2 Cheap Tech Stocks to Buy Right Now

The article identifies Apple and Alphabet as relatively inexpensive tech buy candidates given their current valuations and AI-driven growth catalysts: Apple trades at a forward P/E of ~29 versus the tech sector’s ~33 and reported Q4 revenue of $96.4 billion (+6%) with adjusted EPS of $1.64, driven by a 6% rise in iPhone sales and an ongoing rollout of “Apple Intelligence” (including planned ChatGPT integration) that could spur an upgrade cycle; Alphabet trades at a P/E of ~22.7, reported Q3 revenue of $88.3 billion (+15%) and EPS of $2.12 (+37%), saw Google Cloud revenue jump 35% to $11.4 billion, and has integrated its Gemini models across core products reaching over 2 billion monthly users while YouTube monetization tops $50 billion trailing four quarters—together implying durable cash generation and AI levers that may justify share appreciation despite broader market gains.

Analysis

The market context is a strong tech-led rally: the S&P 500 has risen 35% over the past 12 months (as of Nov. 7) and the index P/E is about 27.8, yet the article identifies relative value within large-cap tech names. Apple trades at a forward P/E of 29 versus the broader technology sector's ~33, reported fiscal Q4 revenue of $96.4 billion (up 6%) and adjusted EPS of $1.64 versus a $1.60 consensus, with iPhone revenue up 6% driven by the iPhone 16 lineup.

Apple is accelerating AI integration via “Apple Intelligence,” including an iOS update and planned ChatGPT integration, which the article cites as a potential catalyst for an upgrade cycle (Counterpoint estimates ~50 million iPhone 12 users likely to upgrade; IDC projects up to 912 million AI-capable smartphones by 2028). Alphabet appears cheaper at a P/E of 22.7 and delivered Q3 revenue of $88.3 billion (+15%) with EPS of $2.12 (+37%), while Google Cloud grew 35% to $11.4 billion.

Alphabet’s AI rollout (Gemini models across seven core products reaching >2 billion monthly users) and YouTube monetization (> $50 billion trailing four quarters) underpin durable cash generation, which supports the thesis that both stocks combine valuation appeal with AI-driven growth optionality; sentiment signals are moderately positive while measured market-impact is modest (score 0.3).

Key Decisions for Investors

• Consider establishing or modestly increasing a position in Apple on pullbacks given a forward P/E of 29, recent Q4 beat (revenue $96.4B, EPS $1.64) and potential iPhone upgrade tailwinds from Apple Intelligence and planned ChatGPT integration
• Consider adding to Alphabet as a core holding or on weakness because its P/E of 22.7 belies strong Q3 results (revenue $88.3B, EPS $2.12) plus Google Cloud acceleration ($11.4B, +35%) and broad Gemini adoption (>2 billion monthly users)
• Monitor execution and adoption risks closely—track uptake and monetization of Apple Intelligence features, timing of ChatGPT integration, Gemini commercialization and Google Cloud cadence—and be ready to trim positions if these AI catalysts fail to accelerate
• Size positions conservatively relative to portfolio limits given a moderately positive sentiment backdrop and modest market-impact score; avoid over-allocating despite attractive headline valuations