The technology sector is constantly evolving, with emerging technology companies leading the charge in groundbreaking innovations. From quantum computing and artificial intelligence (AI) to biotechnology and autonomous systems, these companies are reshaping industries and unlocking new economic opportunities. Emerging technology firms focus on disruptive advancements that have the potential to transform traditional markets. These businesses operate across various fields, including AI, quantum computing, genomics, space technology, and robotics.
AI remains the Driving Force Behind Emerging Technologies
Among the technologies, AI stands out as the most influential technology of today. Many other advancements, such as automation, autonomous driving, and DNA analysis, are now seen as derivatives of AI. The World Economic Forum’s January 2025 white paper highlights how emerging technologies could significantly impact productivity by 2030. The commercialization of disruptive innovations—particularly AI—has the potential to drive substantial economic growth. According to the World Bank, a technology shock could increase productivity by 1.5% in advanced and 4.5% in emerging economies over a decade. However, AI’s actual impact will depend on how effectively businesses integrate it into their operations.
The report also underscores the importance of overcoming key challenges such as access to capital, talent shortages, and digital infrastructure gaps to fully realize productivity gains. While frontier technologies hold immense promise, broader adoption of accessible innovations can drive widespread economic improvements. For instance, advancements in energy and irrigation technologies are projected to enhance agricultural productivity, with precision farming increasing crop yields by up to 15%. Addressing these challenges is critical to harnessing the full potential of technology-driven growth.
In September 2024, McKinsey released an analysis of 15 key technology trends, highlighting the growing interest, innovation, and investment in robotics. Their experts noted that robots are becoming more versatile, expanding beyond traditional roles. With the integration of generative AI, robotics is now enhancing analytical capabilities, particularly in areas like inventory management.
The McKinsey report also pointed to rising interest in electrification, renewable energy, and quantum computing. Advances in cloud computing and connectivity are accelerating the global spread of innovations, shortening the time from scientific discovery to large-scale implementation. While this rapid progress drives economic and societal benefits, it also presents challenges, as disruptive technologies may outpace society’s ability to adapt. The report emphasizes the need for thoughtful planning to manage the broader implications of large-scale technological adoption.
Despite these challenges, the future of emerging technology companies remains highly promising, with continued innovation and investment set to reshape industries and economies worldwide.
We explored some of the relevant emerging technologies and have curated a list of 10 best names. While we looked at companies with as low as $300 million in market capitalization, the majority of our shortlisted companies are above $1.0 billion in market cap. Let’s have a look at these 10 companies.
A robotic process automation system in a modern datacenter.
Our Methodology
To determine the 10 best emerging tech stocks to buy now, we conducted extensive research to identify U.S.-listed companies at the forefront of innovative, emerging, and disruptive technologies. Our selection criteria included a market capitalization of at least $300 million. Additionally, we focused on stocks with a minimum potential upside of 10%, highlighting those with strong growth prospects. From the companies that met these criteria, we narrowed down the top 10 and ranked them in ascending order based on hedge fund ownership, using data from Q4 2024. This approach ensures that the selected stocks not only exhibit high innovation potential but also attract hedge funds’ interest.
Note: All pricing data is as of market close on March 7.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Emerging Tech Stocks to Buy Now
10. Innodata Inc. (NASDAQ:INOD)
Focus Area: AI-driven data transformation
Potential Upside: 58%
Number of Hedge Fund Holders: 15
Innodata Inc. (NASDAQ:INOD) is a data engineering solutions company that helps businesses convert unstructured data into actionable insights. It specializes in AI model training, data annotation, and digital transformation services, serving a diverse range of industries.
Innodata Inc. (NASDAQ:INOD) specializes in large-scale data labeling and structuring, a crucial component in training AI models. The company focuses on AI-powered data solutions, enabling businesses to scale machine learning and automation effectively. On February 20, Innodata reported its Q4 2024 earnings, delivering an impressive 127% year-over-year revenue growth, exceeding its own projections. Looking ahead to 2025, management anticipates a 40% revenue increase, driven by the company’s strong market position and the growing demand for high-quality training data and AI-driven automation. As AI adoption accelerates across industries, Innodata remains well-positioned to capitalize on this expanding opportunity.
After the results, a Maxim Group analyst raised his price target on the shares from $54 to $75, maintaining a Buy rating. His bullish stance was underpinned by the company’s strong Q4 earnings, above-consensus FY 2025 guidance and rising demand for high-quality data engineering. Additionally, expanding opportunities across big tech, enterprises, industry-specific AI models, federal agencies, public relations, and healthcare are expected to further fuel the company’s growth, as per the analyst.
9. Ouster Inc. (NASDAQ:OUST)
Focus Area: Digital LiDAR Sensor Technology
Potential Upside: 55%
Number of Hedge Fund Holders: 15
Ouster Inc. (NASDAQ:OUST) is a global leader in autonomous technology, developing systems that enable machines to operate safely without human intervention. The company manufactures high-resolution scanning and solid-state digital LiDAR sensors, which provide 3D vision for vehicles, robots, machines, and infrastructure. These sensors allow devices to detect, interpret, and navigate their surroundings, ensuring safe and efficient autonomous operation.
The demand for precision LiDAR (Light Detection and Ranging) technology is growing rapidly due to its applications in self-driving vehicles, smart cities, security systems, and advanced driver-assistance systems (ADAS). Ouster Inc. (NASDAQ:OUST) operates in a vast market, with a total addressable market estimated at $70 billion across automotive, industrial, robotics, and smart infrastructure sectors. The company targets long-term annual revenue growth of 30%-50% and gross margins between 35%-40%. While its Q4 2024 earnings report is expected on March 20, it has already reaffirmed its revenue guidance of $29-$31 million.
The stock currently has a consensus Buy rating, with a 1-year median price target of $12.5, implying a 55% potential upside. In mid-January, Craig-Hallum analyst Richard Shannon also reiterated his Buy rating on the shares.
