10 Best Tech Stocks To Buy Right Now Under $10

In this article, we will be taking a look at the 10 best tech stocks to buy right now under $10.

Tech: The Market’s Saving Grace

The technology sector has been the stock market’s saving grace so far in 2023, with semiconductor companies and artificial intelligence (AI) companies taking the lead among all others. The situation surrounding these companies in the market today has led many investors to rejoice while others are more cautious, wondering whether the popularity of AI, in particular, is just a hype cycle or a transformational development that is here to stay. Some financial professionals are dubbing AI popularity today as nothing more than a bubble that will inevitably burst at some point, while others are more optimistic about the prospects of tech and AI companies in the years to come.

On July 25, CNBC’s TechCheck delved into the question of whether the AI hype is justified or not. According to CNBC, “pristine balance sheets, wide moats, generative AI” and a few other factors such as “ever higher valuations” and “greater concentration in a handful of names” among the mega-cap tech companies in the market today have managed to spell out a convincing bullish case for the technology sector in 2023. Investors and financial professionals have seen these factors come into place this year to such an extent that no one can really deny the widespread influence of technology companies on the market and the economy as a whole. The industry has seen immense outperformance during the first half of 2023, with Bernstein analysts noting that tech is currently trading at a “54% premium to the market.” This figure is the highest the industry has seen in reportedly 45 years, apart from the dot-com bubble.

For some, these developments may seem to be alarming, especially if they believe that companies operating within this space will not be able to live up to the hype they have created around themselves so far. Additionally, CNBC notes that in order to justify the current hype around generative AI and its applications, AI companies will have to highlight precise revenue figures drawn from AI-related operations to make investors and analysts feel more at ease. NVIDIA Corporation (NASDAQ:NVDA) is currently one of the only companies out there that has actually managed to pinpoint AI-driven revenues in 2023. This reality highlights both a hope for the future of other companies embarking on AI projects and a fear that these companies may not be able to match the performance of this major chipmaker. Companies like Microsoft Corporation (NASDAQ:MSFT), which has been doling out a $30 per month AI subscription, will really have to step on it to generate adequate returns from such operations if they wish to keep their investors satisfied.

Everyone Wants A Piece Of AI

Additionally, some professionals are worried that, for the most part, only large-cap tech players, such as Apple Inc. (NASDAQ:AAPL) and others mentioned above, have anything to gain from the tech rally we’ve been seeing so far. But such concerns are likely to be unfounded as companies across the industry are working on innovative products involving new technologies and AI to stay in the race with their competitors. The leadership displayed by the tech sector is continuing to prove wary investors wrong this year, and the primary reason behind this is the involvement of AI. Considering this trend, even companies like Apple Inc. (NASDAQ:AAPL), which managed to stay out of AI-related financial news for most of this year, have begun to acknowledge the importance of having a firm footing in this space considering the rapid spread of this technology after the launch of ChatGPT. For example, on July 19, news began to spread that Apple Inc. has its own ChatGPT equivalent platform in the works. According to Bloomberg, some are already beginning to call this product “Apple GPT,” considering it to be a generative AI tool that can rival ChatGPT upon its release, which is expected to be sometime next year.

This move highlights the fact that all tech companies today are beginning to realize that the AI bandwagon is one they must jump on, and the same holds true for many smaller tech companies as well. Considering the widespread influence of this industry in the market today, we have compiled a list of some tech stocks to buy right now under $10. These will offer investors some options if they are looking to enter the tech industry affordably since these are some of the best cheap stocks to buy today, according to hedge fund sentiments. They may even be considered to be stocks under $10 with high potential, making them good investment prospects today.

Our Methodology

We used a stock screener to find technology stocks trading below $10 on July 25 and picked some of the most popular stocks among hedge funds this year using Insider Monkey’s hedge fund data for the first quarter. The stocks are ranked based on the number of hedge funds holding stakes in them, from the lowest to the highest number.

Best Tech Stocks To Buy Right Now Under $10

10. CS Disco Inc. (NYSE:LAW)

Number of Hedge Fund Holders: 15

Share Price as of July 25: $9.04

CS Disco Inc. (NYSE:LAW) is an application software company based in Austin, Texas. The company provides cloud-native and artificial intelligence-powered legal solutions for e-discovery, legal document review, and case management. It offers its products and services to enterprises, law firms, legal services providers, and governments.

As of May 11, Parker Lane, an analyst at Stifel, maintains a Buy rating on shares of CS Disco Inc..

CS Disco Inc. was spotted in the portfolios of 15 hedge funds in the first quarter of 2023, with a total stake value of $24.9 million.

At the end of the first quarter, Solel Partners was the largest shareholder in CS Disco Inc., holding 2.5 million shares in the company.

Wasatch Global Investors said the following about CS Disco Inc. in its fourth-quarter 2022 investor letter:

“CS Disco, Inc. (NYSE:LAW) has faced significant challenges recently. This legal-technology company provides a cloud-based platform of artificial-intelligence solutions for e-discovery, legal-document review and case management. Because CS Disco has a limited history as a publicly traded company and is aggressively spending cash to fund its growth, skeptical investors drove the stock price down. Moreover, the legal-document review segment of the company’s business depends on incremental usage that’s extremely volatile because the segment is very early in the adoption cycle. Based on our visit and our discussions with customers, we’re cautiously optimistic that adoption will ramp up, volatility will decline and revenue per client will grow. In addition, CS Disco’s large cash position could help the company to realize the market opportunity for its cloud-based platform, which we believe has the potential to make the legal industry much more efficient.”

9. GoPro, Inc. (NASDAQ:GPRO)

Number of Hedge Fund Holders: 19

Share Price as of July 25: $4.08

Alicia Reese, an analyst at Wedbush, maintains an Outperform rating on shares of GoPro, Inc. (NASDAQ:GPRO) as of May 10. The analyst also placed a $6 price target on the stock.

GoPro, Inc. is a consumer electronics company that develops and sells cameras, mountable and wearable accessories, and subscription services and software internationally. The company is based in San Mateo, California.

There were 19 hedge funds long GoPro, Inc. in the first quarter. Their total stake value in the company was $65.5 million.

Like NVIDIA Corporation, Apple Inc., and Microsoft Corporation, GoPro, Inc. is a tech stock that is highly popular among elite hedge funds today.

8. ON24, Inc. (NYSE:ONTF)

Number of Hedge Fund Holders: 20

Share Price as of July 25: $8.44

Lynrock Lake was the largest shareholder in ON24, Inc. (NYSE:ONTF) at the end of the first quarter, holding 7.3 million shares in the company.

ON24, Inc. is an information technology company based in San Francisco, California. The company offers a cloud-based digital engagement platform that enables businesses to convert customer engagement into revenue by utilizing webinars, virtual events, and multimedia content experiences across the globe.

Brent Bracelin, an analyst at Piper Sandler, reiterated a Neutral rating on shares of ON24, Inc. on May 10. The analyst also maintained a price target of $9 on the shares.

ON24, Inc. was seen in the 13F holdings of 20 hedge funds in the first quarter, with a  total stake value of $160 million.

7. Zeta Global Holdings Corp (NYSE:ZETA)

Number of Hedge Fund Holders: 21

Share Price as of July 25: $8.86

Our hedge fund data for the first quarter shows 21 hedge funds holding stakes in Zeta Global Holdings Corp. (NYSE:ZETA). Their total stake value in the company was $250.5 million.

A Buy rating was reiterated on shares of Zeta Global Holdings Corp. by Ryan MacDonald, an analyst at Needham, on May 18. The analyst also maintained a price target of $13 on the shares.

Zeta Global Holdings Corp. is another application software company on our list based in New York. The company operates an omnichannel data-driven cloud platform. The platform aims to provide enterprises with consumer intelligence and marketing automation software both in the US and internationally.

Like NVIDIA Corporation, Apple Inc., and Microsoft Corporation, Zeta Global Holdings Corp. is a tech stock many hedge fund investors are piling into this year.

6. MagnaChip Semiconductor Corporation (NYSE:MX)

Number of Hedge Fund Holders: 23

Share Price as of July 25: $8.74

MagnaChip Semiconductor Corporation (NYSE:MX) is a semiconductor company operating in the information technology sector. The company is based in Cheongju-Si, South Korea. It designs, manufactures, and supplies analog and mixed-signal semiconductor platform solutions. Its products are used in communications, the Internet of Things, consumer, industrial, and automotive applications.

We saw 23 hedge funds holding stakes in MagnaChip Semiconductor Corporation in the first quarter of 2023, with a total stake value of $99.2 million.

As of June 23, Rajvindra Gill, an analyst at Needham, holds a Buy rating on shares of MagnaChip Semiconductor Corporation. The analyst also maintains a price target of $13 on the shares.

Toronado Partners was the most prominent shareholder in MagnaChip Semiconductor Corporation at the end of the first quarter, holding 2.7 million shares in the company.

5. Yext, Inc. (NYSE:YEXT)

Number of Hedge Fund Holders: 28

Share Price as of July 25: $9.42

Yext, Inc. (NYSE:YEXT) is an information technology company operating a cloud-based platform to provide answers to consumer questions about their businesses. The company is based in New York.

Rohit Kulkarni at Roth MKM upgraded Yext, Inc. shares from Neutral to Buy on June 7, alongside raising his price target on the stock from $8.50 to $12.50.

There were 28 hedge funds long Yext, Inc. in the first quarter, with a total stake value of $233 million.

4. indie Semiconductor, Inc. (NASDAQ:INDI)

Number of Hedge Fund Holders: 30

Share Price as of July 25: $9.20

indie Semiconductor, Inc. (NASDAQ:INDI) is another semiconductor company on our list. It provides automotive semiconductors and software solutions.

indie Semiconductor, Inc. had 30 hedge funds long its stock in the first quarter, with a total stake value of $175.2 million.

A Buy rating was reiterated on indie Semiconductor, Inc. by Cody Acree at Benchmark on June 30, alongside a $17 price target.

Here’s what Baron Funds said about indie Semiconductor, Inc. in its first-quarter 2023 investor letter:

“indie Semiconductor, Inc. (NASDAQ:INDI) is a designer, developer, and marketer of automotive semiconductors for advanced driver assistance systems (ADAS) as well as connected car, user experience, and electrification applications. Shares rose during the quarter after the company announced the acquisition of GEO Semiconductor and met or exceeded revenue and gross margin guidance for the seventh straight quarter since coming public. After raising capital in late 2022 to fund acquisition activity – we increased our position size when the stock traded down on this convertible bond deal – early this year indie announced its buyout of GEO Semiconductor for up to $270 million (including potential earnouts), to round out its ADAS sensor portfolio with a leader in camera processing technology. We find GEO Semiconductor to be a synergistic acquisition that accelerates indie’s growth and margin trajectory. The automotive semiconductor vertical remains attractive. We believe indie will continue to deliver on its targeted model of profitability in the second half of 2023, achieving 60% gross margins and 30% operating margins by 2025. We also project indie continues to rapidly increase revenue, as it fulfills its $4.2 billion, and growing, strategic backlog.”

3. Eventbrite, Inc. (NYSE:EB)

Number of Hedge Fund Holders: 30

Share Price as of July 25: $9.86

Benjamin Swinburne at Morgan Stanley holds an Equal Weight rating on Eventbrite, Inc. (NYSE:EB) as of July 21, alongside a price target of $10.

At the end of the first quarter, 30 hedge funds were long Eventbrite, Inc.. Their total stake value was $210.9 million.

Eventbrite, Inc. is an interactive media and services company operating a self-service ticketing and experience tech platform serving event creators. It is based in San Francisco, California.

2. Alight Inc. (NYSE:ALIT)

Number of Hedge Fund Holders: 41

Share Price as of July 25: $9.83

A total of 41 hedge funds held stakes in Alight Inc. (NYSE:ALIT) in the first quarter, with a total stake value of $946.7 million.

Alight Inc. is a provider of cloud-based integrated digital human capital and business solutions. It is based in Lincolnshire, Illinois.

Peter Christiansen at Citigroup initiated coverage on Alight Inc. on June 13 with a Buy rating and a $12 price target.

This is what Polen Capital said about Alight Inc. in its first-quarter 2023 investor letter:

“New additions to the portfolio included Alight, Inc. (NYSE:ALIT) and DocGo. Alight is a leading cloud-based provider of employee engagement tools and solutions for workplace benefits, payroll, administration, and wealth services. Alight was founded 25 years ago, and, in keeping with the flywheel, has a long history of consistently growing recurring revenue. Over the past several years, Alight has deployed capital towards several value-add acquisitions and towards developing a technology platform for what they call “business process as a service” or “BPaaS”. This has only furthered Alight’s unique positioning and opened up significant growth opportunities.To give a sense for their scale, they serve 15% of the US workforce and their solutions can be found in 50% of Fortune 500 companies. Alight’s human capital BPaaS solutions combine Software as a Service (“SaaS”) capabilities, artificial intelligence, automation, and data analytics to deliver superior outcomes for employees and employers across a comprehensive portfolio of services. We expect Alight to drive consistent growth on the back of upsell/cross-sell opportunities with existing clients, as well as from new customer wins, international expansion and M&A.”

1. Clarivate Plc (NYSE:CLVT)

Number of Hedge Fund Holders: 45

Share Price as of July 25: $9.55

In total, 45 hedge funds were long Clarivate Plc (NYSE:CLVT) in the first quarter. Their total stake value was $2.6 billion.

Oppenheimer analyst Owen Lau maintains an Outperform rating on Clarivate Plc shares as of July 5, alongside a $12 price target.

Clarivate Plc is an information, analytics, and workflow company based in London, United Kingdom. It offers subscription and tech-based solutions, among more.

Baron Funds made the following comment about Clarivate Plc in its first-quarter 2023 investor letter:

“We added to our position in Clarivate Plc (NYSE:CLVT), a leading global information services provider that serves customers across academia and government, life sciences & health care, and intellectual property. Clarivate goes to market with a collection of well-known brands, including Web of Science, ProQuest One, Alma, Cortellis, Derwent, and CompuMark.

Clarivate has an attractive business model. The company’s foundation is its highly valuable proprietary data assets (#1 or #2 player in most markets) that are combined with analytical tools and insights to help users apply the underlying data to everyday business problems. As an important part of the end users’ daily workflow, Clarivate’s indispensable, mission-critical solutions create a sticky and predictable business model with high levels of recurring revenue (about 80% recurring revenue and over 90% renewal rates). Clarivate has strong operating leverage (“build it once, sell it many times”) and should be able to sustain adjusted EBITDA margins in the low to mid-40% range…” (Click here to read the full text)

See also 10 Tech Stocks Benefiting From The AI Boom and Top 20 Most Profitable Tech Companies in the World.

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This article is originally published at Insider Monkey.