3 Beaten-Down Tech Stocks the Models Say Are Ridiculously Cheap

The Nasdaq 100 has been hard hit in recent sessions, closing more than 10% below its October 6 record high to enter correction territory. The trigger was doubt over how AI spending gets funded, which has hit chips and data-center names hardest. Services and software companies with less AI-capex exposure have been sold alongside them.

Source: Investing.com

That is where a screen of US tech stocks with market cap above $5B finds a few names whose price sits far below modeled fair value: EPAM Systems (NYSE:EPAM), Intuit (NASDAQ:INTU), and Salesforce (NYSE:CRM). Each has a compelling runway for future growth and meaningful upside from current levels.

1. EPAM Systems

EPAM Systems provides digital platform engineering, consulting, cloud, and software development services to large enterprises. Its business has been pressured by slower client spending, weaker discretionary technology budgets, and a broader pullback in consulting demand.

However, EPAM’s long-term opportunity remains attractive. It has partnered with frontier AI labs including Anthropic, OpenAI, Google, and Microsoft, and management has emphasized rebuilding software engineering processes around agentic systems, data modernization, and higher-value outcome-based engagements.

Many analysts note that EPAM is trading at a discount to its historical multiples and to other premium peers, despite still targeting double‑digit revenue growth when the cycle turns and maintaining healthy margins. Notably, the InvestingPro Fair Value models forecast a +60.9% potential upside from last night’s closing price of $138.17, which would take shares closer to $222.

Source: InvestingPro

In a risk‑off tape that has indiscriminately hit anything “IT services,” EPAM stands out as a structurally advantaged name mispriced for cyclical reasons.

2. Intuit

Intuit operates some of the best-known financial software platforms, including TurboTax, QuickBooks, Credit Karma, and Mailchimp. Its products benefit from recurring usage, strong customer relationships, and the growing need among consumers and businesses to manage taxes, accounting, payments, payroll, and personal finances digitally.

The company is one of the stronger buy-and-hold candidates on this list because it combines recurring revenue, a recognized brand, high switching costs, and multiple avenues for AI monetization. Despite this, INTU stock has been pulled lower with the broader software and fintech complex, creating an entry point at valuations that are more reasonable than at prior peaks.

The InvestingPro fair value estimate is $534.68, versus the current price of $344.72, implying 55.1% potential upside. Additionally, analysts remain broadly bullish, frequently highlighting Intuit’s combination of high-teens revenue growth potential, expanding margins, and strong free-cash-flow generation.

Source: InvestingPro

For investors looking for a high‑quality, AI‑enabled fintech and tax software leader that has been repriced by macro and sector sentiment rather than fundamentals, Intuit is a solid candidate.

3. Salesforce

As the leading customer relationship management (CRM) platform and a major player in sales, service, marketing, and data integration, Salesforce is another stock that looks more attractive as the Nasdaq corrects. Its subscription model provides recurring revenue and gives the company a large installed customer base to which it can sell new AI and automation capabilities.

Fears that AI could disrupt traditional CRM have eased as Salesforce has rolled out its own AI capabilities, including Einstein and Agentforce, its agentic AI platform, while the core CRM business continues to expand. Management has reiterated long-term revenue ambitions and pointed to improving order trends.

Analysts view the current valuation as compelling, with forward multiples well below historical averages for a company of this quality and scale. InvestingPro’s AI models predict a +51.2% potential upside. That would bring shares closer to their ‘Fair Value’ price target of $335.89.

Source: InvestingPro

In a choppy market questioning which software platforms can adapt and thrive in the AI era, Salesforce looks like one of the safer bets.

Bottom Line

Analyst fair value estimates across the three generally imply double‑digit to high double‑digit upside, and in each case the fundamental thesis is more about adaptation to AI and digital change than vulnerability to it.

For investors willing to lean into quality as the Nasdaq sells off, these three names are well worth a closer look.

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This content is for informational purposes only and not investment advice. Always conduct your own research.

At the time of writing, I am long on the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 via the SPDR Dow ETF (DIA), the SPDR S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). Additionally, I have a long position on the Energy Select Sector SPDR ETF (XLE) and the Health Care Select Sector SPDR ETF (XLV).

I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.

The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.

Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.