Finding a cheap technology stock worth buying right now isn’t an easy task. The S&P 500 (SNPINDEX: ^GSPC) has gained 35% over the past 12 months, as of this writing (Nov. 7), and much of that growth has been fueled by gains in the tech sector.
But there are still some relatively good deals out there, and I think the following two relatively inexpensive tech stocks are worth buying right now. Here’s why.
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Apple (NASDAQ: AAPL) is easily overlooked today among much flashier tech stocks. Still, it deserves a spot on this list because its shares are trading at a forward price-to-earnings ratio of 29, which is cheaper than the broader technology sector’s average P/E ratio of 33.
But why Apple right now? The company continues to put up solid financial results and it’s moving further into artificial intelligence (AI), which could be a boon to its iPhone sales.
The company recently reported its fourth-quarter (ended Sept. 28) financial results, in which revenue rose 6% to $96.4 billion, eking past analysts’ consensus estimates. Plus, adjusted earnings per share were $1.64, beating Wall Street’s expectation of $1.60 per share.
The main headline for Apple in the quarter was that iPhone revenue rose by 6%, showing solid demand for the company’s latest iPhone 16 lineup. More importantly, Apple just released a new update to its iOS software to include its new Apple Intelligence, the company’s name for its artificial intelligence.
While it’s a modest push into AI right now, Apple has plans to add more features in the coming months, including integrating ChatGPT with Siri. An ongoing rollout of AI features is expected to help generate an upgrade cycle among consumers, with Counterpoint Research estimating that 50 million iPhone 12 users are eager for an upgrade.
With Apple’s relatively inexpensive shares compared to the broader tech sector, investors may want to consider buying into this tech giant before the company benefits from a boom in AI smartphone demand, which could equal 912 million smartphones by 2028, according to IDC.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) was largely caught flatfooted when OpenAI’s ChatGPT burst onto the scene two years ago. However, since then, the company has implemented new AI services and features that prove Alphabet is nowhere near done competing in the tech space.
For starters, Alphabet rolled out new AI responses in its search results and added its Gemini AI features to its suite of Google Workspace products. Management said on the company’s third-quarter (which ended Sept. 30) earnings call that all seven of the company’s core products and platforms now use Gemini models, reaching more than 2 billion monthly users.
