3 Undervalued Tech Stocks to Buy Now: AT&T, Micron, Cisco

The stock market indicates a bright future and the S&P 500 index is usually at all-time highs with an incredible valuation of 30 times earnings according to August 5, 2025. It is that kind of climate where the headlines scream expensive, beware in every corner. However not all technology stocks are sweating hot air. There is a quieter band of stable, underpriced technology leaders that are gaining substantial momentum under the hype of high-flying growth stocks. 

The stocks in question, AT&T, Micron Technology and Cisco Systems, provide a special combination of value, growth, and endurability that is hard to find in the frothy market today. With that as background, it is time to dig into these three attractive choices, and solve the puzzle of how, with premium market pricing, they can be the best investments an investor can make. 

AT&T is better than ever

AT&T spent years dragging down a wrong move into the media. The huge telecom giant invested in DirecTV, Time Warner and a group of smaller content assets, only to be diverted away in focus of its own capabilities. The chapter is settled now. At the other end of the strategy scale, AT&T has detonated its media plans and is betting heavily on its mostly wireless and fiber operation. The result? A stronger and more focused company that has the cash to grow.

By August 5 2025, AT&T has a market cap of $198 billion and shares are quoted at $27.73. The wireless arm on its own has 118 million subscribers. The fiber unit, meanwhile, is more than succeeding, as it is aiding to counter some of the losses existing within the business of wireline sphere.

The analysts expect an increase in AT&T adjusted EBITDA to grow at a 3-compound annual growth rate (CAGR) between 2024 and 2027 which is quite marginal and encouraging in a market that is flooded with uncertainty. 

More enticing is that AT&T is currently trading at less than 7x this year’s adjusted EBITDA, not to mention provides a solid forward dividend yield of 4%. That growth, income and value might be too attractive to pass up by those investors who worry when prices look high in other sectors.

Micron Technology Set to Grow With AI

Micron Technology is staging a technological revival that few outside the company are talking about. Micron, sometimes outpaced by its bigger South Korean competitors, Samsung and SK Hynix, is an expert in sophisticated DRAM and NAND memory cell devices that underpin such functions as computers and phones, data centers and artificial intelligence (AI) servers

.Any tech stock is cyclical and memory makers know it better than anyone. The industry was shaken by a 2023 recession, due to a post-pandemic PC and slowdown of smartphone and data center investment.  But this is changing very fast at Micron. Micron has gone full throttle with PC markets stabilizing, smartphone units sold to satisfy growth and data centers with a common theme of higher demands on AI-driven gear.

These statistics are terrible. Relative to fiscal 2024 to fiscal 2027 (ending September 2027), analysts project that Micron will increase revenue and adjusted EBITDA by 27% and 45% CAGR, respectively. At 7x this year adjusted EBITDA, Micron is a steal at an enterprise value of $133 billion when judged against an existing AI-fueled memory boom that has barely lifted off. As of August 5, 2025, the share is trading at $108.43 with the market cap of $121.34 billion and gross margins closing in on 37.33%. 

It might not pay very high dividends of 0.43% a year, but the stock has a potentially explosive upside should current momentum in the industry persist.

Cisco Systems

Cisco Systems, which at one point was the uncontested networking king, has spent at least the past five years battling pandemic chicanes, logistics crunches, and changing business demands. Customers slowed down hardware upgrades and macro headwinds accumulated as Cisco inventories swelled and the rate of revenue growth turned negative. However, against the backdrop, the company had been preparing a rebirth.

Today, Cisco is by far more than a hardware giant. By providing to enterprise clients a massive blend of branch networks, data center, security and collaboration services, Cisco has created a sticky ecosystem. More to the point, it could now be cashing in on subscription-based services and businesses that are fast developing in the spheres of cybersecurity and cloud observability.

Cisco on the road to recovery is factual. Coming after an exit cloud above (pandemic induced headwinds), the company is once at a stable business with new data center investments, not least those focused on AI-oriented loads. The analyst expects Cisco to experience revenue and earnings per share of CAGR 5 and 9%, respectively, over the next four years, between the fiscal years 2024 and 2027. 

Better still, Cisco is only 17x forward earnings, or low in the current market, and has a forward dividend value of 2.37%. It is not the suggestive rocket ship, but Cisco is a solid company with a serious dividend payout that provides a much-needed steady growth.

The SMSRP Now

Value investors will frequently hear that they need to be greedy when the rest of the market is fearful, and cautious when others are greedy. The S&P 500 is at new highs and finding growth is a rather intense mission of the search that is why making rational decisions now is rewarding. Although favorites still go at the shocking premiums, AT&T, Micron and Cisco offer appetizing ratings based on earnings and growth prospects relative to their justified prices.

AT&T provides steady growth and revenue, a good 4% dividend and robust wireless and fiber growth.

• Micron has high-growth potential, as it operates under the premise of an AI Supercycle and unequaled memory progress.
• Cisco It is a stable operator that is well placed with the resurgence of business infrastructure investments into the AI and cloud era.

The Things to Come

The three stocks look bright till 2027. The fact that AT&T looks into its core business should enable it to succeed even when macro uncertainty intensifies. The fact that Micron is also exposed to tailwinds such as AI and cloud has remained a source of outsized returns. The consistency in commitment to ecosystem-building and the crucial role Cisco played in the explosion of the AI-powered data center should help fuel continued top-and bottom-line expansion.

Cyber Inventory of course is not invulnerable. However, when financials are sound, valuations and growth catalysts are reasonable, it is hard to resist rare deals in an environment of rare deal-making, and AT&T, Micron, and Cisco represent just that. It is a chance for investors to move to a safer haven in the markets when the storm strikes but not at the cost of long-term potential.