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.
8. Kyndryl Holdings, Inc. (NYSE:KD)
FWD P/E Ratio: 11.65
Number of Hedge Funds: 24
Kyndryl Holdings, Inc. (NYSE:KD) is one of the Most Undervalued Tech Stocks to Buy in 2026. On January 13, Kyndryl Holdings, Inc. (NYSE:KD) announced its multi-year partnership with Wayne State University. The partnership aims to create a research hub and pilot factory at Wayne State’s engineering college in Detroit.
Management noted that once the research hub has been established, it will test AI-driven manufacturing tech using advanced AI, hands-on training, and automation to modernize factories. Management also noted that Kyndryl Holdings, Inc. (NYSE:KD), along with its partner, will build intelligent and agentic AI for autonomous manufacturing, including modular assembly lines that cut waste, boost quality, and give workers real-time data.
That said, Kyndryl Holdings, Inc. (NYSE:KD) is set to release its fiscal Q3 2026 results on February 4. Wall Street expects the company to post a revenue of roughly $3.89 billion, along with a GAAP EPS of $0.47. Moreover, analysts are also bullish with their 12 month price target reflecting 38.83% upside from the current level.
Kyndryl Holdings Inc. (NYSE:KD) is an IT infrastructure services provider, spun off from IBM, that designs, builds, manages, and modernizes complex, mission-critical technology systems. It helps enterprises adopt, manage, and scale AI solutions through consulting services, its proprietary Agentic AI Framework, and strategic partnerships.
7. DXC Technology Company (NYSE:DXC)
FWD P/E Ratio: 4.76
Number of Hedge Funds: 25
DXC Technology Company (NYSE:DXC) is one of the Most Undervalued Tech Stocks to Buy in 2026. On January 7, DXC Technology Company (NYSE:DXC) launched AMBER, which is a new automotive software platform.
Management noted that the system is designed to enhance in-vehicle infotainment systems made by the company’s DXC Luxoft. The system uses embedded AI to simplify development for automakers. It also helps in cutting costs, speeding up launches, and enabling personalized driver experiences. The platform was released at CES 2026, where the management highlighted that AMBER allows automakers to decrease development time by 50%. Moreover, the standardized approach also results in 30% cost savings. Lastly, management highlighted that the platform has been developed in partnership with leading players in the industry. Therefore, AMBER offers modular software components with ready-to-use services.
That said, DXC Technology Company (NYSE:DXC) is expected to release its fiscal Q3 2026 results on January 29. Management expects revenue in the range of $3.18 billion and $3.22 billion, ahead of the Wall Street estimates of $3.18 billion.
DXC Technology Company (NYSE:DXC) is a global provider of IT services and solutions, specializing in digital transformation, IT modernization, cloud computing, cybersecurity, analytics, and business process outsourcing.
6. Dropbox, Inc. (NASDAQ:DBX)
FWD P/E Ratio: 9.44
Number of Hedge Funds: 31
Dropbox, Inc. (NASDAQ:DBX) 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 $35 price target. Earlier on December 19, Steve Enders from Citi reiterated a Hold rating on the stock with a $30 price target.
Analysts at RBC Capital expect 2026 to be the year when AI will become a tailwind for companies well prepared to adopt it into their enterprise solutions. The firm believes that Dropbox, Inc. (NASDAQ:DBX) is well-positioned against its peers due to its AI adoption, as the peers remain pressured by the “AI is the death of software” narrative. Moreover, RBC also highlighted that the company’s enterprise spending now appears to be more stabilized as generative AI is driving innovation.
That said, Dropbox, Inc. (NASDAQ:DBX) is expected to release its fiscal Q4 2025 results on February 20. Wall Street estimates revenue around $627.83 million, along with a GAAP EPS of $0.39.
Dropbox Inc. (NASDAQ:DBX) is a cloud-based platform for file storage and collaboration, allowing users to store, sync, and share files across multiple devices. It offers productivity solutions for individuals and businesses, including Dropbox Paper, HelloSign, and integrations with third-party applications.
5. Science Applications International Corporation (NASDAQ:SAIC)
FWD P/E Ratio: 11.27
Number of Hedge Funds: 31
Science Applications International Corporation (NASDAQ:SAIC) is one of the Most Undervalued Tech Stocks to Buy in 2026. On January 13, John Godyn from Citi maintained a Buy rating on the stock and raised the price target from $122 to $133. Earlier, on December 8, analyst Gavin Parsons from UBS reiterated a Hold rating on the stock, while maintaining a $113 price target.
Analysts at Citi noted that the improved price target reflects the firm’s outlook for the aerospace and defense sector. The firm expects the momentum to continue during the first half of 2026. On the other hand, UBS noted that they acknowledge the efforts of Science Applications International Corporation (NASDAQ:SAIC) to improve its performance. The firm highlighted that these efforts are visible in the company’s fiscal Q3 2026 backlog, showing a 6% growth year-over-year, along with a 1.2X last-twelve-months book-to-bill ratio. However, UBS noted that the company’s funded backlog continued to decline year-over-year.
That said, Science Applications International Corporation (NASDAQ:SAIC) released its fiscal Q3 2026 earnings on December 4, 2025. The company posted an EPS of $2.58, surpassing estimates by $0.43. Moreover, the revenue fell 5.57% year-over-year to $ 1.87 billion and fell slightly short of the expectations by $1.88 million. Management noted that despite the contraction, the revenue came in slightly ahead of its guidance. Moreover, the company highlighted that the contraction was mainly due to the government shutdown.
Science Applications International Corporation (NASDAQ:SAIC) is a technology integrator delivering full lifecycle engineering, IT, and professional services primarily to US government clients in defense, intelligence, space, and civilian sectors.
4. Vontier Corporation (NYSE:VNT)
FWD P/E Ratio: 12.12
Number of Hedge Funds: 32
Vontier Corporation (NYSE:VNT) is one of the Most Undervalued Tech Stocks to Buy in 2026. Wall Street is bullish on Vontier Corporation (NYSE:VNT) as the company gets close to releasing its fiscal Q4 2025 results on February 12. Analysts’ 12 month price target suggests more than 17% upside from the current levels.
Recently, on January 7, Julian Mitchell from Barclays reiterated a Buy rating on the stock with a price target of $47. Earlier on December 4, John Eade from Argus Research also reiterated a Buy rating on the stock with a $47 price target.
Analysts at Argus noted that the recent weakness in stock prices offers a strong buying opportunity. The firm highlighted that the company is working towards diversifying its business through acquisitions, which are expected to support its electric-vehicle charging infrastructure and smart energy management. Moreover, the demand for the company’s products has also started to pick up.
Looking ahead, management expects to post Q4 2026 revenue in the range of $760 to $770 million, along with adjusted operating profit margin expansion of 20bps to 60bps year-over-year.
Vontier Corporation (NYSE:VNT), a Fortive Corporation spinoff, is a technology company that manufactures and distributes automotive repair equipment, as well as equipment and software for fueling services and electric vehicle charging.
3. Arrow Electronics, Inc. (NYSE:ARW)
FWD P/E Ratio: 11.36
Number of Hedge Funds: 34
Arrow Electronics, Inc. (NYSE:ARW) is one of the Most Undervalued Tech Stocks to Buy in 2026. On January 13, Arrow Electronics, Inc. (NYSE:ARW) announced its partnership with .lumen, a Romanian startup, to scale the production of glasses for the blind.
Management noted that these glasses act like a guide dog and incorporate AI, cameras, and haptic feedback. This allows visually impaired users navigate independently by detecting obstacles and providing vibration-based directions. Management further highlighted that the six-camera setup scans environments in real-time, identifying safe paths without cloud reliance. Moreover, the edge computing approach ensures ultra-low latency, critical for dynamic settings including busy streets.
These glasses were showcased at CES 2026. As part of the partnership, Arrow Electronics, Inc. (NYSE:ARW) will provide support for sourcing components and provide engineering optimization, inventory management, cost control, and performance enhancements.
In other news, on December 19, William Stein from Truist Financial reiterated a Hold rating on the stock with a $120 price target.
Arrow Electronics, Inc. (NYSE:ARW) sources and engineers technology for manufacturers, service providers, and enterprise computing users worldwide.
2. HP Inc. (NYSE:HPQ)
FWD P/E Ratio: 6.78
Number of Hedge Funds: 42
HP Inc. (NYSE:HPQ) is one of the Most Undervalued Tech Stocks to Buy in 2026. On January 13, Mike Ng from Goldman Sachs downgraded HP Inc. (NYSE:HPQ) from Hold to Sell and lowered the price target from $24 to $21.
The firm downgraded the stock, noting concerns regarding pressures affecting the company’s PC margins and slowing demand. Although Goldman Sachs sees HPQ as a leading company that aims to return 100% free cash flow to shareholders. The firm also likes the company’s ability to protect its market share for both its segments. Regardless, Goldman Sachs noted that the increased exposure of the company in the PC market reflects downside risk for HPQ’s 2026 and 2027 estimates.
That said, on January 6, HP Inc. (NYSE:HPQ) unveiled its HyperX OMEN MAX 16 gaming laptop at CES 2026. Management noted that the laptop delivers up to 300W Total Platform Power through Intel Core Ultra 200HX series processors. Moreover, it also features AMD Ryzen AI processors along with NVIDIA GeForce RTX 5090 Laptop GPU.
HP Inc. (NYSE:HPQ) is a global technology company specializing in personal computing, printing, and related services.
1. Uber Technologies, Inc. (NYSE:UBER)
FWD P/E Ratio: 13.55
Number of Hedge Funds: 143
Uber Technologies, Inc. (NYSE:UBER) is one of the Most Undervalued Tech Stocks to Buy in 2026. On January 15, Jake Fuller from BTIG reiterated a Buy rating on the stock with a $100 price target. A day earlier, on January 14, Exane BNP Paribas also initiated Uber Technologies, Inc. (NYSE:UBER) with a Buy rating and a $108 price target.
BTIG calls Uber one of the most compelling growth stories in the consumer internet segment. The firm highlighted that this sentiment is based on a combination of factors, including secular growth, margin expansion, and share buybacks. Although the firm acknowledged the expectation of mixed results for the US market, it only represents a minority segment of the company’s overall business. BTIG expects Uber Technologies, Inc. (NYSE:UBER) to deliver results with the company’s guidance and expects foreign exchange-neutral bookings at approximately 20%.
Similarly, BNP Paribas also noted the company to be a winner in the mobility and delivery segments, despite the fear of autonomous vehicles impacting Uber’s business in the long-term.
Uber Technologies, Inc. (NYSE:UBER) operates as a technology platform that offers ride services and merchant delivery service providers for food, groceries, meal preparation, and other delivery services.
While we acknowledge the potential of UBER to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UBER and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
