These are the cheapest tech stocks today following the severe drawdown in the sector

Published Wed, May 25 202211:24 AM EDT

After the carnage in tech stocks this year, CNBC Pro went searching for some of the cheapest names in the sector. Investors are turning away from names in the sector as rising inflation weighs on technology companies, and Wall Street deliberates how much lower those stocks have to fall. The Nasdaq Composite , which is dominated by tech companies, is down 27% this year and trading in bear market territory. Some of those names are starting to look like bargains relative to historical valuations, according to a CNBC Pro review of FactSet data. Tech stocks that surfaced in our screen are trading at a steep discount when compared to their historical price-to-earnings ratio. CNBC evaluated the companies' current forward P/E versus their average forward P/E of the last five years to find those trading at the biggest discount to their historical valuation. (The forward P/E ratio of a company is based on earnings estimates for the next 12 months.) Here are the cheapest tech stocks: A slew of chip stocks are looking like bargains after their drawdown. With the PHLX Semiconductor Sector Index (SOX) off nearly 28% year to date, Bank of America analysts said this week that several factors could act as recovery catalysts for the space. An easing of China lockdowns, or signs of healthy consumer demand for PCs and smartphones, could boost semiconductor names, they said. Advanced Micro Devices is currently trading at a near 50% discount compared to its average forward P/E of the last five years. Other semiconductor names, such as Qualcomm , Micron Technology and Nvidia , are also trading at steep discounts relative to their average forward earnings multiples. Another name that popped up on our list is Facebook-parent Meta , which is down more than 46% in 2022 and is trading at a 39% discount relative to its historical valuation. Guggenheim Securities analysts last week called the stock a buy, as the company is expected to improve on ad trends going into the second half of the year. They also liked the long-term prospect of the metaverse initiatives from the company. Google-parent Alphabet is also looking like a bargain after shares dropped 27% this year. Shares are trading at a 31% discount from their historical P/E ratio. Analysts at JMP Securities said in a Wednesday note that they believe "AI is improving nearly every segment of Alphabet's business" after Google's Marketing Live event this week. JMP reiterated a market outperform rating and a $3,300 price target on the company, saying the automation of ad creation will lead to better returns for Google. Other names included in this list are PTC , Skyworks , Qorvo and Western Digital .