Tech Value Stocks Ride Memory Supercycle to Success
Value stocks have been leading the market higher in 2026, with some notable tech companies contributing to this trend. According to recent data, the Vanguard Morningstar Value ETF has returned 19.8% year-to-date, outperforming the Vanguard Morningstar Growth ETF's 9% return.
Micron Technology (MU) is one of the top-performing value stocks in the tech sector. The company has seen explosive growth due to a memory supercycle, with surging prices and revenue driven by a shortage that shows no signs of abating soon. Micron's forward P/E ratio is less than 5.5, keeping it classified as a value stock.
Cisco Systems (CSCO) is another tech stalwart helping lead the charge in value stocks. The company has seen strong demand for its networking equipment and security products, driven by both AI workloads and network traffic. However, Cisco's forward P/E ratio of 21 may soon push it out of the value category.
Texas Instruments (TXN) is also contributing to the value stock trend, with a nearly 50% increase in its share price this year. The company's growth is driven by both AI infrastructure and industrial demand, but its forward P/E ratio of 30 suggests that it may not remain cheap for long.