Two Undervalued Tech Stocks Offering Best Bargains for $1,000 Investment in 2025

Why Pinterest Deserves Your Attention First

Pinterest (NYSE: PINS) stands out as one of the most overlooked opportunities in the technology sector right now. Trading at just 12.5x forward P/E based on 2026 expectations, the valuation appears surprisingly depressed for a company firing on all cylinders.

The numbers tell a compelling story. In its latest quarter, Pinterest demonstrated 17% year-over-year revenue growth, while adjusted earnings per share climbed 19% and adjusted EBITDA expanded 24%. These aren’t the metrics of a struggling platform—they’re indicators of genuine operational momentum.

What makes this performance even more impressive is the company’s fortress balance sheet: $2.7 billion in cash and securities with zero debt. The firm is tracking toward over $1 billion in free cash flow generation this year, providing substantial financial flexibility for future investments or shareholder returns.

The real growth engine lies in its international expansion. European revenue surged 41% last quarter while rest-of-world revenue jumped 66%. The company is simultaneously adding users and improving average revenue per user across these regions at remarkable rates.

Beyond geographic expansion, Pinterest has fundamentally repositioned itself from a simple vision-boarding platform into a shopping discovery ecosystem. The company developed its own multimodal large language model to power visual search and refined its recommendation algorithms. A new voice-activated AI shopping assistant now guides users toward product discovery, while Performance+—its AI advertising tool—helps brands optimize their targeting and bidding strategies with greater precision.

Even with conservative guidance issued due to tariff concerns and exposure to U.S. retail, Pinterest continues expanding meaningfully. At current valuations, the stock qualifies as a genuine best bargains opportunity.

Taiwan Semiconductor Manufacturing: The AI Infrastructure Play

TSMC (NYSE: TSM) represents another compelling best bargains candidate, trading at under 22.5x forward P/E despite the company’s extraordinary recent performance.

Last quarter alone, the world’s largest semiconductor contract manufacturer delivered 40% revenue growth. This pace of expansion speaks volumes about the surging demand for advanced chips used in data centers and consumer devices.

The company’s competitive moat appears nearly unassailable. TSMC dominates the foundry space through superior technological capability and unmatched manufacturing scale. Chip production demands relentless pursuit of smaller node sizes—fitting more transistors per unit of silicon—which translates to enhanced power and efficiency. While competitors struggle to achieve acceptable yields at volume, TSMC has become irreplaceable within the semiconductor supply chain.

TSMC now collaborates closely with leading chip designers to expand capacity and meet their anticipated requirements. This visibility has positioned the company to forecast that AI chip demand will expand at a mid-40% compound annual growth rate over coming years.

Pricing dynamics strongly favor TSMC’s bottom line. The company plans 3% to 10% price increases for advanced nodes in 2026, while its cutting-edge 2nm technology could command prices exceeding 50% higher than 3nm offerings. These pricing adjustments should meaningfully enhance gross margins given sustained AI data center investments showing no signs of deceleration.

The Investment Case

With just $1,000 to deploy, both stocks represent compelling opportunities. TSMC’s unmatched position within AI infrastructure buildout combined with its pricing power makes it worth holding long-term. Meanwhile, Pinterest’s international momentum, platform transformation, and fortress financial position suggest significant upside remains underappreciated by markets.

Each company displays the characteristics of best bargains in their respective domains: solid growth trajectories, expanding profit margins, and valuations that haven’t yet fully reflected their underlying quality and potential.