Three Undervalued Tech Stocks Poised for a Turnaround in 2026

The artificial intelligence boom that began in 2023 has rewarded growth investors handsomely, but it’s also created a graveyard of once-thriving companies now trading at bargain-basement valuations. Not all of these casualties deserve their fate. Some represent genuine value opportunities for patient investors willing to bet on a rebound. Here are three candidates worth putting on your radar: The Trade Desk (NASDAQ: TTD), Adobe (NASDAQ: ADBE), and PayPal Holdings (NASDAQ: PYPL).

PayPal: Profiting From Pessimism Through Strategic Buybacks

PayPal may lack the glamorous growth story that captivates Wall Street, but there’s something quietly powerful happening behind the scenes. Trading at just 10 times forward earnings—the cheapest of our three picks—PayPal finds itself in an enviable position despite mounting competition from other payment processors.

The real magic lies in PayPal’s aggressive share repurchase program. While the market has written off the company, management is methodically buying back stock at depressed prices. This approach generates a powerful compounding effect: even as revenue growth remains modest in the mid-to-high single digits, the shrinking share count lifts diluted earnings per share at a noticeably faster clip. For investors who understand how buybacks work in a bear market, this is textbook value investing. If PayPal maintains its discipline, the market will eventually be forced to reassess. That’s when real returns materialize.

The Trade Desk: Growth at a Discount

Most investors view The Trade Desk as a cautionary tale of disruption. When the company introduced its AI-powered ad-buying platform Kokai, execution stumbled. Some customers departed entirely; others trimmed their usage. Add Amazon’s growing dominance in digital advertising—backed by superior first-party consumer data—and you understand why TTD plummeted more than 70% from its peak, becoming one of the S&P 500’s worst performers in 2025.

Yet here’s where sentiment diverges from reality. Despite all these headwinds, The Trade Desk continues expanding its top line. Third-quarter revenue climbed 18% year-over-year, and Wall Street projects 16% annual growth for 2026. This is a company still firing on all cylinders from a revenue perspective, even as its stock gets treated like a pariah.

At 18.5 times forward earnings, The Trade Desk trades below the broader S&P 500 multiple of 22.1 times. When you find a company growing faster than the market average yet trading at a discount, you’ve typically found an opportunity. The question is whether management can restore confidence. Early signs suggest they’re on the right path, making TTD worthy of consideration for contrarian value investors.

Adobe: Thriving Despite Disruption Fears

Few companies have faced more existential skepticism than Adobe. When generative AI tools began creating sophisticated images, the assumption became inevitable: professional design software would become obsolete. After all, why hire Adobe Creative Suite when an AI can generate mockups instantly?

Adobe’s response was telling. Rather than resist the technology, the company embraced it, weaving generative AI capabilities directly into its platform. The bet is that branded, professional-quality content will always command a premium—even if assisted by machine learning.

The data supports this thesis. Since the AI revolution kicked off, Adobe’s growth trajectory has remained essentially flat, defying predictions of disruption. The company hasn’t stumbled; it’s simply continued doing what it does best. Yet Wall Street’s faith has evaporated, pushing the stock to trade at just 14.4 times forward earnings—a historically attractive entry point.

For investors seeking a quality business at a value price, Adobe fits the mold. It’s not the flashiest turnaround story, but it’s precisely this kind of boring resilience that often generates outsized returns.

The Timing Question

Value investing requires patience. These three companies won’t double overnight. But they share a common thread: each trades well below historical valuation ranges despite maintaining fundamental stability or growth. The market has priced in catastrophe; reality may prove far less dire. For investors with a 2026 horizon and conviction in a mean reversion trade, the opportunity to build positions at distressed prices may not last long.