In the fast-paced investing world, where popular tech stocks often hog the limelight, a realm of undervalued gems lies quietly beneath the surface presenting an enticing opportunity for investors before the wider market catches on. This article explores three of the best undervalued tech stocks poised for growth and ready to awaken investor interest.

Timing is crucial, and investors who proactively seek tech sleeper stocks to buy can potentially achieve significant profits. These undervalued tech stocks hold the potential for substantial returns. By carefully identifying the best unknown tech stocks with strong growth potential, investors can strategically position themselves for success.

Plus, now is the time to get involved in the tech space. While the tech-heavy Nasdaq officially ended its bear market last month, it remains well below its late-2021 highs. With the valuations of many tech companies down by double digits, growth investors and value investors alike should consider buying the following high-potential tech sleeper stocks.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is a prominent semiconductor company that has recently emerged as an undervalued tech stock with significant potential.

AMD’s first-quarter earnings report revealed better-than-expected revenue and earnings, despite a slowdown in chip demand in enterprise and consumer spaces. While short-term economic headwinds may affect the company, its long-term prospects remain robust.

AMD’s product lineup encompasses cutting-edge chips designed for various applications, including data centers, video game consoles and consumer PCs. With the acquisition of Xilinx last year, the company has also entered the expanding edge computing market. Major players have been increasing their utilization of AMD’s EPYC processors, resulting in many AMD-powered public cloud instances.

Management expects a 19% decline in revenue for the second quarter compared to the previous year. However, indications of stabilization have emerged, and the company’s guidance suggests flat revenue on a sequential basis. Management is also optimistic about stronger demand in the latter half of the year, fueled by the upcoming launch of the Bergamo cloud-native server chip and the fourth-generation EPYC processor, Genoa.

AMD’s consumer business has shown promise, with revenue growth in the semi-custom system-on-chip division primarily fueled by robust demand for video game consoles. Also, management believes the first quarter marked the low point for the client processor business.

While the company may have limited exposure to the artificial intelligence (AI) trend, its strong product portfolio, commitment to innovation and potential for expansion make it a compelling choice for investors.

Cloudflare (NET)

Cloudflare (NYSE:NET) is another one of the undervalued tech stocks to put on your watch list, as it offers a promising opportunity in the rapidly growing content delivery networks (CDNs) sector. CDNs, local data servers positioned near end-users, enable faster content delivery and protect against cyber attacks. As a leading network provider, Cloudflare is vital in handling significant internet traffic.

Following a 20%-plus decline in shares after the company’s first-quarter earnings report, investors were quick to buy the dip, seizing the opportunity to pounce on the high-potential tech sleeper stock at discounted prices. Trading around $69 a share today, with a market cap of nearly $23 billion, the stock is about 17% below its 52-week high of $80.99 and still offers an enticing opportunity.

Cloudflare saw revenue growth in the first quarter of 37% year over year with a gross margin of 75.7%. The company also boasted record-high win rates against competitors, indicating its competitive strength. Improving profitability is another reason to consider investing in Cloudflare. Management’s 2023 guidance expects adjusted income from operations to be between $73 million and $77 million, with non-GAAP earnings of $0.34 to $0.35 per share.

Looking beyond 2023, Cloudflare’s earnings per share are projected to experience significant growth. The company’s subscription-based business model generates substantial revenue, offering free basic services and paid monthly plans ranging from $25 to $250. In Q1, Cloudflare experienced significant growth by acquiring 114 new large customers, resulting in a total count of 2,156.

Considering these factors, investors can capitalize on Cloudflare’s growth potential, making it an attractive choice.

Uber Technologies (UBER)

Uber Technologies (NYSE:UBER) has defied expectations with its earnings results, impressing investors and solidifying its position as one of the best-performing stocks in the tech industry over the past year. Experiencing remarkable growth, Uber is one of the best hidden tech stocks out there.

Despite its origins as a ride-hailing service, Uber has effectively transformed into a logistics software company. This strategic expansion has allowed Uber to broaden its scope and capitalize on new opportunities in the market. The introduction of Uber One, a subscription service with 12 million subscribers, has been a game-changer for the company. With various advantages for businesses, this service has completely transformed the ride-hailing experience.

By offering perks such as discounted rides, free Uber Eats deliveries and priority airport pickups for a monthly fee of $9.99, Uber has created a more convenient and enticing experience for its customers. This subscription model also provides a steady and predictable revenue stream.

With its evolving business model, the company is primed for long-term success. Its innovation makes it one of the best tech sleeper stocks to buy. While the market may not fully realize its potential yet, UBER should certainly be on savvy investors’ watch lists.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.