In this article, we will take a look at the 10 best low-priced technology stocks to buy now.
The Rising Significance of Technology: Is Now the Time to Invest?
The technology sector plays a crucial role in the modern economy, encompassing a wide range of industries. This sector can include businesses involved in electronics, software, artificial intelligence (AI), and information technology, among others. As companies increasingly rely on technological innovations to enhance productivity and efficiency, the technology sector is poised for growth as it becomes essential for both consumers and businesses.
Recent trends indicate a significant shift towards AI, cloud computing, and cybersecurity as key drivers of growth. Enterprise spending in these areas is expected to increase, driving growth in the global tech market.
Generative AI is becoming more important than ever as a vital tool for many organizations, marking a significant shift from experimentation to practical application. According to the latest McKinsey Global Survey on AI, conducted in the first half of 2024, 65% of respondents indicated that their companies are now regularly utilizing generative AI, nearly double the figure from just ten months prior. This surge in adoption reflects a growing belief in the technology’s potential, with 75% of respondents anticipating that generative AI will bring about substantial changes in their industries in the coming years. The overall adoption of AI has also seen a notable increase, rising from around 50% to 72% over the past year.
Technology-oriented stocks are set to achieve another impressive year by the end of 2024, according to U.S. Bank Asset Management. As of mid-December, the S&P 500 Communication Services and Information Technology index has risen over 40% year-to-date, following a remarkable 57% increase in 2023. Although technology stock performance slowed down in the third quarter of 2024, it regained momentum in the fourth quarter. According to Rob Haworth, senior investment strategy director for U.S. Bank Asset Management, corporate investments in artificial intelligence (AI) applications continue to drive this growth, even though the pace of AI spending eased slightly in the third quarter.
Investors are attracted to the tech sector because of its innovative nature. Terry Sandven, chief equity strategist with U.S. Bank Asset Management, emphasizes that technology is crucial for improving speed and efficiency across various industries. While the sector can experience short-term fluctuations, Sandven remains confident about its long-term prospects, as companies seek growth through technology rather than simply hiring more staff. Haworth shares this optimism, noting that technology stocks are central to current economic expansion and benefit significantly from business capital investments. However, he notes that investors still need to be careful in their approach to this sector. While some tech startups achieve great success, others may fail to get off the ground.
With this background in mind, let’s take a look at the 10 best low-priced technology stocks to buy now.
An executive overlooking a modern technology facility, emphasizing the cutting-edge solutions the company provides.
Methodology
To compile our list of the 10 best low-priced technology stocks to buy now, we used the Finviz stock screener. We sorted our results based on market capitalization and picked the top 25 technology companies with a share price of under $10 as of December 24, 2024. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds. The 10 best low-priced technology stocks to buy now were then ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2024.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Low Priced Technology Stocks To Buy Now
10. Sprinklr Inc. (NYSE:CXM)
Share Price as of December 24: $8.94
Number of Hedge Fund Holders: 24
Sprinklr Inc. (NYSE:CXM) is a software company that specializes in customer experience management (CXM). It offers a Unified-CXM platform designed to enhance collaboration among customer-facing teams across various functions, including customer care and marketing. This unified, AI-powered platform enables businesses to communicate effectively across digital channels and deliver personalized customer experiences at scale. Sprinklr Inc. (NYSE:CXM) ranks among the best low-priced stocks to buy in the technology sector.
In the third quarter of 2024, the company reported total revenue of $200.7 million, which is an 8% increase compared to the same quarter in the previous year. Subscription revenue reached $180.6 million, reflecting a 6% year-over-year growth. Sprinklr Inc. (NYSE:CXM) has expanded its customer base to over 1,800 clients, including more than 60% of the Fortune 100. Notably, at the end of the third quarter, the company had 147 customers who contributed $1 million or more in subscription revenue over the past 12 months. This represents a 20% increase compared to the same time last year.
Despite this strong performance in Q3 2024, Sprinklr Inc.’s (NYSE:CXM) management acknowledged challenges related to rising data and hosting costs as the company launches new cloud environments to address new business opportunities. The company is actively working to improve efficiency and professional services margins, which suggests a proactive approach to addressing operational challenges. Given its solid revenue growth, expanding customer base, and commitment to innovation in customer experience management, Sprinklr Inc. (NYSE:CXM) presents a compelling investment opportunity.
9. Sabre Corporation (NASDAQ:SABR)
Share Price as of December 24: $3.74
Number of Hedge Fund Holders: 25
Sabre Corporation (NASDAQ:SABR) is a leading software and travel technology company that provides global distribution systems (GDS) for air bookings. The company connects airlines, hotels, travel agencies, and other partners through its comprehensive suite of travel and hospitality solutions. Sabre Corporation’s (NASDAQ:SABR) technology helps streamline the booking process and enhances the overall travel experience for consumers and businesses alike. Through its technology, the company powers mobile apps, airport check-in kiosks, online travel sites, airline and hotel reservation networks, travel agent terminals and many more solutions.
In Q3 2024, the company launched SabreMosaic, an innovative AI-powered platform designed to modernize airline retailing. This next-generation offer-and-order system aims to replace traditional Passenger Service Systems (PSS) by enabling airlines to create personalized offers that go beyond just seat selections. With 10 new product suites and features like quoting, ordering, billing, and delivery, SabreMosaic positions Sabre Corporation (NASDAQ:SABR) at the forefront of travel technology.
In the third quarter of 2024, the company also announced key partnerships with Virgin Australia and Riyadh Air, alongside expanded collaborations with major clients such as Delta and WestJet. These partnerships enhance Sabre Corporation’s (NASDAQ:SABR) market position and demonstrate its commitment to providing cutting-edge solutions to its clients.
Additionally, in November 2024, Sabre Corporation (NASDAQ:SABR) introduced Sabre Red Launchpad, a user-friendly interface designed to simplify the booking process for travel agents. This tool leverages AI capabilities and offers access to a wide range of content. By streamlining the reservation process, Sabre Red Launchpad enables agents to earn commissions more quickly. Given these advancements and strong partnerships, Sabre Corporation (NASDAQ:SABR) is well-positioned for growth in the evolving travel technology sector. SABR ranks among the best low-priced stocks in the technology sector.
8. PagSeguro Digital Ltd. (NYSE:PAGS)
Share Price as of December 24: $6.27
Number of Hedge Fund Holders: 25
PagSeguro Digital Ltd. (NYSE:PAGS), or PagBank, is a prominent financial services and digital payments company in Brazil. It operates as a leading digital bank, offering a wide range of financial services and payment solutions primarily for consumers, individual entrepreneurs, and small to medium-sized businesses. PagSeguro Digital Ltd. (NYSE:PAGS) offers digital accounts and complete solutions for online and in-person payments through mobile and POS devices.
In the third quarter of 2024, the company reported impressive financial results, with net revenues reaching BRL 4.8 billion, reflecting a 20% year-over-year growth. PagSeguro Digital Ltd. (NYSE:PAGS) achieved a record recurring net income of BRL 572 million, up 30% from the previous year, alongside a reported net income of BRL 531 million, which is an increase of 29%. This strong performance highlights PagSeguro Digital Ltd.’s (NYSE:PAGS) effective business model and its ability to capture market demand.
PagSeguro Digital Ltd. (NYSE:PAGS) is continuously innovating its product offerings to enhance customer experience. One of the new products that the company has been working on launching is the Multiple Card, which combines credit and debit functions in one product. These initiatives aim to simplify financial management for users and attract more customers. Given its solid financial performance, innovative solutions, and strong market position in Brazil’s growing fintech landscape, PagSeguro Digital Ltd. (NYSE:PAGS) represents an attractive investment opportunity in the technology sector. Its commitment to enhancing customer experiences through comprehensive financial services makes it one of the best low-priced technology stocks to buy.
7. Applied Digital Corporation (NASDAQ:APLD)
Share Price as of December 24: $8.56
Number of Hedge Fund Holders: 26
Applied Digital Corporation (NASDAQ:APLD) is a technology company that specializes in designing and operating data centers and cloud services tailored for high-performance computing (HPC) and artificial intelligence (AI). The company focuses on providing advanced infrastructure solutions that are flexible and reliable, essential for supporting the growing demands of the AI revolution. Applied Digital Corporation (NASDAQ:APLD) is one of the best low-priced stocks to invest in.
In September 2024, Applied Digital Corporation (NASDAQ:APLD) secured a significant $160 million in private placement financing from institutional and accredited investors, including NVIDIA. This strategic funding enhances the company’s financial strength and positions it as a leader in the accelerated computing space. With this capital, Applied Digital Corporation (NASDAQ:APLD) aims to scale its transformative data center and GPU cloud solutions.
For its fiscal first quarter of 2025, which ended on August 31, 2024, Applied Digital Corporation (NASDAQ:APLD) reported revenues of $60.7 million, a remarkable 67% increase from the previous year. The Cloud Services Business contributed $25.9 million to this revenue, supported by the addition of two new GPU clusters, bringing the total to six clusters at the end of the quarter. Each cluster contains 1,024 GPUs.
Additionally, on December 17, 2024, Applied Digital Corporation (NASDAQ:APLD) announced a major milestone in developing its HPC data center in Ellendale, North Dakota, with the successful energization of its main substation transformer. This step marks a critical step toward bringing the Ellendale HPC campus fully online and enabling it to support HPC and AI workloads.
Given its strong financial performance, strategic partnerships, and commitment to innovation in cloud services and data center technology, Applied Digital Corporation (NASDAQ:APLD) presents an attractive investment opportunity. The company’s focus on scalable and efficient infrastructure solutions positions it well to capitalize on the growing demand for AI and HPC services in various industries.
6. Matterport Inc. (NASDAQ:MTTR)
Share Price as of December 24: $4.79
Number of Hedge Fund Holders: 27
Matterport Inc. (NASDAQ:MTTR) is a leading company in 3D spatial mapping, specializing in creating digital twins of physical spaces. This technology helps with various aspects of design, construction, and management by turning buildings into immersive, data-rich models. The company’s platform allows users to visualize and interact with spaces, enhancing their value and accessibility throughout the building lifecycle. Matterport Inc. (NASDAQ:MTTR) is one of the best low-priced stocks in the technology sector.
In the third quarter of 2024, the company achieved record revenues of $43.8 million, reflecting an 8% increase year-over-year. The total square footage managed reached 47.3 billion, a significant 34% growth, while annual recurring revenue hit $101.5 million, marking an 11% rise. Matterport Inc. (NASDAQ:MTTR) also expanded its subscriber base to 1.1 million, up 25% from the previous year, demonstrating strong market demand for its services.
On October 1, 2024, Matterport Inc. (NASDAQ:MTTR) launched a suite of innovative tools powered by generative AI aimed at transforming how professionals design and market properties. Some of these features include an AI-powered defurnish tool that allows users to declutter spaces with a single click and an automated property description generator that creates tailored listings quickly. These tools streamline workflows for real estate agents and enhance property presentations. Additionally, Matterport Inc. (NASDAQ:MTTR) introduced the Merge tool, enabling users to combine multiple digital twins into a cohesive model. This feature is particularly beneficial for large projects, allowing teams to capture and manage extensive properties efficiently.
With its robust financial performance and commitment to innovation, Matterport Inc. (NASDAQ:MTTR) stands out as a promising technology stock. The company’s focus on enhancing user experience through AI-driven tools and its growing subscriber base position it well for future growth in the expanding market for digital solutions in real estate and construction.
5. N-able Inc. (NYSE:NABL)
Share Price as of December 24: $9.52
Number of Hedge Fund Holders: 27
N-able Inc. (NYSE:NABL) is a technology company that specializes in providing software solutions for IT services providers. The company helps managed service providers (MSPs) manage, monitor, and secure their customers’ systems, data, and networks. By offering a flexible technology platform and powerful integrations, N-able Inc. (NYSE:NABL) empowers MSPs to navigate the digital landscape effectively.
In the third quarter of 2024, the company reported a total revenue of $116.4 million, marking an 8.3% increase from the previous year. Subscription revenue reached $115 million, which is a 9.3% growth year-over-year. N-able Inc. (NYSE:NABL) is actively enhancing its offerings through strategic initiatives. In Q3 2024, the company launched global compliance initiatives aimed at strengthening cybersecurity resilience among its partners. This move aligns with recent regulatory changes, such as the Cybersecurity Maturity Model Certification (CMMC) 2.0, ensuring that N-able Inc.’s (NYSE:NABL) solutions meet evolving security standards.
Additionally, in the third quarter, the company expanded its Technology Alliance Program (TAP) and fostered new relationships with companies like Bocada, AlertOps, DeskDay, PIXM, and Hudu. This program allows MSPs to leverage a broader range of integrated solutions, enhancing their service offerings and flexibility.
In November 2024, N-able Inc. (NYSE:NABL) announced the acquisition of Adlumin, which will enhance its security operations capabilities. This acquisition positions the company to provide deeper insights and remediation across IT environments, further solidifying its cybersecurity portfolio. Given these strong financial results and strategic developments, N-able Inc. (NYSE:NABL) is one of the best low-priced stocks to buy in the technology sector.
4. Marqeta Inc. (NASDAQ:MQ)
Share Price as of December 24: $3.66
Number of Hedge Fund Holders: 33
Marqeta Inc. (NASDAQ:MQ) is a technology company that specializes in modern card issuing. It provides a platform that enables businesses to create customizable payment cards and embed financial services into their applications. With its open API infrastructure, Marqeta Inc. (NASDAQ:MQ) allows companies to quickly issue cards and manage payments, enhancing user experiences and facilitating new financial opportunities.
In the third quarter of 2024, Marqeta Inc. (NASDAQ:MQ) reported impressive financial results. The Total Processing Volume (TPV) reached $74 billion, reflecting a 30% increase compared to the previous year. The company generated $128 million in net revenue, an 18% rise, while gross profit climbed 24% to $90 million. These figures demonstrate Marqeta Inc.’s (NASDAQ:MQ) strong performance and growing market presence.
The company also introduced several new products that enhance its platform. One significant update is the Portfolio Migration service, which simplifies the transition for customers moving their card programs to the Marqeta platform without disrupting their existing services. In October, this feature successfully migrated millions of Klarna cards in Europe onto the platform, showcasing Marqeta Inc.’s (NASDAQ:MQ) capability to grow its business.
Another innovative offering is Marqeta Flex, which transforms how Buy Now Pay Later (BNPL) loans are integrated into payment apps. This solution aims to increase BNPL adoption by providing personalized options within popular payment applications. Additionally, in Q3 2024, Marqeta Inc. (NASDAQ:MQ) launched the UX Toolkit that allows clients to create tailored user interfaces for their card programs, improving customer engagement with fewer resources. Given these strong financial results and strategic product developments, Marqeta Inc. (NASDAQ:MQ) presents a compelling case as a technology stock to consider for investment.
3. CommScope Holding Company Inc. (NASDAQ:COMM)
Share Price as of December 24: $5.69
Number of Hedge Fund Holders: 38
CommScope Holding Company Inc. (NASDAQ:COMM) is a leading American provider of communications technology and network infrastructure solutions. The company specializes in designing, manufacturing, and supporting the hardware and software that enable effective digital communication.
In the third quarter of 2024, CommScope Holding Company Inc. (NASDAQ:COMM) reported net sales of $1.082 billion, a 3% increase from the previous year. The company’s core adjusted EBITDA reached $220 million, reflecting a remarkable 25% growth year-over-year. This performance was largely driven by the Connectivity and Cable Solutions (CCS) segment, which saw its adjusted EBITDA surge by 115% to $174 million. These results were supported by the strong demand from the hyperscale and cloud data center business as the industry’s need for bandwidth and data center capacity continues to rise. In the third quarter, the company approved an additional capacity expansion project to meet the increasing demand for data center solutions. These investments are anticipated to yield high returns with short payback periods.
Strategically, CommScope Holding Company Inc. (NASDAQ:COMM) is refining its focus. In the third quarter of 2024, the company announced an agreement to divest its Outdoor Wireless Networks (OWN) and Distributed Antenna Systems (DAS) business units. Such moves provide the company with greater flexibility to optimize its capital structure. By concentrating on its core businesses, which now include Connectivity and Cable Solutions (CCS), Access Network Solutions (ANS), and Networking Intelligent Cellular Solutions (NICS), CommScope Holding Company Inc. (NASDAQ:COMM) aims to enhance profitability.
Given these strong financial results and strategic initiatives, CommScope Holding Company Inc. (NASDAQ:COMM) presents a promising investment opportunity. The company’s focus on core operations and capacity expansion positions it well for future growth in an increasingly connected world.
2. Grab Holdings Limited (NASDAQ:GRAB)
Share Price as of December 24: $4.94
Number of Hedge Fund Holders: 39
Grab Holdings Limited (NASDAQ:GRAB) is a leading technology company based in Singapore, known for its super-app that combines mobility, food delivery, and digital financial services. Operating across eight Southeast Asian countries, the company serves over 700 cities, making it a vital platform for millions who rely on it for ordering food, hailing rides, and managing payments. Grab Holdings Limited (NASDAQ:GRAB) ranks among the best low-priced stocks in the technology sector.
In the third quarter of 2024, Grab Holdings Limited (NASDAQ:GRAB) reported impressive financial results. Revenue increased by 17% year-over-year, reaching $716 million. On-Demand Gross Merchandise Value (GMV) also grew by 15%, totaling $4.7 billion. This growth is attributed to the company’s strategic investments that have significantly boosted user engagement and transaction volumes. Notably, Grab Holdings Limited (NASDAQ:GRAB) achieved an all-time high Adjusted EBITDA of $90 million, marking its eleventh consecutive quarter of improvement.
For the third quarter, the number of Monthly Transacting Users on the platform rose to 42 million, reflecting a 16% year-on-year increase. This marked the sixth sequential quarter of growth. This growth in users is a strong indicator of Grab Holdings Limited’s (NASDAQ:GRAB) expanding market presence and potential for future revenue growth. The company’s ability to enhance user experience and optimize its services has contributed to this positive trend.
Additionally, Grab Holdings Limited (NASDAQ:GRAB) is actively managing its capital through a $500 million share repurchase program, having bought back 17.7 million shares worth approximately $58.2 million during the third quarter. This move not only signals confidence in the company’s future but also aims to enhance shareholder value. Given these solid financial results and strategic initiatives, Grab Holdings Limited (NASDAQ:GRAB) presents a compelling investment option. The company’s consistent revenue growth and expanding user base make it well-positioned for continued success in the Southeast Asian market.
1. Alight Inc. (NYSE:ALIT)
Share Price as of December 24: $6.78
Number of Hedge Fund Holders: 40
Alight Inc. (NYSE:ALIT) is a prominent player in the cloud-based human capital technology sector, specializing in employee benefits and well-being solutions. The company provides a comprehensive platform known as Alight Worklife and serves many of the world’s largest organizations. This platform integrates various aspects of employee benefits, including health, wealth, and well-being management. It helps organizations enhance their workforce’s financial security and overall health. Alight Inc. (NYSE:ALIT) is one of the best low-priced stocks to buy in the technology sector.
In February 2024, the company launched Alight LumenAI, a next-generation AI engine that significantly enhances the capabilities of the Alight Worklife platform. This innovative AI integration allows for personalized content delivery, automated decision support, and improved data analytics. By utilizing AI to streamline processes and increase engagement, Alight Inc. (NYSE:ALIT) is positioned to drive better outcomes for both employers and employees. For instance, the new AI personalization features can improve HR outcomes by over 10%, while automation capabilities can drastically reduce document processing times from 10 minutes to nearly instant.
Moreover, Alight Inc.’s (NYSE:ALIT) strategic decisions in 2024 have strengthened its market position. In July, the company sold its Payroll & Professional Services business to focus more on its core offerings. This strategic move is aimed at transforming Alight Inc. (NYSE:ALIT) into a more streamlined company focused on employee wellbeing and benefits, allowing for a simpler operational model. Additionally, the completion of a cloud migration transformation in August has also resulted in a more simplified and efficient Alight Worklife platform. This move is expected to yield $75 million in annual savings.
Alight Inc.’s (NYSE:ALIT) focus on innovation through AI and strategic restructuring for efficiency makes it a compelling technology stock to consider for investment. Its robust platform and commitment to improving position it well for future growth.
Overall, ALIT ranks first among the 10 best low-priced technology stocks to buy now. While we acknowledge the potential of technology companies, our conviction lies in the belief that some 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 ALIT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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