In this article, we explore the 13 Best Affordable Tech Stocks to Buy Right Now.
The technology sector has been the powerhouse of the US equity market for the past several years, but signs of fatigue are emerging. Data shows that although the broad market has seen modest gains, tech heavy indexes have lagged.
Interestingly, not all tech companies have underperformed. In fact, a Barron’s analysis found a sharp divergence. Since January 28, when Microsoft’s earnings report kicked off a wave of selling in tech, said Barron’s, the sector has declined about 6%.
However, Barron’s noted that this route has been concentrated almost entirely in the largest technology companies. For instance, the equal-weighted S&P 500, which treats all stocks equally regardless of market capitalization, has risen about 5.4% year-to-date and closed at a record on February 6, said Barron’s. Contrarily, the capitalization-weighted S&P 500 is up just 1% for the year.
“The market’s character already had undergone a significant transformation, one that resembled what followed the dot-com boom at the end of the last century: Technology stocks ceded their leadership to a broader swath of the market,” wrote Randall Forsyth in Barron’s.
The pressure on the tech giants stems from unprecedented artificial-intelligence capex. For context, just three Magnificent 7 companies have outlined plans to spend a combined $660 billion on AI build-out in 2026. This is a 60% rise from their 2025 spending, according to the Financial Times.
This reality has worried Michiel Plakman, head of global equity at Robeco, who told the FT: “We are worried in places where we see huge increases in spending but we cannot see what the pay-off is going to be.”
Against this backdrop, affordable tech stocks, those trading at more modest valuations below the mega-cap tier, present a compelling opportunity. In fact, according to Morningstar, the median US tech stock is currently undervalued; the sector was trading at a 16% discount to fair value as of late January. This article highlights some of these affordable tech stocks positioned to benefit as market leadership broadens beyond the Magnificent 7.
Source: Pixabay
Our Methodology
For our list of the best affordable tech stocks to buy right now, we used the Finviz stock screener to identify US-listed tech stocks with P/E ratios under 20. We then shortlisted the 11 best names by looking at their upside potential and selected the stocks with the highest upside. We also considered institutional conviction based on hedge fund holdings as of Q3 2025. The stocks are ranked from the lowest to the highest upside potential.
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).
Note: The stock’s upside potential and Forward P/E data are as of February 8, 2026.
Best Affordable Tech Stocks to Buy Right Now
13. Infosys Limited (NYSE:INFY)
Forward P/E: 19.46
Upside Potential: 21.30%
Number of Hedge Fund Holders: 29
Infosys Limited (NYSE:INFY) is one of the best affordable tech stocks to buy right now. On January 27, Infosys Limited (NYSE:INFY) entered into a collaboration with Cursor, an artificial-intelligence-powered development platform, to accelerate AI adoption in software engineering for global enterprises.
According to the press release, the partnership will establish a dedicated Center of Excellence, or CoE, that will serve as a hub for developing AI-native products. The CoE will integrate Cursor’s enterprise-grade, AI-assisted development capabilities with Infosys Topaz Fabric. The latter is Infosys’ agentic services suite that unifies infrastructure, models, data, applications, and workflows into a single ecosystem. The goal is to help enterprises accelerate the development of AI-native products and modernize complex enterprise systems with greater speed, consistency, and quality, said Infosys.
Separately, on January 15, TD Cowen’s Bryan Bergin maintained a Hold rating on Infosys stock and raised the price target to $18 from $17. Bergin also updated his financial model to reflect an improved growth outlook for the company following recent guidance revisions.
Bergin’s action followed Infosys’ better-than-expected Q3 revenue, which the analyst cited as the key factor. Other factors backing up his action are large deals and a continued healthy pipeline, said the analyst. He added that Infosys’ implied Q4 2026 exit rate of approximately 5% supports growth acceleration in FY27. The analyst expects Street estimates to move higher following the results.
Infosys Limited (NYSE:INFY) is a global IT services and consulting company headquartered in Bengaluru, India. The company has operations spanning more than 50 countries where it specializes in digital transformation, cloud services, artificial intelligence, and business process outsourcing.
12. Gartner, Inc. (NYSE:IT)
Forward P/E: 12.08
Upside Potential: 21.99%
Number of Hedge Fund Holders: 42
Gartner, Inc. (NYSE:IT) is one of the best affordable tech stocks to buy right now. On February 6, Truist Securities sharply lowered its price target on Gartner, Inc. (NYSE:IT) to $170 from $300 while maintaining a Buy rating. The downgrade followed weaker-than-expected fourth-quarter contract value (CV) results and muted 2026 guidance, suggesting a slower recovery than previously anticipated.
Analyst Jasper Bibb highlighted that Gartner’s management continues to face a difficult selling environment for its research and advisory services and noted that recent broad changes to its Insights product offering contributed to the reduced target, even as the firm maintained a positive long-term outlook.
That same day, BMO Capital also cut its price target on Gartner to $188 from $258, maintaining a Market Perform rating. Gartner’s shares have been under heavy pressure, dropping 27.47% in the past week and 71.55% over the last year.
BMO pointed out that while Gartner delivered a margin-driven earnings beat aided by share buybacks, contract value growth remains challenged by federal government customer churn and a tough sales environment. The company’s aggressive repurchase program has supported earnings per share of $11.54 and a P/E ratio of 13.73, but CV growth remains the key concern.
Management has outlined a four-dimensional process to reinvigorate contract value growth, though BMO noted it may take a couple of years to see full benefits. Gartner’s 2026 guidance was described as “at least” in line but lighter than consensus expectations, with management anticipating acceleration in CV growth later in the year. BMO reduced its estimates alongside the price target cut, marking another downward revision for the research and advisory firm as it works through a challenging environment.
Gartner, Inc. (NYSE:IT) is a global research and advisory firm operating across the United States, Canada, Europe, the Middle East, Africa, and other international markets. The company conducts its business through three segments: Research, Conferences, and Consulting.
