5 Most Undervalued Tech Stocks to Buy Right Now

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1. DXC Technology Company (NYSE:DXC)

Forward P/E: 3.75

On May 14, 2026, Morgan Stanley analyst James Faucette lowered the price target on DXC Technology Company (NYSE:DXC) to $9 from $15. The analyst maintained an “Equal Weight” rating on the shares.

On May 7, DXC Technology Company (NYSE:DXC) had Q4 fiscal 2026 revenue of $3.13 billion, down by 1.2% YoY and 6.6% organically, while bookings reached $3.3 billion. CEO Raul Fernandez said the company “delivered another quarter of strong free cash flow with adjusted EBIT margin ahead of our expectations, while our top line performance fell short.” The CEO also pointed out its artificial intelligence-based orchestration platform, OASIS, alongside Core Track and Fast Track initiatives.

The corporation also reported Q4 diluted EPS of $0.84, down 158.7% year over year. Non-GAAP EPS came in at $0.77, down 8.3%, with adjusted EBIT margin at 7.6% and EBIT margin at (1.2)%. Meanwhile, free cash flow was $110 million in Q4 and $713 million for fiscal 2026, up 3.8% year over year, even though full-year revenue declined 1.8% to $12.64 billion.

DXC Technology Company (NYSE:DXC) is a firm that provides technology services. It operates through the Global Business Services and Global Infrastructure Services segments.

While we acknowledge the potential of DXC 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 DXC and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 8 Most Undervalued AI Stocks to Buy According to Hedge Funds and 10 Best Russell 2000 Stocks to Invest In According to Hedge Funds.

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