Ten undervalued tech stocks riding a wave of rising capital spending

Amid evolving conditions across the US stock market, information technology companies remain in focus as investors assess business expansion, infrastructure investments, and changing demand trends across the sector.

Against this backdrop, companies with rising capital expenditure and attractive valuations are drawing attention as investors evaluate opportunities linked to technology upgrades, production capacity, and long-term growth.

The information technology sector encompasses a broad range of businesses, including semiconductor manufacturers, electronic equipment suppliers, data infrastructure providers, and technology hardware companies.

Higher CapEx growth can indicate increased investment in manufacturing capabilities, equipment, and infrastructure, while favorable Valuation ratings suggest that these stocks also screen well on relative valuation metrics.

Below is a list of the 10 information technology stocks ranked according to their year-over-year CapEx growth percentage, along with their Seeking Alpha Valuation ratings.

The list is led by Fastly, Inc. FSLY, which recorded year-over-year CapEx growth of 254.65% and carries a Valuation rating of A. Sanmina Corporation SANM follows with growth of 184.47% and an A rating, while Lumentum Holdings Inc. LITE ranks third with CapEx growth of 95.37% and an A rating.

Micron Technology, Inc. MU and Flex Ltd. FLEX complete the top five, with growth rates of 93.68% and 63.12%, respectively. Diodes Incorporated DIOD and Super Micro Computer, Inc. SMCI also stand out with A+ Valuation ratings, while ACM Research ACMR, Western Digital WDC, and Arrow Electronics ARW round out the top 10.

Here is the list:

• Fastly, Inc. FSLY, CapEx growth: 254.65%, Valuation: A

• Sanmina Corporation SANM, CapEx growth: 184.47%, Valuation: A

• Lumentum Holdings Inc. LITE, CapEx growth: 95.37%, Valuation: A

• Micron Technology, Inc. MU, CapEx growth: 93.68%, Valuation: A

• Flex Ltd. FLEX, CapEx growth: 63.12%, Valuation: A

• Diodes Incorporated DIOD, CapEx growth: 51.37%, Valuation: A+

• Super Micro Computer, Inc. SMCI, CapEx growth: 48.73%, Valuation: A+

• ACM Research, Inc. ACMR, CapEx growth: 48.70%, Valuation: A-

• Western Digital Corporation WDC, CapEx growth: 47.04%, Valuation: A

• Arrow Electronics, Inc. ARW, CapEx growth: 30.99%, Valuation: A+