Four Undervalued Tech Players Quietly Positioning for 2026 AI Boom

Tech stocks have been on fire in 2025—the Computer and Technology group surged 27.8%, crushing the S&P 500’s 20% gain. Yet here’s the thing: despite the rally, several mega-cap tech companies are still trading at surprisingly cheap valuations. While everyone’s chasing the obvious winners, there are solid undervalued tech stocks lurking beneath the hype, particularly those sitting at the intersection of AI infrastructure buildout and data center expansion.

Why This Matters Right Now

AI Isn’t Experimental Anymore—It’s Essential

The AI wave that felt speculative 12 months ago? It’s now a competitive necessity. Every sector from manufacturing to telecom to social commerce is deploying AI at scale. We’re seeing real capital flowing into AI infrastructure—not just talk, actual spend.

This shift is creating a massive tailwind for the companies providing the underlying hardware and software. Manufacturing plants are using AI for supply chain optimization and warehouse automation. Telecom carriers are rolling out AI-powered network management tools. Financial services, healthcare, retail—they’re all investing heavily in AI capabilities.

The Data Center Gold Rush is Real

Here’s where it gets interesting: enterprises globally are racing to build high-performance computing infrastructure. The AI data center market alone is projected to balloon from $13.62 billion in 2025 to $60.49 billion by 2030—that’s a 28.3% compound annual growth rate. These buildouts require serious semiconductor power and storage solutions.

The semiconductor industry is quietly reshaping itself around this. The focus is shifting from training massive AI models to actually deploying them in real time (AI inference). Companies adjusting their strategies to capitalize on this transition are positioning themselves for outsized gains.

The Four Stocks Worth Your Attention

Micron Technology [MU]—The Memory Play

Micron has locked in strategic partnerships with NVIDIA, AMD and Intel. These aren’t casual deals—they’re long-term agreements ensuring Micron captures significant share of the AI infrastructure boom. The company’s HBM3E memory portfolio is seeing strong customer demand as GPU clusters expand.

Valuation-wise, Micron trades at a forward P/E of 12.17, a meaningful discount to its industry peer group at 17.23. The stock has gained 240.6% over the past year, but what’s more telling: earnings estimates for 2026 have improved 113.14% over the last 60 days. Long-term earnings growth expectations sit at 52.06%.

Applied Materials [AMAT]—The Equipment Enabler

Based in Santa Clara, Applied Materials supplies the equipment that makes semiconductors happen. The company is ideally positioned to benefit from AI-driven chip innovation and the explosive growth in ICAPS technologies (IoT, Communications, Automotive, Power and Sensors).

Data center demand for memory chips isn’t slowing—quite the opposite. AMAT trades at a forward P/E of 26.56 versus 34.54 for semiconductor peers. Earnings estimates improved 6.42% for 2026 recently.

Salesforce [CRM]—The AI Software Story

Salesforce has been methodically expanding its generative AI capabilities. The company’s acquisition of Informatica bolstered its AI-powered data management platform. As an integrated SaaS provider, Salesforce sits in the sweet spot between enterprise demand for AI tools and the company’s ability to deliver them at scale.

Forward sales multiples of 5.47 compare favorably to software peers at 7.58. Long-term earnings growth expectations reach 15.04%.

Cisco Systems [CSCO]—Network Security + AI

Cisco is aggressively expanding its network security footprint while simultaneously launching AI-powered data center solutions—Unified Nexus Dashboard, Intelligent Packet Flow, configurable AI PODs. These aren’t niche offerings; they’re core to how enterprises will manage their future infrastructure.

Trading at a 18.48 forward P/E against 22.87 for networking peers, Cisco has delivered solid 30% annual returns while maintaining valuation discipline.

The Bottom Line

These four undervalued tech stocks represent a rare convergence: strong financial fundamentals, exposure to the AI infrastructure megatrend, and valuations that don’t yet fully price in the opportunity ahead. While the tech sector has rallied hard in 2025, these picks still offer meaningful upside potential heading into 2026.