AI heavyweight Anthropic just reported nearly US$17b in revenue and moved into profit, which shows how quickly certain pockets of technology can flip from concept to cash generator. When market headlines fixate on hot inflation and rate risks, some tech stocks quietly get priced as if the story is over. This article highlights three US tech stocks that currently look overlooked on our value screen.
The three stocks below are just a small sample from a much larger pool. Our full undervalued tech screen surfaces 129 more companies that carry similarly compelling stories that are not covered here.
If you want to quickly identify and analyze potential ideas for your own watchlist, head straight into the Undervalued Tech screener.
Braze (BRZE)
Overview: Braze runs a customer engagement platform that helps tech focused brands use real time data and AI to personalize marketing across channels.
Operations: Braze generates about US$834 million from its customer engagement platform, with roughly US$460 million from the United States and US$375 million internationally.
Market Cap: US$3.2b
For an undervalued tech theme, Braze matters because its tools power the personalized growth engines that many software and digital businesses depend on.
"Braze's acquisition of OfferFit is expected to enhance AI-driven optimization capabilities and lead to revenue growth through deal size expansion and differentiation in the market."
What could significantly influence the story is how one quiet pressure around future profitability and free cash flow ultimately resolves.
That pressure point is exactly where the story could accelerate, and the full narrative for Braze explains how Braze balances its AI ambition with its path toward durable cash generation.
Accenture (ACN)
Overview: Accenture helps large organisations modernise operations by delivering data, AI, cloud, and automation projects across consulting, technology services, and outsourcing.
Operations: Accenture generates about US$22.5b from Products clients, US$15.2b from Health & Public Service, US$14.0b from Financial Services, US$12.7b from Communications, Media & Technology, and US$9.9b from Resources.
Market Cap: US$128.1b
Accenture gives the Undervalued Tech theme a different flavour, because its AI and cloud work is wrapped inside long running transformation and outsourcing contracts rather than pure software licences.
"The market is asking whether Accenture can convert AI from a threat into a growth engine."
What could quietly reset the market’s view is how one unresolved tension between AI driven efficiency and consulting profitability ultimately plays out.
How that efficiency trade off resolves sits at the heart of the full narrative for Accenture, which maps where Accenture’s AI opportunity could accelerate from here.
Oracle (ORCL)
Overview: Oracle delivers cloud software, databases, and infrastructure that help large organisations run critical operations and shift workloads into Oracle Cloud.
Operations: Oracle generates about US$62.8b from cloud and software, US$5.8b from services, and US$3.2b from hardware.
Market Cap: US$395.8b
Oracle matters for the Undervalued Tech theme because its traditional database stronghold is being retooled into a full cloud and AI infrastructure platform that underpins heavy compute demand.
"In 2024, OpenAI expanded its cloud footprint to include Oracle Cloud Infrastructure (OCI), positioning OCI as a key extension of the Microsoft Azure AI platform and validating that Oracle’s Gen2 AI infrastructure could compete head to head with the largest hyperscalers on both performance and cost-effectiveness."
What could really shift the story is how one quiet question around funding those AI build outs ultimately feeds through to free cash flow.
That funding question is exactly what the full narrative for Oracle unpacks, explaining how Oracle could potentially turn significant AI-related spending into increased cash generation and greater strategic flexibility.
Seeking Fresh Alternatives Before They Fly
Markets move fast and the best breakout ideas rarely stay under the radar for long. Scan fresh momentum before the crowd, while it matters, and look for opportunities early.
- Track income-first plays that aim to keep cash coming in as rates shift by reviewing the 7 dividend fortresses curated for resilient payout potential.
- Spot early movers in automation and factory intelligence before momentum is fully caught by checking the hand picked 91 robotics and automation stocks universe.
- Follow the build out of next generation power networks while valuations still look reasonable through the carefully filtered 42 power grid technology and infrastructure stocks list.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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