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.
8. Symbotic Inc. (NASDAQ:SYM)
Focus Area: AI-powered warehouse automation
Potential Upside: 42%
Number of Hedge Fund Holders: 16
Symbotic Inc. (NASDAQ:SYM) focuses on the development, commercialization, and deployment of cutting-edge technology solutions designed to enhance supply chain efficiency. The company builds both the hardware and software essential for automating supply chain processes, enabling customers to streamline depalletizing, storage, selection, and palletization within warehouse operations.
Symbotic Inc. (NASDAQ:SYM) collaborates with some of the world’s largest retailers, including Walmart, Albertsons, and C&S Wholesale Grocers, to transform large-scale distribution centers through automation. Its solutions incorporate autonomous robots and AI-powered software, leveraging computer vision, robotics, and machine learning to optimize inventory movement while reducing dependence on manual labor. Unlike conventional warehouse automation methods such as conveyor belts and manual sorting, the company’s AI-driven robotic system continuously self-learns, adapting to ever-changing inventory needs. This advanced technology enables clients to move goods with unparalleled speed, accuracy, efficiency, and flexibility.
As of Q1 2025 (fiscal year ending in September), the company reported an impressive 44% year-over-year increase in last twelve-month revenue, along with a robust backlog of $22.4 billion. Symbotic Inc. (NASDAQ:SYM) estimates a massive $432 billion total addressable market for one-time operator system sales in company-owned warehouses. Additionally, it projects an annual warehouse-as-a-service market opportunity exceeding $500 billion.
Following the announcement of its Q1 earnings, Cantor Fitzgerald analyst Derek Soderberg reaffirmed his Buy rating on the stock, maintaining a $60 price target. Similarly, TD Cowen’s Joseph C. Giordano reiterated his positive stance, also issuing a Buy rating with a $45 price target. Both forecasts are significantly above the one-year median price consensus estimate of $33, suggesting a potential 42% upside.
7. Pony AI Inc. (NASDAQ:PONY)
Focus Area: Autonomous driving technology
Potential Upside: 32%
Number of Hedge Fund Holders: 20
Pony AI Inc. (NASDAQ:PONY) is an autonomous driving technology company focused on developing self-driving solutions for both passenger and commercial transportation. Its AI-driven mobility offerings include robotaxi services and autonomous freight transport, aiming to revolutionize the future of mobility.
Pony AI Inc. (NASDAQ:PONY) competes in the Chinese autonomous driving market, with the likes of Tesla Inc. (NASDAQ:TSLA). The company leverages its proprietary Virtual Driver technology, an advanced self-driving system designed to work across multiple vehicle types. By integrating its custom-built software, hardware, and services, the company delivers a scalable and reliable autonomous driving solution. Its long-term objective is to establish a sustainable business model by facilitating the widespread adoption of self-driving technology across various transportation sectors.
Unlike competitors that rely on vision-based approaches, Pony AI Inc. (NASDAQ:PONY) employs a hybrid sensor system, incorporating LiDAR, cameras, and radar to enhance safety and precision in navigation. The company focuses on Level 4 autonomous driving, which refers to fully automated driving capabilities without human intervention under specific conditions.
Recently, Pony AI launched paid robotaxi services across multiple locations and high-traffic routes in China, making it the first and only company authorized to operate robotaxi services on these major routes. This milestone highlights the company’s progress in commercializing autonomous ride-hailing. Recognizing this potential, Deutsche Bank analyst Bin Wang had initiated coverage on Pony AI Inc. (NASDAQ:PONY) in mid-January with a Buy rating and a $20 price target. Wang had emphasized the huge growth potential in the robotaxi market, estimating that the company’s ‘Robotaxi’ and ‘Robotruck’ businesses will account for an increasing share of total revenue—rising from 58% in 2024 to 97% by 2030.
6. AST Spacemobile Inc. (NASDAQ:ASTS)
Focus Area: Space-based cellular broadband
Potential Upside: 14%
Number of Hedge Fund Holders: 22
AST Spacemobile Inc. (NASDAQ:ASTS) is an innovative satellite communications company that is developing the first satellite-based broadband network designed to provide direct-to-mobile connectivity without requiring specialized satellite phones. The company’s technology leverages low earth orbit (LEO) satellites to deliver high-speed, reliable communication services, enhancing mobile connectivity.
AST Spacemobile Inc. (NASDAQ:ASTS) is making waves in the telecommunications industry by combining space technology with mobile networks to deliver affordable, high-speed cellular broadband. The company is well-positioned to capitalize on the increasing demand for global mobile connectivity, particularly in remote and underserved areas that lack reliable service or fall outside traditional cellular coverage. By integrating satellite technology with existing mobile networks, AST Spacemobile creates valuable partnership opportunities with telecom providers and is currently at a late-stage pre-commercialization phase and expects to rollout services in 2026.
According to its October 2024 investor presentation, approximately 90% of the Earth’s surface lacks cellular coverage, and 5.6 billion mobile devices frequently lose signal. The company projects a $67 billion market for satellite direct-to-device communications between 2023 and 2030, implying bright future prospects for the company.
5. Plug Power Inc. (NASDAQ:PLUG)
Focus Area: Hydrogen fuel cell technology
Potential Upside: 12%
Number of Hedge Fund Holders: 24
Plug Power Inc. (NASDAQ:PLUG) specializes in hydrogen fuel cell technology and green hydrogen solutions. The Company focuses on building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation to help customers meet business goals and decarbonize the economy, as well as provides material handling, e-mobility, power generation, and industrial applications.
Fuel cells are electrochemical devices that combine hydrogen and oxygen to produce electricity and heat without combustion. Hydrogen is the most abundant element in the universe, and hydrogen fuel cells produce only water and heat as by-products, making them an environmentally friendly alternative to fossil fuels. The company is the largest buyer of liquid hydrogen and has deployed more than 72,000 fuel cell systems for forklifts and more than 275 fuelling stations, as of December 2024.
In FY 2024, Plug Power Inc. (NASDAQ:PLUG) reported revenue of $629 million and as per its November 2024 investor presentation, it aims to reach over $3.5 billion in revenue by 2030 and to improve its gross margin to around 30% from a gross loss currently. It sees a total addressable in excess of $1.0 trillion in Stationary Power & Data Centers and over $55 billion in material handling vehicles space.
4. Aurora Innovation Inc. (NASDAQ:AUR)
Focus Area: Self-driving vehicle technology
Potential Upside: 27%
Number of Hedge Fund Holders: 27
Aurora Innovation Inc. (NASDAQ:AUR) is a self-driving technology company focused on developing autonomous vehicle solutions for freight and passenger transportation. The company is building the Aurora Driver, an AI-powered system designed for self-driving trucks and cars. The system consists of sensors, software, and hardware, and can be installed in passenger or commercial vehicles to convert them into self-driving vehicles.
Aurora Innovation Inc. (NASDAQ:AUR) is a development-stage company and still not reporting any revenue. However, the market responded cheerfully to its Q4 2024 financial update on February 12, as the management appeared confident for the commercial launch of its Aurora Driver systems on the Dallas-Houston route in April 2025.
Apart from the launch, the company aims to report a gross profit in 2026. For Q4, it reported a net loss of $193 million, marginally lower than the loss in Q4 2023. It also had $1.25 billion in cash & cash equivalents as of December 2024. Aurora is targeting to operate in a 50 billion vehicle miles traveled (VMS) serviceable addressable market (SAM) by the start of 2028. With backing from major investors and strategic partnerships with leading transportation companies, Aurora Innovation Inc. (NASDAQ:AUR) is well-positioned to capitalize on the shift toward autonomous logistics.
3. IonQ Inc. (NYSE:IONQ)
Focus Area: Quantum computing solutions
Potential Upside: 131%
Number of Hedge Fund Holders: 28
IonQ Inc. (NYSE:IONQ) specializes in quantum computing hardware and software, developing a general-purpose trapped-ion quantum computer along with software designed to create, optimize, and execute quantum circuits.
The company’s appeal as an emerging technology leader is evident in its mission: “To build the world’s best quantum computers to solve the world’s most complex problems, transforming business, society, and the planet for the better.” IonQ Inc. (NYSE:IONQ) was among the first to successfully commercialize quantum computing and generate revenue, securing partnerships with several of the world’s largest enterprises.
Its stock has experienced significant volatility, delivering a 237% return in 2024 but losing 50% of its value in 2025 year-to-date following unfavourable remarks from Nvidia’s CEO. Despite this, the potential for quantum computing remains immense. According to the McKinsey Quantum Technology Monitor, the industry’s total addressable market could reach approximately $85 billion by 2035. Additionally, with expanding applications, quantum computing and networking could generate up to $880 billion in economic value by 2040 (source: company presentations).
After reporting strong quarterly earnings on February 26, a Benchmark analyst reaffirmed a Buy rating on the stock, though the price target was revised down from $50 to $45. The analyst remains optimistic about the company’s future, citing “strong progress across technical and operational fronts”.
2. GeneDx Holdings Corp. (NASDAQ:WGS)
Focus Area: Genetic testing services
Potential Upside: 12%
Number of Hedge Fund Holders: 32
GeneDx Holdings Corp. (NASDAQ:WGS) is a genomics and precision medicine company specializing in genetic testing, next-generation sequencing (NGS), and AI-powered diagnostics.
The company leverages next-generation sequencing (NGS) and AI-driven genomic analysis to improve early disease detection and advance personalized medicine. Its focus is on identifying rare genetic diseases, pediatric disorders, and hereditary conditions, enabling early diagnosis, more informed treatment decisions, and better patient outcomes. By utilizing whole genome and exome sequencing, GeneDx Holdings Corp. (NASDAQ:WGS) provides deeper insights than standard genetic tests. Unlike traditional diagnostic labs, it integrates large-scale genomic databases with AI models to enhance diagnostic accuracy.
GeneDx has a strong competitive edge due to the size, breadth, and depth of its genomic database. It holds an 80% market share among genetics experts and sees a $45 billion market opportunity over the next five years.
On February 20, a Wells Fargo analyst raised the stock’s price target from $75 to $105 while maintaining an Equal Weight rating. The upward revision was based on strong Q4 earnings and 2025 revenue guidance, which exceeded consensus estimates by 5%—a target the analyst still considers conservative.
1. Beam Therapeutics Inc. (NASDAQ:BEAM)
Focus Area: Gene editing via base editing
Potential Upside: 58%
Number of Hedge Fund Holders: 35
Beam Therapeutics Inc. (NASDAQ:BEAM) operates as a biotechnology company and develops DNA base editing technologies for the treatment of diseases.
Beam Therapeutics’ specialization lies in base editing which is potentially the best-in-class gene editing technology. This technology allows precise modifications without cutting the DNA strands. Such an approach aims to treat genetic diseases with high specificity and reduced risks. Their technology offers potential advantages over traditional gene-editing methods. As of the end of December 2024, the company had over $850 million in cash which was expected to fund operations till 2027.
On February 11, William Blair analyst Sami Corwin reiterated his Buy rating on Beam Therapeutics Inc. (NASDAQ:BEAM). His bullish outlook was driven by progress toward clinical trials of its BEACON trial of BEAM-101 therapy to treat sickle cell disease. In addition, it is expected to release clinical data in a number of therapies by mid-2025 which should also act as catalysts for share price. On the other side, a Scotiabank analyst also raised his price target on the shares to $25 from $24, but kept a Sector Perform rating due to his cautious stance on upcoming clinical data releases.
While we acknowledge the potential of BEAM to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BEAM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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