12 Best Small Cap Tech Stocks to Buy

7. HashiCorp Inc. (NASDAQ:HCP)

Market Capitalization as of September 11: $6.87 billion

Number of Hedge Fund Holders: 47

HashiCorp Inc. (NASDAQ:HCP) is an American software company and a leading provider of infrastructure automation software, providing tools and products that enable developers, operators, and security professionals to provision, secure, run, and connect cloud-computing infrastructure. These tools can work on cloud, on-premises, and in hybrid environments.

The company reported that the high-value customers, with equal or greater than $100,000 in annual recurring revenue, were 934 in total, an increase of 16 from FQ1 2025, and 83 from FQ2 2024. This represented a 10% year-over-year growth. Customers with ~$100,000 in ARR represented 89% of total revenue in the FQ2 of 2025.

Total revenue was $165.14 million in the second quarter of fiscal 2025, up 15.28% from $143.2 million in the same period last year. The earnings per share were $0.08 compared to -$0.10 in the year-ago quarter.

Quarterly subscription revenue from the HashiCorp Cloud Platform reached $26.5 million in this period, up from $18.4 million in the second quarter of fiscal 2024.

The company’s 34.3% annualized revenue growth over the last three years has been excellent and is a testament to its future success. Analysts covering the company were expecting sales to grow 11.2% over the next 12 months. Such forward-looking statements show that the company is positioned for growth.

As of June 30, 47 hedge funds are long in the company, with the highest stake valued at $129,116,554 by Kryger Capital.

Madison Small Cap Fund stated the following regarding HashiCorp, Inc. (NASDAQ:HCP) in its first quarter 2024 investor letter:

“During the quarter, we sold two stocks (Alteryx and PTC) and initiated two new investment positions (HashiCorp and Mueller Water Products). HashiCorp, Inc. (NASDAQ:HCP) delivers software solutions that help large enterprises migrate their software applications and infrastructure from their own premises and networks to the public cloud. Hashi’s tools help automate and streamline the process and, once in the public cloud, manage their assets’ full lifecycle. We like Hashi’s strong competitive positioning, coupled with their recent pivot to more durable rates of growth and profitability. We estimate PMV at $40.”