- The Nasdaq got off to a flying start on Monday following the US-Iran agreement
- However, valuations remain very stretched in the tech sector, and investors should be selective
- What are the best US tech stocks that aren’t yet overvalued?
The jumped 3.07% on Monday, June 15, closing at 26,683.94, after the United States and Iran reached a memorandum of understanding aimed at ending their conflict and reopening the Strait of Hormuz.
The agreement, which is expected to be formally signed in Geneva on Friday, sent prices down nearly 5% to their lowest levels since March. Lower energy costs and improving risk appetite helped fuel one of the strongest sessions for technology stocks in months.
Among the market leaders, gained 3.40% and rose 3.12%. The standout performer was , which surged roughly 20% during its first full trading session after a strong debut on the Nasdaq last Friday.
Still, the rally should not distract investors from a key reality: valuations across much of the US technology sector remain elevated. Some AI-related stocks continue to exhibit annualized volatility above 30%, while expectations embedded in share prices leave little room for disappointment.
As a result, selectivity remains essential. Market enthusiasm can lift nearly every stock in the short term, regardless of fundamentals. In this environment, valuation discipline becomes increasingly important for distinguishing between companies with genuine long-term potential and those whose prices already reflect near-perfect execution.
These US tech stocks combine upside potential, according to analysts, with a valuation discount
To identify truly undervalued tech opportunities, we turned to the Investing.com screener, using the following criteria:
- Market capitalization greater than $5 billion
- Technology sector
- Upside potential of more than 20% according to InvestingPro Fair Value
- Upside potential of more than 50% based on the average analyst target
- InvestingPro Health Score above 2.5/5
This research identified 9 opportunities:
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Specifically, these US technology stocks offer upside potential of 25.7% to 60.3% based on InvestingPro Fair Value estimates, while analysts see gains ranging from 50.1% to 77.3%, highlighting a combination of attractive valuations and strong growth potential.
Among these stocks are:
- Pegasystems Inc (NASDAQ:) provides workflow automation and business process software to large enterprises across industries such as banking, insurance, and telecommunications. The company continues to benefit from growing demand for digital transformation, with Annual Contract Value rising 14% year over year and Cloud ACV increasing 27%. Operating cash flow also grew strongly. Despite these trends, PEGA trades at a forward P/E of just 12.3x, a discount to many software peers. Management expects revenue to reach $2 billion in 2026, supported by accelerating cloud growth.
- Bilibili Inc (NASDAQ:) operates one of China’s largest online video and entertainment platforms, generating revenue through advertising, gaming, and premium services. After years of investment, the company reached profitability in 2025, reporting net income of 1.19 billion yuan and double-digit revenue growth. Fourth-quarter earnings significantly exceeded expectations, while management continues to target higher margins over time. The key risk remains regulatory and geopolitical uncertainty associated with Chinese companies listed on US exchanges.
However, many other stocks on this list offer more attractive profiles.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any assets and does not constitute an offer, solicitation, recommendation, or advice to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky; therefore, any investment decision and the associated risk are the sole responsibility of the investor. Additionally, we do not provide any investment advisory services.
