Have $1,000? These 2 Stocks Could Be Bargain Buys for 2025 and Beyond.

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4 hours ago

Reasonably valued growth stocks are still available in the high-octane tech sector.
Advanced Micro Devices' growth prospects in the chip industry appear undervalued, with the stock trading at just 22 times 2026 earnings estimates.
Dell shares trade at just 12 times forward earnings despite a growing backlog of orders for its AI servers.
10 stocks we like better than Advanced Micro Devices ›
Investors who are looking for stocks that could explode over the next few years should look for companies offering a balance of growth and value. There are attractive deals in the tech sector right now, particularly companies that are supplying mission-critical hardware for artificial intelligence (AI) infrastructure.
If you have $1,000 you can tuck away in the market for at least five years, the following tech stocks trade at reasonable price-to-earnings (P/E) multiples that could support attractive shareholder returns.
Shares of Advanced Micro Devices (NASDAQ: AMD) have soared 76% since hitting a 52-week low in April. The stock's gains are supported by strong demand for its graphics processing units (GPUs) used in data centers, as well as market share gains against Intel with its range of central processing units (CPUs) for servers and consumer PCs.
The stock still has room to run in the near term. In the first quarter, AMD reported a year-over-year revenue increase of 36%, with adjusted earnings per share (EPS) surging 55%. Yet the stock is trading at a forward price-to-earnings (P/E) multiple of just 35 based on this year's consensus earnings estimate from Wall Street analysts.
Using 2026 earnings estimates, the stock's earnings multiple drops further to 24, indicating that AMD's future growth could be significantly undervalued by investors. AMD expects to gain share this year with its EPYC server and Ryzen consumer CPUs. It also expects to gain share in the GPU market with strong demand for its Radeon graphics chips used for playing video games and its upcoming Instinct MI350 series accelerators for data centers.
AMD is seeing such strong momentum in its business that management doesn't see near-term macroeconomic headwinds from tariffs or anything else impacting its outlook. Analysts expect AMD to report revenue growth of 23% for the full year.
Looking ahead to 2028, Wall Street analysts expect AMD's earnings to reach $10.49. If the stock is trading at a P/E multiple of 30, that puts the stock at over $300, or more than double its recent share price.
Shares of Dell Technologies (NYSE: DELL) are also on the move following the recent sell-off with the broader market during the first quarter. Dell's server business is cooking right now, which should gradually take the spotlight off its struggles in the PC market and send the stock higher over the next few years.
Dell's revenue is roughly split between its infrastructure solutions (servers) and client solutions (PCs and peripherals), with total revenue up 5% year over year in Q1. Dell's infrastructure business is experiencing strong demand, with the company expecting to ship $7 billion worth of AI servers in Q2. This is a massive jump over the $1.8 billion shipped in Q1.
It's a strong signal for Dell's growth trajectory that it is seeing surging demand across multiple industries. Dell noted new enterprise AI customers from web technology, financial services, education, entertainment, and manufacturing. As the leader in servers, this is pointing to a tremendous opportunity.
The stock offers great value ahead of these attractive growth prospects. Despite Dell reporting a 17% year-over-year increase in earnings last quarter, largely due to improving margins in the infrastructure business, the stock is trading at a forward P/E of just 13.
The opportunity in servers should fuel double-digit growth in earnings over the next few years. It's only a matter of time before Wall Street sees the value in Dell's stock and bids it up to a higher earnings multiple, further compounding the upside for investors.
Assuming Dell meets the consensus earnings estimate of $11.77 in 2028 and the stock trades at 20 times earnings, that puts the stock at $235, representing a doubling of its recent share price.
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John Ballard has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices and Intel. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.
Have $1,000? These 2 Stocks Could Be Bargain Buys for 2025 and Beyond. was originally published by The Motley Fool