It seems that technology stocks have had a tough start to 2025. On March 4, 2025, CNBC reported that since President Donald Trump took office in January, the S&P 500 technology sector has dropped 7.5%. Tech stocks have slumped largely due to new tariffs that have set off a trade war and added fuel to the risk-off sentiment on Wall Street.
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Economists had cautioned that tariffs could lead to a rise in inflation and create global economic disruptions. Many leading tech companies assemble and manufacture products outside the US and as a result of the tariffs these companies could see manufacturing costs rise.
Semiconductor stocks have also been hit hard. On March 3, Trump cleared the way for new 25% tariffs on imports from Mexico and Canada and smashed hopes of a potential last-minute deal. According to the US President, there was “no room left” for further negotiations after weeks of talks. Trump also put an additional 10% tariff on Chinese imports.
In response, Canada said it would impose retaliatory tariffs. Mexico said it will be looking to announce a plan on Sunday. China retaliated with tariffs of up to 15% on some US goods. These developments have added to the uncertainty surrounding the tech sector.
The tech sector has experienced a decline due to economic uncertainty and trade tensions and this might present buying opportunities for some investors. Despite current challenges, some tech stocks show strong potential for growth.
With this background in mind, let’s take a look at 10 cheap tech stocks to buy according to hedge funds.
An executive in a business suit discussing the possibilities of smart technology.
Methodology
To compile our list of the 10 cheap tech stocks to buy according to hedge funds, we used the Finviz stock screener and Yahoo Finance. To find cheap tech stocks, we looked for stocks with a forward P/E ratio of less than 20. We sorted our results based on market capitalization and picked the top 25 technology companies trading at under 20 times their forward earnings as of March 3, 2025. Next, we focused on the top 10 cheap tech stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 10 cheap tech stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Cheap Technology Stocks to Buy According to Hedge Funds
10. Seagate Technology Holdings plc (NASDAQ:STX)
Forward P/E: 14.10
Number of Hedge Fund Holders: 52
Seagate Technology Holdings plc (NASDAQ:STX) is a data storage and technology company that designs, manufactures, and sells computer hardware. As a leading innovator of mass-capacity data storage, the company offers a comprehensive portfolio of storage devices, systems, and services from edge to cloud. Seagate Technology Holdings plc (NASDAQ:STX) ranks among the top cheap tech stocks to buy according to hedge funds.
The company is focused on enhancing its capabilities and offerings in the data storage industry. In February 2025, Seagate Technology Holdings plc (NASDAQ:STX) announced its agreement to acquire Intevac, a leading provider of thin-film process technology and manufacturing platforms for high-volume manufacturing focused primarily on the hard disk drive (HDD) industry. This transaction is expected to help Seagate Technology Holdings plc (NASDAQ:STX) improve the performance and efficiency of its storage solutions while also increasing the company’s competitive edge through new manufacturing capabilities and technologies that can help differentiate its products in a highly competitive market. The transaction is scheduled to close in late March or early April 2025 and Seagate Technology Holdings plc (NASDAQ:STX) expects this transaction to be accretive to the company’s non-GAAP earnings per share over the long-term with minimal impact on non-GAAP EPS over the short-term.
9. Fidelity National Information Services, Inc. (NYSE:FIS)
Forward P/E: 12.39
Number of Hedge Fund Holders: 53
Fidelity National Information Services, Inc. (NYSE:FIS) is an American multinational corporation that provides technology solutions to financial institutions, businesses, and developers. The company offers a wide range of products and services, including core banking processing, payments, and wealth management. Fidelity National Information Services, Inc. (NYSE:FIS) is a global leader in core banking systems and digital banking solutions.
Longleaf Partners Fund pointed out in its Q4 2024 investor letter that Fidelity National Information Services, Inc. (NYSE:FIS) was a top performer for the year 2024. The investor letter highlighted the resilience of the fintech sector while noting that the company’s core banking software business showed solid growth. Longleaf Partners Fund believes that under CEO Stephanie Ferris, Fidelity National Information Services, Inc. (NYSE:FIS) has made significant progress. The company sold a non-core business at a strong valuation and used the proceeds to repurchase 10% of its outstanding shares. These actions resulted in strong double-digit growth in value per share in 2024. Longleaf Partners Fund further noted that despite its stability and offensive strategy, Fidelity National Information Services, Inc. (NYSE:FIS) is still trading at a reasonable multiple of its free cash flow, which is a rare quality in today’s market.
8. Dell Technologies Inc. (NYSE:DELL)
Forward P/E: 11.06
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) is an American multinational technology company that offers computing, storage, networking, cybersecurity, and IT solutions. The company designs, develops, manufactures, and sells a wide range of products including personal computers (PCs), servers, data storage devices, network switches, software, and peripherals, with an emphasis on providing comprehensive IT infrastructure solutions for businesses and consumers worldwide. According to hedge funds, Dell Technologies Inc. (NYSE:DELL) is one of the best cheap tech stocks to buy.
On February 28, Goldman Sachs analyst Mike Ng recently reaffirmed a “Buy” rating on Dell Technologies Inc. (NYSE:DELL) with a price target of $145. The analyst highlighted the company’s strong financial performance and promising future prospects. Dell Technologies Inc. (NYSE:DELL) reported earnings per share for Q4 of fiscal year 2025 that exceeded expectations, driven by the Infrastructure Solutions Group (ISG) segment that saw robust margins and anticipated growth in AI server orders and shipments. The company’s focus on high-margin products, an expected PC refresh cycle in fiscal 2026, and a substantial backlog of AI server orders indicate potential for continued growth and support the “Buy” rating.
7. Hewlett Packard Enterprise Company (NYSE:HPE)
Forward P/E: 9.41
Number of Hedge Fund Holders: 66
Hewlett Packard Enterprise Company (NYSE:HPE) is an American multinational information technology (IT) company that provides a range of solutions including servers, storage, networking equipment, software, and consulting services. The company is focused on enterprise-level needs with its offerings spanning cloud services, edge computing technologies, hybrid cloud, software, and networking. Hewlett Packard Enterprise Company (NYSE:HPE) is one of the best cheap tech stocks to buy.
The company is looking to strengthen its position in AI-driven networking by acquiring Juniper Networks, a leader in AI-native networks. This transaction, which is on track to close in the first half of 2025, is expected to double Hewlett Packard Enterprise Company’s (NYSE:HPE) networking business. The company is strategically focused on capitalizing on the growing demand for secure, AI-powered, and hybrid cloud solutions by creating a comprehensive portfolio that presents customers and partners with a compelling new choice to drive business value. This acquisition aligns with Hewlett Packard Enterprise Company’s (NYSE:HPE) goal of shifting toward higher-growth solutions and strengthening its high-margin networking business.
6. Global Payments Inc. (NYSE:GPN)
Forward P/E: 8.44
Number of Hedge Fund Holders: 71
Global Payments Inc. (NYSE:GPN) is an American multinational financial technology company that provides payment technology and software solutions to merchants, issuers, and consumers. The company offers innovative payment acceptance and issuer solutions, software solutions for various business models and customer needs, software to automate accounts payables and receivables, and technologies to help businesses manage and pay employees. Global Payments Inc. (NYSE:GPN) operates a diverse business model with worldwide reach across North America, Europe, Asia Pacific, and Latin America. GPN ranks among the top cheap tech stocks to buy.
On February 13, Raymond James analyst John Davis lowered the price target on Global Payments Inc. (NYSE:GPN) from $131 to $122 while keeping an “Outperform” rating. This decision followed mixed Q4 2024 results where adjusted EPS met expectations while revenue came in slightly below estimates. The analyst estimates that Merchant revenue grew 6% organically (FX adjusted), which is consistent with Q3 but slightly underwhelming given the network acceleration. However, Davis highlighted that high-single-digit growth in key sub-segments like POS & Software and Integrated & Embedded was encouraging. Global Payments Inc.’s (NYSE:GPN) initial 2025 outlook projects 5%-6% revenue growth and 10%-11% adjusted EPS growth. Davis believes if management can deliver on the outlook, the stock could rise higher. The analyst also highlighted that Global Payments Inc. (NYSE:GPN) trades at a significant discount to the S&P 500.
5. QUALCOMM Incorporated (NASDAQ:QCOM)
Forward P/E: 13.55
Number of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) is an American multinational technology corporation that ranks among the best cheap tech stocks to buy. The company designs and develops processors, modems, radio frequency (RF) systems, 5G, 4G and legacy connectivity solutions, and optimized software. QUALCOMM Incorporated (NASDAQ:QCOM) is a global leader in wireless technology and it is known for pioneering advancements in 3G, 4G, and 5G technologies. The company’s wireless connectivity solutions are used in smartphones, laptops, IoT devices, and vehicles. It has 170 offices in more than 30 countries around the world.
The company is making strategic moves to maintain leadership in wireless technologies by integrating advanced AI capabilities into its platforms to enhance user experiences and drive transformation across industries. On March 3, QUALCOMM Incorporated (NASDAQ:QCOM) unveiled advancements in 5G and AI at MWC Barcelona 2025. The company announced the Qualcomm X85 5G Modem-RF, its eighth-generation 5G modem-to-antenna solution and fourth-generation AI-powered 5G connectivity platform, which sets new standards for connectivity in Android smartphones. This advanced platform can achieve peak download speeds of up to 12.5 Gbps and supports both sub-6 GHz and mmWave bands for seamless streaming, gaming, and downloads. With an enhanced Qualcomm 5G AI processor featuring a hardware tensor accelerator, the X85 improves speed, efficiency, coverage, and power consumption through AI-driven optimizations. QUALCOMM Incorporated (NASDAQ:QCOM) also announced the world’s first 5G Advanced fixed wireless access platform. The company further highlighted its focus on AI by demonstrating agentic and multimodal AI experiences across Snapdragon-powered devices such as smartphones, PCs, and smart glasses.
4. Applied Materials, Inc. (NASDAQ:AMAT)
Forward P/E: 17.01
Number of Hedge Fund Holders: 80
Applied Materials, Inc. (NASDAQ:AMAT) is an American corporation that specializes in materials engineering solutions for the semiconductor, flat panel display and solar photovoltaic (PV) industries. The company supplies equipment, services, and software for the manufacture of semiconductor chips, advanced displays, and solar products. Applied Materials, Inc. (NASDAQ:AMAT) ranks among the top cheap tech stocks to buy.
The company is focused on enhancing its manufacturing capabilities and advancing materials engineering to drive innovation in semiconductor technologies. Applied Materials, Inc. (NASDAQ:AMAT) is making significant multi-billion-dollar investments to expand its global manufacturing capacity in the US and Singapore by 2030. Through these investments, the company aims to enhance collaboration with customers and meet the growing global demand for semiconductors.
In February 2025, Applied Materials, Inc. (NASDAQ:AMAT) announced the SEMVision H20 system, a new defect review tool to help leading semiconductor manufacturers continue pushing the limits of chip scaling. This system combines the industry’s most sensitive electron beam (eBeam) technology with advanced AI image recognition to detect nanoscale defects in complex 3D chip structures more efficiently. By enabling faster and more accurate defect analysis, the new defect review and inspection tool helps improve production yield and factory cycle times.
3. Block, Inc. (NYSE:XYZ)
Forward P/E: 14.27
Number of Hedge Fund Holders: 81
Block, Inc. (NYSE:XYZ) is an American financial technology company that provides a variety of financial services to consumers and merchants. The company’s main product, Square, makes commerce and financial services accessible to sellers while Cash App allows users to send, receive, or hold money, invest in stocks and Bitcoin, apply for personal loans, and even file taxes. Block, Inc. (NYSE:XYZ) offers buy now, pay later (BNPL) services through Afterpay. Additionally, the company offers music streaming services through Tidal and self-custody Bitcoin wallet services through Bitkey. According to hedge funds, XYZ is one of the best cheap tech stocks to buy.
The company operates a diverse business model that caters to a range of customers to generate multiple revenue streams. Block, Inc. (NYSE:XYZ) is strategically focused on innovation and product development to grow its business. The company focused on enhancing Square’s onboarding process, commerce tools, and app infrastructure in 2024. Block, Inc. (NYSE:XYZ) launched a new unified app for sellers to simplify onboarding and make Square’s features easily accessible. With an aim to expand into new markets while improving customer experiences, the company also introduced new products like scan-to-pay functionality and house accounts to support sellers.
Block, Inc. (NYSE:XYZ) also strengthened its financial services ecosystem through Cash App’s “bank our base” strategy. The company aims to make Cash App the leading banking service provider targeting US households earning up to $150,000 annually. Block, Inc. (NYSE:XYZ) is creating new offerings and benefits including free overdraft coverage, a 4% savings interest rate, and priority phone support. The company reported that Cash App Card reached 25 million monthly active users by December 2024. In February 2024, Block, Inc. (NYSE:XYZ) also integrated Afterpay with the Cash App Card to allow users to pay for purchases over time. These efforts are expected to boost engagement and usage across the company’s platforms.
2. Cisco Systems, Inc. (NASDAQ:CSCO)
Forward P/E: 17.27
Number of Hedge Fund Holders: 84
Cisco Systems, Inc. (NASDAQ:CSCO) is an American multinational digital communications technology that designs, manufactures, and sells internet and networking equipment, related software and services for network management, security, collaboration, cloud management, and data center solutions. The company plays a crucial role in building and maintaining the infrastructure of the internet and corporate networks. Cisco Systems, Inc. (NASDAQ:CSCO) ranks among the best cheap tech stocks to buy.
On March 3, 2025, Cisco Systems, Inc. (NASDAQ:CSCO) announced its Agile Services Networking innovations at the Mobile World Congress. This new architecture is designed to help service providers introduce differentiated services and compete in the AI marketplace by simplifying, modernizing, and enhancing network performance. It combines high-speed, feature-rich Silicon One routing, unified software, and converged IP and optics to create a seamless, scalable network. The system provides real-time visibility into on-network and off-network connectivity, enabling providers to deliver reliable AI-driven experiences for home and mobile users. Cisco Systems, Inc. (NASDAQ:CSCO) reported that early adopters of Cisco Agile Services Networking are already improving network efficiency, cutting costs, and enhancing the customer experience. This move is part of a broader strategy that positions Cisco Systems, Inc. (NASDAQ:CSCO) as a key player in AI infrastructure and networking solutions.
1. Micron Technology, Inc. (NASDAQ:MU)
Forward P/E: 12.76
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is an American company that specializes in innovative memory and storage solutions. Through its Micron and Crucial brands, the company offers high-performance DRAM, NAND, and NOR memory and storage products. Micron Technology, Inc. (NASDAQ:MU) has a complete portfolio of memory and storage technologies and serves a diverse range of clients in various industries, including artificial intelligence (AI), data center, mobile, industrial, consumer, automotive, and networking markets.
The company is strategically positioning itself to meet the rising demand for advanced memory and storage solutions fueled by AI growth. Micron Technology, Inc. (NASDAQ:MU) is building a new High-Bandwidth Memory (HBM) advanced packaging facility in Singapore. This facility will be the first of its kind in the country. The company plans to invest approximately $7 billion through the end of the decade with an aim to support the growing demand for AI-driven technologies. The facility is scheduled to begin operations in 2026, with capacity expansion planned for 2027. As AI adoption proliferates across industries, Micron Technology, Inc. (NASDAQ:MU) will be looking to address the rising demand for advanced memory and storage solutions.
Overall, MU ranks first among the 10 cheap technology stocks to buy according to hedge funds. While we acknowledge the potential of cheap tech stocks, 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 MU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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