Finding attractive stocks in the financial markets is essential for investors trying to take advantage of expansion prospects. Seven stocks are among the most inexpensive to purchase and keep. These companies are on the cusp on cutting-edge processors, social media and artificial intelligence (AI), semiconductor technology, financial services disruption, cybersecurity solutions leadership, big data analytics specialization and audio streaming dominance. 

These businesses are at the top of their respective industries and setting new standards for innovation and profitability. Examining these companies’ fundamentals, like business practices, competitive positioning and game-changing technology, will help one understand why these stocks are considered excellent investments. Whether it’s how their processors are changing computing environments, their AI-driven digital ecosystem is growing or their deliberate focus on AI and data center advances, each firm provides solid arguments for investors looking for the best cheap stocks to purchase and keep. 

Here, the emphasis is on what distinguishes these businesses from the competition in the current market by highlighting critical elements that determine their potential and growth paths.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) designs and produces computer processors and related technologies. Sales in the client category reached $1.4 billion, up 85% from the previous year. Ryzen desktop and mobile CPUs are in high demand, and partners like HP (NYSE:HPQ) have been major adopters of these processors in business PCs. AMD’s client business has grown impressively as well, thanks in part to Ryzen CPUs. Additionally, strong market acceptance and adoption of Ryzen 8000 series CPUs across desktop and mobile platforms reflect the 85% rise in revenue. 

Indeed, with its AI accelerators and improved security features, the Ryzen Pro portfolio is designed with industry demands in mind. It has garnered popularity among commercial PC makers, putting AMD in a solid position to take market share in the enterprise PC space. Despite obstacles, particularly in the embedded area, advances in edge AI present significant potential. To sum up, AMD’s Ryzen processors have gained significant market acceptance in both consumer and commercial segments. These elements make AMD an ideal pick among the top undervalued stocks to buy and hold.

Meta Platforms (META)

Meta Platforms (NASDAQ:META) operates the largest social media network globally, including Facebook, Instagram and WhatsApp. With $36.5 billion in total sales in Q1 2024, Meta recorded a 27% year-over-year (YoY) rise in revenue. Its Family of Apps category contributes significantly to ad income and is the primary driver of this increase. In particular, the segment’s ad income increased by 27% to $35.6 billion compared to the previous year. Moreover, Meta’s worldwide revenue diversification strategy is seen in the multiple revenue streams across several geographic regions, with major gains in Europe (33% growth) and the Rest of the World (40% growth).

Further, with its Meta AI driven by the Llama 3 model, Meta has achieved significant advancements in AI research. This AI assistant is compatible with all of its social media platforms, including Messenger. These developments improve the user experience. They also set the stage for future revenue generation via targeted advertising and user engagement.

To conclude, Meta’s investments in AI and virtual reality (VR) technologies enhance user engagement and broaden its revenue streams, making it an attractive choice on the undervalued stocks to buy and hold list.

Intel (INTC)

Intel (NASDAQ:INTC) is a leader in semiconductor manufacturing, designing and microprocessor production for various computing devices. Over $2.1 billion was added to its operational profit year over year, bringing its operating margin to over 28% (Q1 2024). Despite sales issues, Intel Foundry is making attempts to enhance profitability. Intel’s operating profit decreased somewhat from the previous year. However, it may increase as the firm moves to more sophisticated nodes and improves factory utilization.

Additionally, high achievements include the commencement of Intel 20A manufacturing. The launch of Intel 14A utilizes high NA EUV technology. Intel’s position in the AI and data center sectors is strengthened by product launches such as the Intel Gaudi 3 AI accelerator. It promises 40% more efficiency and 50% quicker inference than competitors. Even with a $6.2 billion negative adjusted free cash flow, Intel is confident in its improvements, as good cost control and higher-than-expected gross margins contributed to an EPS that exceeded forecast.

Overall, Intel’s advancements in processor technologies and strategic investments in foundry capabilities position it as a key pick on the undervalued stocks to buy and hold list.

Block (SQ)

Block (NYSE:SQ) offers financial services and mobile payment solutions through its flagship app. Even though Block devotes less than 3% of its resources to Bitcoin (BTC-USD) related initiatives, its products are now a significant source of income. With very little in associated costs (0.7%) , Cash App’s bitcoin goods contributed 3.3% and 4.2% of Block’s gross profit in 2022 and 2023, respectively. This high-margin industry uses Block’s platform to generate extra income.

Moreover, Block has expanded the range of products it offers, such as Cash App Borrow, Cash App Card, and Buy Now, Pay Later, all of which help to drive the company’s revenue growth. The growth of ecosystem components like Paid in Bitcoin and Bitcoin Roundups increase user adoption and engagement and generates more money. Block’s TBD project intends to create a system for fiat-to-digital currency exchanges to upend the $860 billion global remittance market. Hence, this program takes advantage of a huge market opportunity and supports Square’s objective of democratizing financial access everywhere. 

To sum up, Block’s disruptive approach to financial services and expansion into cryptocurrency and digital payments make it an appealing choice for undervalued stocks to buy and hold.

Crowdstrike (CRWD)

Crowdstrike (NASDAQ:CRWD) provides cybersecurity solutions through its Falcon platform, which leverages AI and cloud technologies. The design of the Falcon platform is emphasized as a competitive moat that facilitates cybersecurity solution consolidation. Customers experience less complexity due to this consolidation, improving operational effectiveness and security. Customers who adopt several modules do so at significant rates: 65% adopt five or more modules, 44% adopt six or more, and 28% adopt seven or more modules. The platform’s stickiness and range of capabilities in meeting various cybersecurity demands are shown by its modular adoption.

Moreover, partnerships with major players in the market confirm Crowdstrike’s leadership in supplying cybersecurity solutions for cloud settings while improving product offerings. The speedy release of new solutions like Falcon for Defender and upgrades such as Falcon Cloud Security and Falcon Next-Gen SIEM showcase Crowdstrike’s adaptability and market response. Finally, Crowdstrike’s robust growth in revenue and profitability and strong customer retention rates make it one of the undervalued stocks to buy and hold.

Palantir Technologies (PLTR)

Palantir Technologies (NYSE:PLTR) specializes in big data analytics software, serving government agencies and large enterprises. The business recruited 41 net new clients in Q1 2024 alone in the U.S. commercial market, indicating a 69% YoY and 19% sequential growth. The business signed a seven-figure agreement five days after finishing a bootcamp with a utility provider, demonstrating a notable deal cycle shortening. Current clients are growing in size and the influence of their deployments. Lowe’s (NYSE:LOW) and General Mills (NYSE:GIS) are two examples of companies doing this.

Further, adjusted operating margin rose to 57% in Q1 2024. This indicates a balanced growth trajectory with concurrent adjusted operating margins and revenue growth increases. The company produced $149 million in adjusted free cash flow — a 23% margin reflects sharp cash management and operational edge. Adjusted expenditures grew by just 2% annually and sequentially, despite growth, highlighting strict cost management. In short, Palantir’s strategic contracts and consistent profitability make it an intriguing pick on the undervalued stocks to buy and hold list.

Spotify (SPOT)

Spotify (NYSE:SPOT) is the leading global audio streaming platform, offering music, podcasts and other audio content. The company reached a record-breaking Q1 2024 gross margin of 27.6%, an increase of 2.43% from the previous year. Favorable content costs and other operational efficiencies were the main drivers of this development, delivering a record-breaking operating income of 168 million euros. This indicates Spotify’s progress toward meeting its financial goals. Spotify was able to offset the impact of higher-than-expected social charge accruals by controlling costs and reducing operational expenditures.

Moreover, Spotify produced a positive 207 million euros in free cash flow during the first quarter, demonstrating excellent operational cash production capabilities. Spotify must maintain this positive cash flow position to fortify its financial position and reinvest in its expansion plans. It had 4.7 billion euros in short-term investments and cash in Q1 2024. Thanks to its strong liquidity, Spotify has the financial flexibility to fund its current operations and strategic initiatives.

Finally, Spotify’s focus on expanding its content library, enhancing the user experience through personalized recommendations and diversifying revenue streams through new features solidifies its presence on the undervalued stocks to buy and hold list.

As of this writing, Yiannis Zourmpanos held long positions in AMD, META, INTC and PLTR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.