12 Undervalued Tech Stocks That Could Power the Next Wave of Growth
Technology remains the beating heart of innovation—spawning new products, services, and features that transform industries. And in 2025, tech stocks continue to lead the market.
From January through September 16, the Morningstar U.S. Technology Index gained 16.67%, outpacing the broader U.S. Market Index at 13.29%. While the sector overall looks fairly valued, analysts have identified 12 tech stocks that remain significantly undervalued and attractive for long-term investors.
The 12 Best Tech Stocks to Buy Now (as of Sept. 16, 2025)
1. Endava (DAVA) – Trading at just 36% of its fair value. Specializes in digital transformation for financial services, with Mastercard as a long-term client. Strong push into retail and healthcare.
2. Globant (GLOB) – About 60% undervalued. Partnered with Disney for over 10 years. Leverages “studio” agile delivery model and aims to grow at 3–4x the IT services market.
3. Nice (NICE) – 45% undervalued. Leader in cloud-based customer engagement platforms (CXone) and financial crime prevention tools.
4. Akamai Technologies (AKAM) – 39% undervalued. Transitioning from content delivery to cybersecurity and edge computing, strengthened by its Linode acquisition.
5. Sabre (SABR) – 38% undervalued. Major player in global airline booking systems, with strong network effects and cloud transition.
6. Sensata Technologies (ST) – 38% undervalued. Supplier of EV and industrial sensors, with long-term client stickiness and exposure to electrification trends.
7. Adobe (ADBE) – 37% undervalued. Dominates creative software (Photoshop, Illustrator, Firefly AI). Expanding into digital marketing and document management.
8. Fiserv (FI) – 33% undervalued. Known for electronic payments and Clover small-business solutions. Benefiting from its successful First Data integration.
9. ON Semiconductor (ON) – 29% undervalued. Strong in automotive chips, EV power transfer, and advanced driver-assist sensors.
10. Elastic (ESTC) – 28% undervalued. AI-powered search, observability, and cybersecurity platform. Stands out with cloud-neutral flexibility.
11. HubSpot (HUBS) – 27% undervalued. Cloud-based growth platform for mid-market firms. Expanding beyond SMBs to attract larger enterprises.
12. Workday (WDAY) – 27% undervalued. Cloud-native leader in HR and finance software. Investing heavily in AI-powered HR and financial automation tools.
Why These Stocks Stand Out
Morningstar’s analysts screened companies using three key filters:
• Undervaluation relative to fair value estimates.
• Economic moats (narrow or wide), ensuring competitive advantage for 10–20 years.
• Moderate uncertainty ratings, meaning less risk of unpredictable outcomes.
Together, these factors point to tech companies with strong growth potential, resilience, and attractive entry prices for investors.
✨ Bottom Line: While the tech sector has already surged this year, these 12 undervalued stocks present rare opportunities for investors seeking long-term growth at discounted prices. From AI-driven platforms like Elastic and Workday, to established giants like Adobe, and digital transformation leaders like Endava and Globant—these picks are positioned to shape the next decade of innovation.
Technology remains the beating heart of innovation—spawning new products, services, and features that transform industries. And in 2025, tech stocks continue to lead the market.
From January through September 16, the Morningstar U.S. Technology Index gained 16.67%, outpacing the broader U.S. Market Index at 13.29%. While the sector overall looks fairly valued, analysts have identified 12 tech stocks that remain significantly undervalued and attractive for long-term investors.
The 12 Best Tech Stocks to Buy Now (as of Sept. 16, 2025)
1. Endava (DAVA) – Trading at just 36% of its fair value. Specializes in digital transformation for financial services, with Mastercard as a long-term client. Strong push into retail and healthcare.
2. Globant (GLOB) – About 60% undervalued. Partnered with Disney for over 10 years. Leverages “studio” agile delivery model and aims to grow at 3–4x the IT services market.
3. Nice (NICE) – 45% undervalued. Leader in cloud-based customer engagement platforms (CXone) and financial crime prevention tools.
4. Akamai Technologies (AKAM) – 39% undervalued. Transitioning from content delivery to cybersecurity and edge computing, strengthened by its Linode acquisition.
5. Sabre (SABR) – 38% undervalued. Major player in global airline booking systems, with strong network effects and cloud transition.
6. Sensata Technologies (ST) – 38% undervalued. Supplier of EV and industrial sensors, with long-term client stickiness and exposure to electrification trends.
7. Adobe (ADBE) – 37% undervalued. Dominates creative software (Photoshop, Illustrator, Firefly AI). Expanding into digital marketing and document management.
8. Fiserv (FI) – 33% undervalued. Known for electronic payments and Clover small-business solutions. Benefiting from its successful First Data integration.
9. ON Semiconductor (ON) – 29% undervalued. Strong in automotive chips, EV power transfer, and advanced driver-assist sensors.
10. Elastic (ESTC) – 28% undervalued. AI-powered search, observability, and cybersecurity platform. Stands out with cloud-neutral flexibility.
11. HubSpot (HUBS) – 27% undervalued. Cloud-based growth platform for mid-market firms. Expanding beyond SMBs to attract larger enterprises.
12. Workday (WDAY) – 27% undervalued. Cloud-native leader in HR and finance software. Investing heavily in AI-powered HR and financial automation tools.
Why These Stocks Stand Out
Morningstar’s analysts screened companies using three key filters:
• Undervaluation relative to fair value estimates.
• Economic moats (narrow or wide), ensuring competitive advantage for 10–20 years.
• Moderate uncertainty ratings, meaning less risk of unpredictable outcomes.
Together, these factors point to tech companies with strong growth potential, resilience, and attractive entry prices for investors.
✨ Bottom Line: While the tech sector has already surged this year, these 12 undervalued stocks present rare opportunities for investors seeking long-term growth at discounted prices. From AI-driven platforms like Elastic and Workday, to established giants like Adobe, and digital transformation leaders like Endava and Globant—these picks are positioned to shape the next decade of innovation.