In 2023, the tech-heavy Nasdaq Composite experienced a dramatic increase of 43%, leading to an overall resurgence in the technology industry. Despite the impressive performance of many tech stocks, a number of value stocks in the technology sector retained their affordability. This presents an opportunity for investors seeking to add tech stocks to their portfolios without breaking the bank.
One such affordable tech stock is Alphabet, the parent company of Google. Despite concerns regarding the company’s future role in tech due to the emergence of a new generative AI tool from OpenAI, Alphabet has introduced its own competing generative AI tool called Gemini. With $120 billion in liquidity and a P/E ratio of 27, Alphabet remains a compelling buy as it continues to innovate and attract AI investors. Additionally, Intel, another value stock in the technology sector, has shown promise in regaining its competitive edge with the introduction of new processors and the positive turn of free cash flow, presenting an appealing investment opportunity.
In addition to Alphabet and Intel, other tech stocks such as IBM, PagSeguro, and Verizon also offer value and potential for significant returns. IBM’s strategic redefinition as a cloud and supercomputing company, PagSeguro’s unique financial product offering, and Verizon’s vital network infrastructure position in the U.S. communications landscape, all demonstrate the potential for market-beating returns. Moreover, with affordable prices and positive catalysts for growth, these value tech stocks are worthy of consideration by investors looking to capitalize on the industry’s resurgence.