin improvements by 2027. She added that the company has proven itself in the digital customer experience, trust and safety, and AI-related services. Moreover, she also believes that TaskUs, Inc. (NASDAQ:TASK) remains relatively strong compared to its peers. Nolan expects near-term challenges for the company, but remains optimistic regarding the long-term prospects.
TaskUs, Inc. (NASDAQ:TASK) provides outsourced digital services to high-growth technology companies. Its portfolio includes content moderation, customer support, and AI operations.
