In this article, we will talk about the 10 best tech stocks to buy right now under $10.
Are Dips in Tech a Buying Opportunity?
The S&P 500 experienced its worst week since March 2023 in the week ending September 8, marked by a significant decline of 4.3%. This downturn was primarily triggered by a disappointing August jobs report, which revealed that US employers added only 142,000 jobs, falling short of the expected 161,000. This unemployment rate drop caused fears of a potential recession.
Investor sentiments are complicated by the Fed’s upcoming policy decisions, as the weak labor data prompts speculations about aggressive interest rate cuts, with some analysts anticipating a potential rate cut of 25 basis points and others suggesting an even more aggressive 50 basis point reduction.
However, the US market experienced a notable rebound on Monday, driven by renewed investor focus on inflation, which remains a critical factor influencing potential interest rate cuts by the Fed. The S&P 500 climbed just over 1%, recovering about a quarter of its 4% decline.
When markets are as volatile as now, investors become more cautious. Most analysts still maintain the opinion that volatile markets are opportunities for long-term investments and help in diversifying portfolios. In fact, we just talked about this earlier in our article about the 10 Worst Broadcasting Stocks to Buy According to Short Sellers. Mona Mahajan, a senior investment strategist at Edward Jones, thinks that while dips are a buying opportunity, it might be time to diversify away from tech stocks in particular. Here’s an excerpt from that:
“She advocates for long-term investors to take advantage of market downturns, as market volatility provides ideal entry points for investing in undervalued assets.
Mahajan also addressed the broader economic landscape, including the performance of large-cap technology stocks, which she noted may not be the haven they once were, as in 2023 or the first half of 2024. This suggests a need for investors to consider diversification beyond tech stocks. Still, she thinks that AI is a driving force in the market, suggesting that it will play a crucial role in various sectors over the next several years.”
At the same time, some analysts think tech stocks will remain popular for the full year 2024. Jason Draho, UBS Global Wealth Management head of Americas Asset Allocation, just emphasized that investors should view potential dips in tech stocks as good long-term buying opportunities, as 10% corrections are historically good entry points in tech.
While he’s optimistic about the technology sector, he acknowledged that the volatility will likely persist due to concerns about export controls and AI monetization. However, several factors make this sector attractive for the rest of the year. First, companies reported strong earnings results, although they were not as spectacular as desired. Second, the AI CapEx investment story has potential upside for next year. Third, from a portfolio perspective, these companies are high-quality with solid earnings and balance sheets.
He thinks that this market volatility is acyclical. The recent sell-off in the tech sector was not primarily due to economic concerns but rather to sector-specific issues. Despite this, tech giants will continue to benefit from the AI CapEx investment story. While there may be short-term challenges, the long-term outlook for these companies remains positive. Focusing on the broader tech sector, rather than the MAG 7, is a better strategy for investors seeking to capitalize on the AI boom.
Earlier this year with the UBS Global Investment Returns Yearbook this year, Draho projected the global technology sector to deliver 18% earnings growth in 2024, and AI revenues to grow at a 72% annualized rate over the next 5 years as adoption broadens across companies. This presents significant opportunities for investors.
Draho also cautioned against over-concentrating portfolios in the sector. He suggested diversifying exposure by investing in sector leaders as well as companies likely to benefit from tech disruption as a way to manage potential downside risks in tech stocks. He also suggested exploring other areas, such as quality stocks, including regional champions in Europe and Asia, alternative growth themes like the energy transition and healthcare disruption, or small- and mid-cap stocks.
Diversification in managing risks and growing long-term wealth can also come through other means. The UBS Global Investment Returns Yearbook reports that a diversified equity portfolio across 21 countries would have 40% less risk than a single-country investment. A balanced portfolio with a 60/40 split between stocks and bonds, has historically been less volatile than a portfolio composed solely of stocks.
While we take Jason Draho’s insights on a balanced and diversified investment approach, we are here with a list of the 10 best tech stocks to buy right now under $10 to leverage the dip in tech stocks.
Methodology
We used the Finviz stock screener to screen for technology companies that were trading at less than $10 per share. We sorted our screen by market cap and looked through the top 25 stocks that matched our criteria. We picked the 10 from those that were the most widely held by hedge funds, as of Q2 2024. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Tech Stocks To Buy Right Now Under $10
10. Clarivate Plc (NYSE:CLVT)
Number of Hedge Fund Holders: 27
Share Price as of September 10: $6.65
Clarivate Plc (NYSE:CLVT) is a leading global provider of transformative intelligence that provides data and analytics to help organizations innovate. It offers subscription services (like workflow solutions and expert services) for research, intellectual property, drug discovery, and market intelligence.
For instance, it helps pharmaceutical companies use real-world data to improve clinical trials by providing access to electronic health records and registry data to test drug effectiveness, speeding up clinical trials and improving patient care.
Currently, 27 hedge funds have long positions in Clarivate Plc (NYSE:CLVT). The highest stake is held by Leonard Green & Partners, with a value of $663,832,425.
In the second quarter of 2024, this company generated a revenue of $650.30 million, which was lower than Street estimates by $1.58 million, and was down 2.77% from the same period last year.
There was, however, growth in the academia and government segments, where the company saw subscription growth of over 3% in the Q1 and Q2 combined. This was due to improved renewal rates, reaching a record high of over 96%.
The declines are offset by investments in new products and AI features to stay competitive. The goal is to achieve soft growth of over 4% by introducing new research intelligence and software products.
The company launched new AI-powered tools — AI-native Web of Science Research Intelligence helps researchers innovate faster and institutions measure research impact. There’s also Collecto for library collection management and Specto for showcasing digital collections through AI. It’s developing new patent watch and R&D solutions that will be available in early 2025.
The company has successfully restructured and invested in product innovation, setting a clear path for growth. Despite leadership changes, specifically, Jonathan Gear stepping down as the CEO on August 9th to be replaced by Matti Shem Tov, previously from ProQuest, Clarivate Plc (NYSE:CLVT) remains in a strong financial position, indicating a promising future.
Baron Small Cap Fund made the following comment about Clarivate Plc (NYSE:CLVT) 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)
9. Full Truck Alliance Co Ltd – ADR (NYSE:YMM)
Number of Hedge Fund Holders: 28
Share Price as of September 10: $7.10
Full Truck Alliance Co Ltd – ADR (NYSE:YMM) is a Chinese digital freight platform that develops software to connect shippers with truckers to facilitate shipments across China. It’s like a ride-hailing app for trucks., making it easier for shippers to find transportation services.
The company is committed to becoming the one-stop shipping platform for 30 million small and medium-sized shippers. The shipper user base continues to expand, with average monthly active users reaching 2.65 million this quarter, up 32.8% year-over-year and 23.7% quarter-over-quarter. The 12-month shipper retention rate is also high at 80%.
The fulfilled orders in the first half of 2024 also grew by 25% year-over-year, significantly outpacing the single-digit growth in the overall freight market.
In Q2 2024, Full Truck Alliance Co Ltd – ADR (NYSE:YMM) exhibited a 36.48% year-over-year improvement in revenue, generating $387.41 million. 34% of the total revenue came from the transaction service revenue, which itself grew by 63% year-over-year.
In the first half of 2024, electric vehicle deliveries increased by 100% year-over-year, accounting for nearly 20% of total freight orders. 28 hedge funds are long in the company, with the highest stake at $207,836,436 by Farallon Capital.
Despite the challenging economic conditions, the company continued to drive the digital transformation of the logistics industry in the first half of 2024. Its platform helped businesses become more competitive by streamlining their logistics operations. Through a focus on cost reduction and efficiency, Full Truck Alliance Co Ltd – ADR (NYSE:YMM) is positioned for significant growth.
Here is what Baron Funds specifically said about Full Truck Alliance Co. Ltd. (NYSE:YMM) in its Q2 2022 investor letter:
“Full Truck Alliance Co. Ltd. (NYSE:YMM) is the largest digital freight platform in the world. Shares of the China-based company rallied after a cybersecurity review greenlighted the use of its Apps to add new user registrations. We remain investors. Digital platform penetration into China’s four trillion RMB full truck-load market is still just in the single digits. We see major upside based on the expected rollout of transaction commissions to truckers from the current 6% market penetration and less than 1% take rate, and we expect revenue to grow at 50% CAGR over the next five years.”
8. PagSeguro Digital Ltd. (NYSE:PAGS)
Number of Hedge Fund Holders: 32
Share Price as of September 10: $9.17
PagSeguro Digital Ltd. (NYSE:PAGS) is a Brazilian financial technology company that provides payment solutions. It offers services like credit card processing, online payments, and point-of-sale systems — it’s like a Brazilian version of PayPal.
The company reached 31.6 million clients by the end of June, adding more than 2 million clients in the preceding 12 months with 17.3 million active banking clients, a 5% increase. Cash-in per client grew 44%, while the overall credit portfolio grew 11%.
PagBank, the company’s digital bank that operates as a full-service financial institution, has excellent ratings and reviews. Its payment processing volume grew by 34% last year, outperforming the industry.
Small and medium-sized businesses increased their spending on PagSeguro Digital Ltd.’s (NYSE:PAGS) platform by 28% in the second quarter, because it sold them more products and services and became more efficient.
Overall, Q2 2024 saw a 5.92% year-over-year revenue improvement, as the company recorded a revenue of $830.58 million. The earnings per share were $0.31.
PagSeguro Digital Ltd. (NYSE:PAGS) has delivered strong financial results this quarter with record-high net income and revenue growth. The company’s strategic focus on high-value clients and efficient operations has driven profitability, and with a positive outlook and increased guidance, it is well-positioned for continued success. Additionally, it has a role as a key enabler in Brazil’s significantly underbanked population.
As of June 30, it is held by 32 hedge funds, of which the largest stake is at $127,704,436 by Point72 Asset Management.
7. Grab Holdings Ltd. (NASDAQ:GRAB)
Number of Hedge Fund Holders: 34
Share Price as of September 10: $3.35
Grab Holdings Ltd. (NASDAQ:GRAB) is a software company in Singapore that operates a super-app that provides food delivery, ride-hailing, and online payment services, extending to 700 cities in 8 Southeast Asian countries. In 2018, Grab acquired the Southeast Asian operations of Uber Technologies Inc (NYSE:UBER).
The company’s digital banks segment is growing rapidly in Southeast Asia. Deposits and loans have increased significantly. It’s now focusing on scaling the ecosystem, using AI, and investing in GenAI. For example, it rolled out AI-powered DISH descriptions (automated engaging and descriptive text for menu items) in 5 out of 8 markets at scale.
The company has 3 digital banks, all of which are fully operational. Deposits in GXS Bank in Singapore and that in Malaysia improved by over 50% quarter-on-quarter to $730 million. The total amount of loans given out by GrabFin and its digital banks reached an annualized rate of $2 billion in the second quarter.
Grab Holdings Ltd. (NASDAQ:GRAB) recorded a $664.00 million revenue in Q2 2024, exhibiting a 17.11% year-over-year rise. The loss per share came out exactly as Street estimates, with a value of $0.01.
Grab (NASDAQ:GRAB) has a near-monopoly position in Southeast Asia and its users are growing every quarter. In 2023, Fast Company, an American Business Magazine listed it as one of the most innovative companies in the Asia-Pacific region.
This stock is a good investment opportunity with strong growth and potential to gain market share in Southeast Asia. The company has $2.4 billion in cash to fund its expansion. It is held by 34 hedge funds as of June 30. The largest stakeholder is Tiger Global Management LLC, with a position of $329,879,447.
6. Payoneer Global Inc. (NASDAQ:PAYO)
Number of Hedge Fund Holders: 35
Share Price as of September 10: $7.14
Payoneer Global Inc. (NASDAQ:PAYO) is a financial technology company that operates a payment infrastructure platform, providing cross-border payment solutions to customers. With a one-stop, global, multi-currency account to serve all of their accounts receivable and accounts payable needs, customers can work with international clients and partners.
The company acknowledges that cross-border payments can be difficult, expensive, and slow, but because it operates businesses in international markets actively, it can mitigate challenges efficiently. The international development program growth accelerated to 10%, driven by higher take rate regions such as APAC, EMEA, and Latin America, as well as double-digit growth in China.
In Q2 2024, the company generated $239.52 million in record revenue, recording a 15.86% growth from Q2 last year. It also repurchased $47 million worth of shares during this quarter.
35 hedge funds are long in the company, with a total stake of 6,764,016 shares. The highest shareholder is Millennium Management, maintaining a position of $29,532,326.
Just recently, the company acquired Squad, a company that helps businesses hire and manage international employees. Payoneer Global Inc. (NASDAQ:PAYO) plans to sell Squad’s services to its existing customers, which will help it earn more money and better serve customers.
The company is a great choice for businesses that operate in multiple countries, as it continues proving itself through different expansion strategies and advancements. It is committed to innovation and creating value for everyone involved with the company.
5. Marqeta Inc. (NASDAQ:MQ)
Number of Hedge Fund Holders: 35
Share Price as of September 10: $4.92
Marqeta Inc. (NASDAQ:MQ) is a financial technology company that provides a modern card-issuing and payment processing solutions platform. It offers a flexible, modular platform that allows businesses to create and manage their own card programs, from debit and credit cards to prepaid cards. This company is the behind-the-scenes partner for companies that want to offer their customers financial services.
Recently, Varo Bank, with 5 million cards, chose Marqeta Inc. (NASDAQ:MQ) for card processing. Varo will migrate its customers to the platform in 2025 for a 5-year contract. It also signed Zoho, a global technology company, as a partner. They chose the company for its expertise in launching card solutions for expense management.
Yet, the revenue for the company decreased by 45.80%% year-over-year to $125.27 million mainly due to a change in how the company reports revenue from Cash App. 2024 will be the last quarter that the Cash App renewal affects the year-over-year comparison. Some of this decline was offset by the suite of risk solutions such as 3DS and risk control, which increased by 61% year over year.
One-third of consumers surveyed said they only use digital banks, with 63% of 18-to-34-year-olds saying they would consider using non-traditional financial services. This has helped modern banks gain market share. The platform has seen strong growth in financial services transactions, excluding Cash App. It has a proven track record of serving large businesses and this positions the company for growth.
In May, the company bought back 11 million shares at an average price of $5.39 for a total of $59 million. Right now, 35 hedge funds hold long positions in the company, the highest stake is valued at $52,766,854 by Renaissance Technologies.
4. Aurora Innovation Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 36
Share Price as of September 10: $3.85
Aurora Innovation Inc. (NASDAQ:AUR) is a self-driving vehicle technology company that has developed the Aurora Driver, a computer system that can be integrated into vehicles, for autonomous driving to make transportation safer, more accessible, and more efficient.
Aurora driver operates multiple types of vehicles from ride-hailing passenger vehicles to freight-hauling trucks. Aurora is working with a lot of industry leaders in the transportation ecosystem like Toyota, Uber, Uber Freight, FedEx, and Volvo Trucks.
Aurora Innovation Inc. (NASDAQ:AUR) has reached 95% readiness, demonstrating progress towards safer, more efficient, and reliable autonomous driving. The system can perceive 360 degrees of the operating environment.
In May, Aurora and Volvo unveiled the Volvo VNL Autonomous truck at the ACT Expo, to transport freight between Dallas and Houston using up to 20 fully autonomous trucks without human drivers. This was a big step towards its goal of commercializing self-driving trucks by the end of 2024.
The company recently partnered with Uber Freight to offer a new program for carriers of all sizes, tripled commercial volume, and secured a significant portion of the expected 2025 capacity.
Despite innovative expansions, the company faced $182 million in net loss for Q2 2024. The loss per share was $0.09.
The demand for self-driving technology is expected to grow from $52.09 billion in 2023 to $677.23 billion by 2031. Hence, the company is expected the leverage this demand and grow substantially to lead the industry in the upcoming years. According to Insider Monkey’s database, 27 hedge funds held stakes in Aurora Innovation Inc. (NASDAQ:AUR), with total holdings worth $160.8 million.
3. Alight Inc. (NYSE:ALIT)
Number of Hedge Fund Holders: 42
Share Price as of September 10: $7.20
Alight Inc. (NYSE:ALIT) is a platform company for HR management focused on employee benefits, payroll, and overall well-being. It is a leading cloud-based human capital technology and services provider for many of the world’s largest organizations and has been an industry leader with 4 decades of experience serving 70% of the Fortune 100 and half of the Fortune 500
The company won new clients like UPS, Wayfair, American Honda, and Adecco Group in Q2. Such expansions have resulted in 42 hedge funds holding long positions in the company as of June 30. The total shares held are 43,395,000, with the highest stake valued at $320,255,100 by Starboard Value LP.
The company reported a 2.36% decline in the year-over-year revenue, generating $787.00 million in total revenue, which was $2.9 million lower than analyst estimates. Still, the annual recurring revenue (~90% of the total revenue) bookings were up 9% in the first half versus the prior year, and have double-digit growth estimates for the second half of 2024.
The revenue outlook for 2024 has been updated due to lower demand for non-recurring projects. However, the core business will continue to grow, boosted by long-term contracts with many large companies. Since the company is trying to improve sales process and client experience to achieve 4-6% annual revenue growth, it’s safe to say that Alight Inc. (NYSE:ALIT) is well-positioned to lead the industry soon.
Greenlight Capital stated the following regarding Alight, Inc. (NYSE:ALIT) in its Q2 2024 investor letter:
“However, it wasn’t all roses. We had three material losers in the long portfolio (and an undisclosed loser in the short portfolio), and deservedly so. Alight, Inc. (NYSE:ALIT) fell from $9.85 to $7.38. While the core business is quite steady with a high degree of recurring revenues, it underperformed slightly in the first quarter. Additionally, the smaller and lumpier parts of the business disappointed for the second quarter in a row. Management’s deteriorating credibility has compounded the issue and the situation has attracted an activist investor. We now expect the company to either change management or sell itself.”
2. Zoominfo Technologies Inc. (NASDAQ:ZI)
Number of Hedge Fund Holders: 43
Share Price as of September 10: $9.64
Zoominfo Technologies Inc. (NASDAQ:ZI) is a software and data analytics company that provides sales and marketing intelligence for companies and business individuals. The main product is a commercial search engine, specialized in contact and business information, but generally, the platform helps businesses identify potential customers, gather information about them, and track their interactions.
The company recently signed deals with PwC, Deutsche Bank, MorningStar, and Manulife, with the largest-ever deal being a major US employer (worth $1.4 million over 3 years).
In June, Google chose Zoominfo Technologies Inc.’s (NASDAQ:ZI) as a partner to make GenAI more reliable, ZoomInfo Copilot, an AI-powered offering that combines company data with customer data to provide sales teams with better insights about their buyers. There is over $18 million in Copilot ACV and more than 1,000 customers.
Its data services are growing by 23%, and customer retention is strong at 117%. Companies investing in AI need accurate data, and this company becoming a key provider. There was a recent deal in EMEA to support a global network for financial institutions, using company data to build an AI solution to detect fraud.
Overall, the second quarter saw a 5.57% year-over-year decline in revenue. The earnings per share were still $0.17. Currently, 43 hedge funds are long in the company, with the highest stake amounting to $225,698,500 by HMI Capital.
It has achieved significant growth and financial success, despite facing challenges. The company’s focus on operational improvements and customer retention has led to positive results. While there have been short-term setbacks, its long-term prospects remain strong.
Baron Global Advantage Fund stated the following regarding ZoomInfo Technologies Inc. (NASDAQ:ZI) in its fourth quarter 2023 investor letter:
“We were too slow to sell when the probability of a likely thesis change dictated action over inaction. Each investment is like a puzzle. Different pieces are missing in different puzzles. Our process is deliberately slow and is built on collecting and analyzing as much information as possible and building conviction over time. In a highly stressful environment with a wide range of outcomes, a recognized lack of balance with emotions running high, postponing “bad decisions” is often the correct course of action except, when there is evidence of a potential or likely thesis change on the negative side in a bear market. We were often too slow and too timid in running for the exit. For example, when a company’s revenues prove to be less sticky during times of stress despite high average retention rates. ZoomInfo Technologies Inc. (NASDAQ:ZI), the business-to-business (B2B) sales data and software provider readily comes to mind, where we made a mistake selling the stock too slowly, as we did not fully appreciate the extent to which the company oversold unused licenses to its customers, which exacerbated the slowing demand environment, creating a whiplash effect as the license inventory was used up later on, causing revenue growth to decelerate materially.”
1. Wipro Ltd. (NYSE:WIT)
Number of Hedge Fund Holders: 46
Share Price as of September 10: $6.21
Wipro Ltd. (NYSE:WIT) is one of the six leading Indian Big Tech companies and provides information technology, consulting and business process services. Services include application development, digital transformation, cloud computing, cybersecurity, and business process outsourcing, helping businesses improve their operations, reduce costs, and enhance customer experience.
The overall revenue for FQ1 2025 was $2.63 billion, reflecting a year-over-year decline of 5.76%. Americas 2 had a sequential drop of 0.7%, and Europe and APMEA declined 1.4% and 4.2% respectively.
However, Americas 1 delivered a sequential growth of 0.4% in quarter one, which is important to recognize because it had a good year in the fiscal full-year 2024 with the health and technology sectors leading the way.
In the first quarter of 2025, the company secured 10 deals worth over $1 billion. One deal was with a US communication services provider for a 5-year contract to provide managed services. Another deal was with a US automotive manufacturer to streamline their global infrastructure services. It also launched iAspire, an AI-powered career development platform, to help its employees grow and progress (225,000+ employees are trained, and 30,000 have received advanced AI training).
The company is focusing on strengthening relationships with major clients and partners. Its collaborating with technology providers to develop new solutions. Even in a challenging market, the revenue from the top 10 accounts grew by 1.3% sequentially and 3.8% year-over-year for Wipro Ltd. (NYSE:WIT). This shows how well-positioned the company is for growth.
46 hedge funds have a total of 5,622,699 shares in the company. The largest stakeholder is Millennium Management, with a position of $34,298,464.
While we acknowledge the growth potential of Wipro Ltd. (NYSE:WIT), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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