Technology stocks offer investors the promise of growth in ways few other sectors can. After all, tech is synonymous with innovation, spawning new products, services, and features.

Rotation among players in the artificial intelligence buildout has led tech stocks on a wild ride this year, first underperforming and then outdoing the rest of the market. “We still see pockets of opportunities in the tech sector,” says Brian Colello, Morningstar senior analyst. “In software, many names have sold off out of AI fears in 2026, but the selloff still appears too punitive relative to fundamentals.”

Year to date, the Morningstar US Technology Index rose 24.21%, while the Morningstar US Total Market Index gained 14.31%.

The 12 best global tech stocks to buy now

These were the most undervalued tech stocks that Morningstar’s analysts cover as of Sept. 3, 2026.

  1. Broadcom AVGO
  2. Fair Isaac FICO
  3. Broadridge BR
  4. SAP SAP
  5. NXP Semiconductors NXPI
  6. Sony Group SONY
  7. Monolithic Power Systems MPWR
  8. NVIDIA NVDA
  9. Tyler Technologies TYL
  10. TSMC TSM
  11. Texas Instruments TXN
  12. Synopsys SNPS

To come up with our list of the best tech stocks to buy now, we screened for:

  • Technology stocks that are undervalued, as measured by our price/fair value metric.
  • Stocks that earn a wide Morningstar Economic Moat Rating. We think companies with wide economic moat ratings can fight off competitors for at least 20 years.
  • Stocks that earn a Low, Medium, High, or Very High Morningstar Uncertainty Rating, which captures the range of potential outcomes for a company’s fair value.

Here’s a little more about each of the best tech stocks to buy, including commentary from the Morningstar analysts who cover each company. All data is as of Sept. 3, 2026.

Broadcom

  • Morningstar Price/Fair Value: 0.55
  • Morningstar Uncertainty Rating: High
  • Morningstar Economic Moat Rating: Wide
  • Industry: Semiconductors

Semiconductor company Broadcom is the most affordable stock on our list of the best tech stocks to buy. Broadcom is one of the largest semiconductor companies in the world and has also expanded into infrastructure software. The stock is trading 45% below our fair value estimate of $650 per share.

Broadcom is an amalgamation of high-value, differentiated and moaty chip and software businesses. Put simply, Broadcom is a prolific generator of cash flow. It is a terrific aggregator of firms, big and small. Its ability to acquire and streamline generates strong profits and cash flow and fuels robust shareholder returns. We laud the company for its execution and operating efficiency, which build upon its large organic investment and help it to outperform its end markets organically.

In our view, Broadcom’s networking and custom chip businesses are its strongest and the primary drivers of the company’s wide economic moat and results. We expect it to retain a dominant position in merchant silicon for switching and routing applications, where we see it as best-of-breed for high speeds. We also expect it to hold a formidable position in custom artificial intelligence accelerators as it benefits from hyperscale cloud vendors building chips to reduce their reliance on Nvidia. We see Broadcom as the key secondary AI compute vendor to Nvidia as hyperscalers further pursue custom silicon to gain performance, save money, and avoid vendor lock-in.

Outside of chips, Broadcom’s software businesses sell virtualization software, mainframe software, and cybersecurity software, and we see its offerings as highly competitive. Broadcom’s focus on strategic large software customers like financial institutions, governments, and large enterprises—where it is deeply embedded—elicits steep switching costs. We also see upselling opportunities with VMware under the firm’s belt.

We expect Broadcom to grow rapidly as a result of its skyrocketing AI chip business. We believe AI is already the primary driver of Broadcom’s results. To us, an investment in Broadcom today is an investment in its AI chip and networking businesses. Outside of AI, we see more moderate growth led by VMware and non-AI networking. We expect acquisitions to still be on Broadcom’s radar, but perhaps with larger, less frequent deals. After the 2023 VMware purchase, we expect the company to focus on deleveraging for a couple of years before tapping the acquisition market again.

Fair Isaac

  • Morningstar Price/Fair Value: 0.70
  • Morningstar Uncertainty Rating: High
  • Morningstar Economic Moat Rating: Wide
  • Industry: Software—Application

Founded in 1956, Fair Isaac Corporation is a leading applied analytics company. The firm earns a wide economic moat rating, and the shares of its stock look 30% undervalued relative to our $1,600 fair value estimate.

Founded in 1956, Fair Isaac Corporation established itself as the industry leader in credit scores, which turned out to be a very lucrative business. Credit scores are used for more than just individual lending decisions; they are benchmarks used by investors, lenders, and the industry overall.

FICO scores account for about 60% of the firm’s revenue but over 80% of its profit. About 80% of scores revenue is business-to-business, whereby Fair Isaac sells its scores to lenders. Despite its industry-leading position, Fair Isaac seemed happy for many decades to keep scores pricing stable and generate higher revenue on higher volumes. In 2018, Fair Isaac began revamping its pricing strategy and started to increase pricing on its scores. We expect Fair Isaac to continue to push pricing in multiple categories as it has a strong position. In addition to selling credit scores to lenders, FICO also generates about $220 million in annual revenue from its consumer offerings, where it sells credit scores directly to consumers and through partners such as Experian.

The underlying data for FICO scores is sourced from the three major US credit bureaus (Equifax, Experian, and TransUnion), and as such, FICO scores are typically sold via these three firms. The relationship between the credit bureaus and FICO has ranged from adversarial to chummy. In 2006, the credit bureaus launched a joint venture called VantageScore, but this has failed to displace FICO. With Fair Isaac’s move to a direct licensing model, it aims to potentially disintermediate credit bureaus, which further incentivizes those bureaus to push the competing VantageScore, in our view.

The firm’s software business is diversified across use cases in financial services. Fair Isaac was ahead of the curve, in our view, in focusing on cloud migration in the early 2010s. A key recent focus has been putting its applications on the FICO platform, which is what Fair Isaac refers to as its modern and modular software offering. Retention rates and recurring revenue growth have been strong in recent years, which suggests to us that its software strategy is working.

Broadridge

  • Morningstar Price/Fair Value: 0.72
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Economic Moat Rating: Wide
  • Industry: Information Technology Services

Next on our list of the best tech stocks to buy is Broadridge. Broadridge Financial Solutions, which was spun off from Automatic Data Processing in 2007, is a leading provider of investor communication and technology-driven solutions to banks, broker/dealers, traditional and alternative-asset managers, wealth managers, and corporate issuers. The stock is trading at a 28% discount to our fair value estimate of $250 per share.

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates over 30% of its fee revenue and EBITDA from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

Since its spinoff from Automatic Data Processing in 2007, Broadridge has streamlined its operations and expanded into adjacent markets. After years of losses in its clearing business, Broadridge sold it to Penson Worldwide in 2010. Expanding on its mailing, data security, and processing capabilities, Broadridge has completed over 30 acquisitions since 2010. Notable purchases include DST’s North American customer communications business for $410 million in 2016 and RPM Technologies for $300 million in 2019. The NACC business provides print and digital communication solutions, content management, postal optimization, and fulfillment to a variety of sectors, including financial services, utilities, and healthcare. RPM provides enterprise wealth-management software solutions and services. In 2021, Broadridge acquired Itiviti, a provider of order and execution management trading software and order routing, networking, and connectivity solutions, for $2.5 billion, which was pricey, in our view.

During its December 2023 investor day, Broadridge laid out three-year annual goals including recurring revenue growth of 7%-9% (organic 5%-8%), adjusted operating margin expansion of at least 50 basis points, and adjusted earnings per share growth of 8%-12%. These targets are similar to its prior three-year goals, which Broadridge largely achieved.

SAP

  • Morningstar Price/Fair Value: 0.72
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Economic Moat Rating: Wide
  • Industry: Software—Application

Founded in Germany in 1972 by former IBM employees, SAP is the world’s largest provider of enterprise application software. The firm earns a wide economic moat rating, and the shares of its stock look 28% undervalued relative to our $302 fair value estimate.

SAP is the world’s largest provider of enterprise application software and global market leader in enterprise resource planning software. The company earns revenue by selling subscriptions for its various cloud-based software-as-a-service products as well as licenses and maintenance fees for on-premises software, which are now being largely phased out. Besides its core ERP products such as S/4HANA, SAP offers well-known back-office software products such as Concur for travel and expense management and Ariba for procurement.

The company was late to the cloud for ERP software but now offers two compelling products: RISE with SAP, which is the private-cloud edition designed for SAP’s large enterprise customers that are transitioning from their SAP on-premises ERP (ECC) to SAP S/4HANA; and GROW with SAP, which is the public cloud edition that is designed for midmarket companies with less complex requirements. We think GROW with SAP fills an important void in SAP’s product offering, as previously SAP’s ERP software was often unattractive to smaller customers given the implementation costs were just too high. With the launch of these new products, cloud revenue is growing swiftly, and SAP is capturing many new midmarket customers.

SAP is following a land and expand strategy, which is common in the enterprise software market. RISE with SAP and GROW with SAP are the land products, after which the company then upsells and cross-sells more SAP products to these customers, which is much easier in a cloud-based model. The company has yet to release its latest long-term ambitions but expects revenue growth to accelerate at least through 2027, along with rising margins as the cloud business reaches efficient scale.

NXP Semiconductors

  • Morningstar Price/Fair Value: 0.73
  • Morningstar Uncertainty Rating: High
  • Morningstar Economic Moat Rating: Wide
  • Industry: Semiconductors

NXP Semiconductors is a leading supplier of high-performance mixed-signal products. Trading 27% below our fair value estimate, NXP Semiconductors has a wide moat. We think shares of this stock are worth $310 per share.

NXP Semiconductors is one of the largest suppliers of semiconductors for the automotive market and a significant player in the analog and mixed-signal chip markets generally. We believe the company has a strong position in the automotive, industrial, and mobile end markets through a combination of high customer switching costs and intangible assets. Although the company sells into cyclical industries, the strength of these competitive advantages gives us confidence that it will generate excess returns over the cost of capital over the next decade and beyond.

The merger of Freescale and the former NXP in 2015 led to a powerhouse in automotive semiconductors, which makes up more than half the company’s total revenue. Like many of its chipmaking peers, NXP is well-positioned to benefit from safer, greener, smarter cars in the years ahead. It is among the market leaders in automotive semis, especially in microcontroller units, which serve as the brains of a variety of electronic functions in a car. We’re optimistic about NXP’s development of products used in active safety systems, such as 77-gigahertz radar modules and battery management systems in upcoming electric vehicles.

Yet NXP’s prospects are also bright in its industrial and Internet of Things segment, thanks to its legacy strength in MCUs and embedded processors, along with its development of newer crossover MCUs that combine some of the benefits of each. Finally, NXP’s mobile wallet solutions should remain the industry’s gold standard and the backbone of mobile payment technologies offered by Apple, Google, and others.

Sony Group

  • Morningstar Price/Fair Value: 0.73
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Economic Moat Rating: Wide
  • Industry: Consumer Electronics

Sony Group is a conglomerate with consumer electronics roots that not only designs, develops, produces, and sells electronic equipment and devices, but is also engaged in content businesses, such as console and mobile games, music, and movies. Trading 27% below our fair value estimate, we think shares of this wide-moat stock are worth $34 per share.

As technologies and consumer preferences change rapidly, it is generally difficult for consumer electronics companies to build an economic moat. The replacement cycle for digital appliances is usually four to six years, but as most products are commoditized, it is difficult for manufacturers to build an ecosystem that prevents customers from switching to other brands. As a result, Sony’s profitability in electronics has been unstable in the past, while its music, movies, and financial-services businesses have generated solid results.

Over the past decade, Sony has transformed its business model to enable more solid and stable growth by reducing the volatility of the consumer electronics business and by aggressively investing in acquiring content for its entertainment businesses such as music, movies, and games.

In the consumer electronics business, profits are generated from digital cameras and audio equipment, where Sony has strengths, while the TV business is thoroughly focused on avoiding losses by focusing on premium products and strictly managing inventories.

In the music and movie businesses, Sony has been able to seize growth opportunities, such as the expansion of the streaming market, by expanding its content and exploring new artists.

The image sensor business has the largest global market share. The majority of sales come from the mobile market, which is benefiting from the strong demand for improved image quality in smartphone cameras. However, unlike the entertainment businesses, image sensors require high capital investment and research and development, and with such high fixed costs, we believe the profitability of the business is not high enough.

PlayStation is Sony’s largest revenue-generating business. While user migration from PS4 to PS5 is progressing well, rising game development costs and competition from other platforms such as Steam are becoming a concern for the business.

Monolithic Power Systems

  • Morningstar Price/Fair Value: 0.74
  • Morningstar Uncertainty Rating: High
  • Morningstar Economic Moat Rating: Wide
  • Industry: Semiconductors

Monolithic Power Systems is a power chipmaker specializing in voltage regulators. The firm earns a wide economic moat rating, and the shares of its stock look 26% undervalued relative to our $1,650 fair value estimate.

Monolithic Power Systems is a disruptor in the power management chip market, using its proprietary process technology to differentiate from larger competitors. In our view, MPS differentiates from larger incumbents via its unique fabless model, with which it develops advanced manufacturing processes that integrate many functions on a single chip to offer a smaller form factor and greater energy efficiency to its customers. We believe revenue growth far above its largest competitors shows that its differentiated approach to power management is gaining traction in the market and that MPS is taking market share.

MPS has intangible assets from its innovative chip designs and advancements in manufacturing that carve out a wide economic moat. We think power chip incumbents are likely to continue serving a wide array of end customers with lagging-edge, in-house chip manufacturing, rather than directly competing with MPS’ design prowess and quick time to market. Like its larger rivals, MPS benefits from high customer switching costs once its chips are designed into end products, especially in end markets with long product lifecycles. We think MPS’ asset-light fabless model will allow it to extract high returns from a low invested capital base, even as competition attempts to fend it off.

We expect MPS to focus on organic top-line growth across all its end markets and to continue outgrowing other power chipmakers as it takes market share. We think MPS will experience its most rapid growth in data centers as it benefits from artificial intelligence investment. We also expect high growth for sales into cars, where it is moving up the value chain and winning designs for advanced driver-assist systems and electric vehicle drivetrain and battery sockets. We also think rising volumes will help expand operating margin to a strong level in the 40% range longer term. Finally, we expect MPS will continue investing heavily in advancing its process technology and aggressively marketing its differentiated approach to maintain its higher-than-market growth.

Nvidia

  • Morningstar Price/Fair Value: 0.74
  • Morningstar Uncertainty Rating: Very High
  • Morningstar Economic Moat Rating: Wide
  • Industry: Semiconductors

Nvidia is a leading developer of graphics processing units. Nvidia is an affordable tech stock, trading at a 26% discount to our fair value estimate of $310 per share. The semiconductor company earns a wide economic moat rating.

Nvidia has a wide economic moat, thanks to its market leadership in graphics processing units, hardware, software, and networking tools needed to enable the exponentially growing market around artificial intelligence. In the long run, we expect tech titans to strive to find second-sources or in-house solutions to diversify away from Nvidia in AI, but these efforts will, at best, only chip away at Nvidia’s AI dominance.

Nvidia’s GPUs run parallel processing workloads, using many cores to efficiently process data at the same time. In contrast, central processing units, such as Intel’s processors for PCs and servers, or Apple’s processors for its Macs and iPhones, process the data of “0’s and 1’s” in a serial fashion. The wheelhouse of GPUs has been the gaming market, and Nvidia’s GPU graphics cards have long been considered best of breed.

More recently, parallel processing has emerged as a near-requirement to accelerate AI workloads. Nvidia took an early lead in AI GPU hardware, but more importantly, developed a proprietary software platform, Cuda, and these tools allow AI developers to build their models with Nvidia. We believe Nvidia not only has a hardware lead but also benefits from high customer switching costs around Cuda, making it unlikely for another chip designer to emerge as a leader in AI training. Nvidia’s expansion into networking has been impressive, allowing customers to cluster AI GPUs together for AI training.

We think Nvidia’s prospects will be tied to the AI market, for better or worse, for quite some time. We expect leading cloud vendors to continue to invest in in-house, while AMD is also working on GPUs and AI accelerators for the data center. However, we view Nvidia’s GPUs and Cuda as the industry leaders, and the firm’s massive valuation will hinge on the pace of AI buildouts in the years ahead.

Tyler Technologies

  • Morningstar Price/Fair Value: 0.76
  • Morningstar Uncertainty Rating: High
  • Morningstar Economic Moat Rating: Wide
  • Industry: Software—Application

Tyler Technologies provides a full suite of software solutions and services that address the needs of cities, counties, schools, courts, and other local government entities. Tyler Technologies has an economic moat rating of wide. It trades 24% below our fair value estimate of $500 per share.

We view Tyler Technologies as the clear leader in a sleepy and underserved public service software niche market. We believe there is a decadelong runway for normalized top-line growth near 10% at Tyler, especially as demand for SaaS accelerates and the need to modernize local governments’ legacy enterprise resource planning systems intensifies.

The company’s three core products are Munis, which is the core ERP system, Odyssey, which is the court management system, and a web-enabled transactional platform. These systems enable normal operations of governmental units, including financial management, human resources, revenue management, tax billing, and asset management. Tyler addresses the needs of cities, counties, schools, courts, and other local government entities. Many existing core systems at customer sites are at least 20 years old and running on ancient software code, where there is no next wave of incoming, fluent programmers to keep these systems running. We think extending the life of these legacy systems is no longer tenable.

Tyler has also moved more meaningfully toward more transactional recurring revenue through several avenues. E-Filing for court documents and local village hall web portals for basic services like paying a water bill online have been the primary sources for these revenues over the last five years. Further, the April 2021 acquisition of NIC Inc., a leader in government solutions and payments, punctuated this move to more transactionally recurring revenue in our view.

Lastly, we see Tyler’s expanding portfolio as driving larger deals that encompass more solutions. While the company used to fight for every $100,000 deal, it has now established enough of a reputation in the government market that it is called upon in most relevant government system searches. The potential client base has certainly grown, as evidenced by a variety of statewide e-filing, transactional, and court system deals worth tens of millions of dollars annually. Further, Tyler benefits from a fragmented market with no companies of comparable size or scale focused on the local public institution market.

Taiwan Semiconductor Manufacturing

  • Morningstar Price/Fair Value: 0.78
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Economic Moat Rating: Wide
  • Industry: Semiconductors

Taiwan Semiconductor Manufacturing is the world’s largest dedicated chip foundry, with about 70% market share in 2025. TSMC has an economic moat rating of wide and trades 22% below our fair value estimate. We think shares of this stock are worth $534 per share.

Taiwan Semiconductor Manufacturing is the world’s largest dedicated contract chip manufacturer, or foundry, with over 70% market share as of mid-2026. It makes integrated circuits for customers based on their proprietary IC designs. TSMC has long benefited from semiconductor firms around the globe transitioning from integrated device manufacturers to fabless designers. Like all foundries, it assumes the costs and capital expenditures of running factories amid a highly cyclical market for its customers. Foundries tend to add excessive capacity during times of burgeoning demand, which can result in underutilization during downturns and hampers profitability.

The rise of fabless semiconductor firms has supported the growth of foundries, which in turn has encouraged increased competition. However, most of these newer competitors are confined to low-end manufacturing due to prohibitive costs and engineering know-how associated with leading-edge technology. To prolong the excess returns enabled by leading-edge process technology, or nodes, TSMC initially focuses on logic products, mostly used on central processing units and mobile chips, then focuses on more cost-conscious applications. This strategy has been successful, illustrated by the fact that the firm is one of the two foundries still possessing leading-edge nodes while dozens of peers lag.

We note two long-term growth factors for TSMC. First, the consolidation of semiconductor firms is expected to create demand for integrated systems made with the most advanced nodes. Second, organic growth of artificial intelligence, Internet of Things, and high-performance computing applications may last for decades. AI and HPC play a central role in quickly processing human and machine inputs to solve complex problems like autonomous driving and language processing, which accentuates the need for more energy-efficient chips. Cheaper semiconductors have made integrating sensors, controllers, and motors to improve home, office, and factory efficiency possible.

Texas Instruments

  • Morningstar Price/Fair Value: 0.78
  • Morningstar Uncertainty Rating: High
  • Morningstar Economic Moat Rating: Wide
  • Industry: Semiconductors

Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators. Texas Instruments trades 22% below our fair value estimate; we think shares of this stock are worth $325 per share.

Texas Instruments is the world’s largest analog chipmaker and a key supplier of analog and embedded chips into a wide range of applications, such as cars, industrial devices, data centers, and personal electronics. We’re encouraged by TI’s relentless focus on higher-margin semiconductors, and when combined with smart operational moves on the manufacturing front, we foresee robust free cash flow generation in the years ahead.

Texas Instruments has a leading share of the fragmented yet lucrative analog chip market. Analog chips are used to convert real-world signals, such as sound and temperature, into digital signals that can be processed. We believe Texas Instruments has a wide economic moat because it benefits from intangible assets around proprietary analog and embedded chip designs, as well as high customer switching costs. Since analog chips are neither particularly expensive, nor do they require cutting-edge manufacturing techniques, high-quality analog chipmakers tend to retain design wins for the life of the product and maintain healthy pricing and strong profitability on such sales over time. Further, Texas Instruments’ size allows the firm to compete across a broader spectrum of industries, without its fortunes tied to a single customer or end market.

TI has spent much of the past decade focusing on its analog chip business, especially by producing its chips on more advanced 300-millimeter silicon wafers. This focus has led to strong gross margin expansion. The “easy” expansion is over, and more recently, TI faces risk of over expansion. Nonetheless, we still foresee healthy gross margins in the years ahead, even if TI has bouts of overcapacity from time to time. Increasingly, TI’s exposure to data centers is becoming important as TI is supplying a host of analog and embedded content into the once-in-a-generation artificial intelligence buildout.

Synopsys

  • Morningstar Price/Fair Value: 0.80
  • Morningstar Uncertainty Rating: High
  • Morningstar Economic Moat Rating: Wide
  • Industry: Software—Infrastructure

Software infrastructure firm Synopsys rounds out our list of best tech stocks to buy. Synopsys is a provider of electronic design automation software and intellectual property products. The stock is 20% undervalued relative to our fair value estimate of $520 per share.

Synopsys is a leading provider of software tools that engineers use to solve a fundamental industry challenge—designing complex semiconductor chips. It offers products that streamline chip building, enhance the efficiency of chip structure, automate processes, and minimize errors. Its solutions have become indispensable to virtually every major semiconductor company and a growing number of electronic-systems companies globally. We see the primary growth drivers being when clients initiate new chip designs and price hikes to charge for additional value provided. We see a long runway for increased chip activity, driven by artificial intelligence-related chip development and increasing chip density and prevalence in electronic systems.

Synopsys has three segments. The electronic design automation business contributes half of the company’s revenue. Synopsys is the leading digital EDA provider among peers like Cadence Design Systems and Siemens EDA (formerly Mentor Graphics). We foresee demand for EDA tools growing significantly as chip intricacy increases and the industry shifts toward multi-die or chiplet architectures, thus requiring more sophisticated design solutions, which Synopsys is well positioned to supply.

The intellectual property segment sells predesigned chip components. We observe IP complementing the EDA business and anticipate the industry’s growing need for prebuilt IP blocks for standardized components to support IP demand.

Recently, Synopsys acquired Ansys, thus establishing the Simulation and Analysis segment. We like the strategic merger with Ansys as it positions Synopsys to expand its total addressable market to about $70 billion by 2030 while unlocking valuable synergies in simulation and verification. In addition, simulation plays a natural part in the Internet of Things, robotics, predictive maintenance and digital twins, in which Ansys is positioning itself to meet future demand.

We see a repositioning of the IP portfolio to focus on AI related needs, a more royalty heavy IP fee structure, AI enhanced EDA workflows, and a structural increase in demand for chips across the economy all as key drivers of growth for Synopsys.