2 Overhyped Tech Stocks to Buy in 2026

In 2024, tech stocks remain the hottest and most profitable stocks to own in the market. Their recent market domination and overall performance can be traced back to the AI boom, and it does not look like the sector will be coming off its pedestal anytime soon. However, this now overshadows some underperformers you might overlook unless you pay close attention:

• Following the AI boom, the tech sector continues to dominate the stock market, and because of this, several poor-performing stocks are going under the radar.
• Microchip and semiconductor giant Intel’s recent exploits in the AI space aren’t going as planned, and the company’s stock is experiencing a downward spiral in the market.
• Like Intel, video game giant Roblox has recently had one of its worst years in the stock market. As of the time of writing, the company’s stock is down 53%.

It’s normal for poor-performing stocks in a hot sector to go under the radar, and investing in these stocks can be highly detrimental to an investor’s portfolio. Joel Lim, a financial analyst at Trading.biz, has identified two overhyped tech stocks that investors should avoid in the foreseeable future.

Intel

Intel’s recent quarterly financial report tells the story of a company that has failed to live up to investor expectations. In the reports, Intel’s share price has fallen by 8% and is down by 35% in the Year-to-date (YTD) index.

These numbers make it one of the worst-performing securities listed on the S&P index, showing that it is among the stocks that are thoroughly overhyped that investors should avoid for the foreseeable future.

Much of Intel’s market woes are due to its recent pivot to a microchip foundry from computer chip and semiconductor production. It launched its flagship AI microchip, Gaudi 3, early in the year.

The chip is used for training AI models and chatboxes and is rumored to be twice as efficient and faster than Nvidia’s own AI microchip. Despite this, it continues to perform poorly in the market.

Joel Lim notes, “When you consider all the relevant metrics, it’s easy to see that Intel is one of the most overhyped tech stocks. It could rebound in time, but it’s best to stay away from it for now.”

Roblox

Roblox’s recent quarterly earnings report shows that, just like Intel, it is performing poorly in the market. Its share price is down by 22%, and its stock price has fallen by 53%, the most it has dropped since the company went public in March 2021.

The video game giant is undoubtedly one of the most overhyped tech stocks this year, though the sector’s overall performance overshadows that. In quarter one, it posted a loss of 43 cents, barely beating Wall Street’s prediction of 53 cents. These numbers have cast doubt over its announcement of delivering 20% revenue growth over the next few years.

Joel Lim notes, “Roblox is a no-go area for investors. Even if you are interested in the stock, you should wait until it makes some positive gains before buying it.”