2 Technology Stocks That Are Screaming Deals Right Now

The article identifies Alphabet and Dell Technologies as undervalued tech stocks offering significant growth potential, primarily driven by artificial intelligence. Alphabet, trading below the S&P 500's P/E, is demonstrating robust Search advertising and Google Cloud growth fueled by AI, despite competitive concerns. Dell, a leader in the booming AI-optimized server market, is positioned for substantial expansion with an $11.7 billion order backlog and strong demand, trading at a forward P/E of 13 on 2026 estimates.

Analysis

The tech-focused Nasdaq Composite has outperformed, rising 20.4% year-to-date, yet opportunities for value remain within the sector. This analysis highlights Alphabet and Dell Technologies as two leading tech companies presenting attractive valuations amidst strong AI-driven growth narratives. Both companies are positioned to capitalize on the accelerating adoption of artificial intelligence.

Alphabet (GOOGL) trades at an attractive 23 times next year's expected earnings, a discount to the S&P 500's P/E, despite its dominant position and cash generation from advertising. While competitive concerns from AI models like ChatGPT exist, Alphabet's AI Overviews have already boosted search usage and advertising revenue. Furthermore, Google Cloud's operating profit more than doubled year-over-year in Q2, driven by AI.

Dell Technologies (DELL) is a key beneficiary of the booming AI-optimized server market, where it holds a leadership position. The stock is significantly undervalued at a forward P/E of 13 on 2026 earnings estimates, complemented by a 1.3% dividend yield. Dell's robust growth is evidenced by shipping more servers in H1 2025 than all of last year and an $11.7 billion order backlog, with management indicating a much larger deal pipeline.

Both companies demonstrate strong fundamentals and growth catalysts directly tied to the expansion of artificial intelligence. Alphabet leverages AI for internal product enhancement and cloud services, while Dell provides the critical hardware infrastructure. Their current valuations, coupled with strong operational performance and future outlooks, suggest compelling investment cases within the tech sector.

Key Decisions for Investors

• Consider initiating or increasing positions in Alphabet (GOOGL) given its discounted P/E relative to the S&P 500 and strong AI-driven growth in Search advertising and Google Cloud, while monitoring competitive developments in AI search.
• Evaluate Dell Technologies (DELL) as a core holding for AI infrastructure exposure, leveraging its leadership in AI-optimized servers, substantial order backlog, and attractive forward P/E multiple.
• Monitor both companies' quarterly reports for continued AI-driven revenue and profit growth, particularly Google Cloud's performance and Dell's server shipment volumes and backlog conversion.