Our list today highlights stocks that are priced under $10 and can offer opportunities for growth. These stocks offer diversification away from the typical large and mid-cap names with the use of lower capital. These stocks often belong to companies that are trying to create niche businesses or are in various stages of product evolution, including emerging growth firms and established businesses, giving tough competition to larger rivals. In our view, this space has the potential for high returns, particularly if these companies can successfully execute their business strategies and capitalize on market trends.
In the technology sector, many undervalued stocks are well-positioned to benefit from the ongoing trends of digital transformation, and transition to cloud and AI. Companies offering innovative software solutions, cybersecurity, and cloud services are anticipated to thrive as businesses continue to invest in technology to enhance their competitive position and security. By identifying promising companies in these areas, investors can potentially achieve good returns although with a little higher risk. That said, we believe that stock selection remains crucial in the small-cap space due to the volatility of these names. For comparison, the S&P SmallCap600 Index has underperformed the broader S&P500 Index over the last 3, 5, and 10 years which indicates that you might not get enough returns if you take a broader approach.
The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide. The integration of AI and ML is revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations globally are undergoing digital transformations to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and services.
On that note, let’s explore our list of the 12 best tech stocks to buy right now under $10.
Highlighting the company’s sector and industry, a technician working on a complex SaaS in a technology lab.
Our Methodology
To shortlist the 12 Best Tech Stocks to Buy Right Now Under $10, we screened technology stocks with current share price below $10. We overlaid this criterion with additional criteria of market capitalization of at least $300 million and a potential upside of greater than 10%. The stocks were then arranged in ascending order of the number of hedge fund holders for each company, based on hedge fund data from Insider Monkey’s database.
Note: all pricing data is as of market close on February 6.
At Insider Monkey we are obsessed with 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).
12 Best Tech Stocks to Buy Right Now Under $10
12. BigCommerce Holdings Inc. (NASDAQ:BIGC)
Current Market Price: $6.63; Upside Potential: 28%
Number of hedge funds: 20
On the bottom of our list is BigCommerce Holdings Inc. (NASDAQ:BIGC), a cloud-based e-commerce platform that empowers businesses to establish and manage online stores. The company provides a comprehensive suite of tools and services designed to support the development, customization, and optimization of e-commerce websites. The platform not only assists customers in creating and managing their own branded online stores but also facilitates seamless integration with various sales channels, including popular online marketplaces, social networks, and offline point-of-sale (POS) systems used in physical stores. BigCommerce Holdings Inc. (NASDAQ:BIGC) caters to a wide range of clients, from small businesses and mid-market enterprises to large corporations.
In Q3 2024, BigCommerce Holdings Inc. (NASDAQ:BIGC) reported a 7.3% year-over-year growth in sales, reaching $83.7 million, which met street expectations. The company’s EPS of USD 0.06 significantly surpassed consensus estimates. Serving both business-to-consumer (B2C) and business-to-business (B2B) merchants on a single platform, BigCommerce Holdings Inc. (NASDAQ:BIGC) expects to benefit from the increasing investment in e-commerce platforms which is projected to grow to $16.5 billion by 2027. With rising demand from larger B2C and B2B merchants, the company focuses on high-value enterprise accounts to support revenue growth.
11. Conduent Inc. (NASDAQ:CNDT)
Current Market Price: $3.94; Upside Potential: 78%
Number of hedge funds: 20
Conduent Inc. (NASDAQ:CNDT) offers business process services (BPS) and technology solutions, focusing on managing critical interactions and transactions for clients across commercial, transportation, and government sectors. The company provides a comprehensive suite of services, including customer experience management, digital payments, government healthcare claims, road usage charging, and transit. Conduent’s technology-driven solutions leverage automation, cloud computing, and AI to deliver mission-critical business process solutions.
Conduent Inc. (NASDAQ:CNDT) announced its mid-term outlook with its Q3 2024 results in November. The company expects adjusted revenue between $3.19 billion and $3.22 billion and an adjusted EBITDA margin between 3.75% and 4.0% for the full year 2024. Additionally, it has forecasted a 2%-4% revenue growth and a 2.0%-2.5% adjusted EBITDA margin expansion for 2025. Under its 2024 divestiture program, Conduent Inc. (NASDAQ:CNDT) has been rationalizing its offerings portfolio under its 2024 divestiture program, and by November, had already allocated 75% of the $1.0 billion of proceeds to debt prepayment and share repurchases, strengthening its financial position.
10. Yext Inc. (NYSE:YEXT)
Current Market Price: $6.62; Upside Potential: 32%
Number of hedge funds: 20
Yext Inc. (NYSE:YEXT) positions itself as a digital presence platform for multi-location brands, aiding them in reaching and serving their end customers. It offers digital knowledge management solutions, enabling businesses to manage their digital knowledge in the cloud, including financial information, resources, and the performance of these resources on a consolidated basis, and synchronizing it with other applications. The platform optimizes brand content to facilitate discovery and drive conversions.
In its December 2024 investor presentation, Yext Inc. (NYSE:YEXT) emphasized its focus on driving profitable growth. Management highlighted their progress towards the ‘rule of 40,’ a key profitability metric in the software-as-a-service (SaaS) industry, measured as the sum of year-over-year revenue growth and profit margin. Based on its Q4 2025 (year ending January 2025) guidance of a 12% revenue growth and a 22% EBITDA margin, the company expects to achieve 34%, nearing this metric. They also projected $420.6 million in revenue and $67.3 million in adjusted EBITDA, indicating a solid EBITDA margin of 16% for FY 2025.
9. Eventbrite Inc. (NYSE:EB)
Current Market Price: $3.40; Upside Potential: 40%
Number of hedge funds: 23
Eventbrite Inc. (NYSE:EB) is a global ticketing and event technology platform that enables users to create, promote, and manage events of all sizes. The company offers a comprehensive suite of tools for event organizers, including ticketing solutions, event marketing, and analytics, catering to a diverse array of events such as concerts, festivals, conferences, and community gatherings. The platform also connects event seekers through its website and mobile application, allowing them to discover and purchase tickets for their chosen events and experiences.
Eventbrite Inc. (NYSE:EB) capitalizes on the rising popularity of live events and has been investing in its technology capabilities to enhance user experience and drive growth. With a strong focus on expanding its market presence and forming strategic partnerships, the company aims to capture a larger share of the growing events market. According to its Q3 2024 investor presentation, the company targets global mid-market events, which had $23 billion in gross bookings for FY 2023. Mid-market events constitute only one-third of the global events bookings of $80 billion, providing substantial room for growth. The increasing trend towards hybrid events, combining in-person and virtual experiences, is expected to further drive demand for Eventbrite Inc. (NYSE:EB)’s platform. Additionally, the company plans to focus on high-margin non-ticketing revenue growth to boost operating margins.
8. Sprinklr Inc. (NYSE:CXM)
Current Market Price: $8.88; Upside Potential: 13%
Number of hedge funds: 24
Sprinklr Inc. engages in customer experience management (CXM), providing an AI-powered unified-CXM platform for businesses to handle customer interactions across various channels, including social media, messaging, and email. The platform integrates data analytics, artificial intelligence, and machine learning to enhance customer engagement, streamline marketing efforts, and improve overall brand experience. Sprinklr serves a diverse clientele, including large enterprises and mid-sized businesses across multiple industries.
As per its Q3 2025 (FY ending January 2025) earnings results, the company’s total revenue grew 8% year-over-year (YoY) to $200.7 million. The subscription business drove the revenue, reaching $180.6 million, a 6% YoY increase, making up 90% of total revenue. Customers with over $1.0 million in subscription revenue rose 20% YoY to 147 in the quarter. The company’s order backlog also remains strong, with the remaining performance obligation (RPO; total contracted revenue but not yet recognized) standing at $906.3 million (+2.2% versus the last quarter).
While the company is experiencing slower revenue growth, its total addressable market remains large at $60 billion. Sprinklr Inc. (NYSE:CXM) expanded its customer base to over 1,800 clients in Q3, indicating good strategy execution. In our view, the company is well-positioned to capitalize on the growing demand for integrated customer experience solutions as businesses increasingly recognize the importance of delivering personalized and consistent experiences.
7. Vimeo Inc. (NASDAQ:VMEO)
Current Market Price: $6.63; Upside Potential: 21%
Number of hedge funds: 25
Vimeo Inc. (NASDAQ:VMEO) is a leading video hosting platform that provides tools for businesses and creators to upload, share, and manage high-quality video content. The company offers a range of services, including video hosting, live streaming, and video monetization solutions, catering to a diverse clientele from individual creators to large enterprises. Its platform is designed to enhance video engagement and analytics, making it a preferred choice for professional video production and marketing.
In early December 2024, an analyst from Piper Sandler upgraded Vimeo Inc. (NASDAQ:VMEO) from Neutral to Overweight, raising the price target from $7 to $10. He also highlighted the stock as his top small-cap internet pick for 2025. The analyst’s optimistic outlook is based on the management’s success in restructuring the cost framework and eliminating inefficient marketing expenditures. He emphasized the impressive performance of the company’s enterprise segment, which now generates an annual run-rate of over $100 million, positioning the company for growth regardless of other segments’ performance. Additionally, he praised the new CEO for accelerating the company’s execution pace.
6. Sabre Corp. (NASDAQ:SABR)
Current Market Price: $3.48; Upside Potential: 15%
Number of hedge funds: 25
Sabre Corp. (NASDAQ:SABR) provides technology solutions to the global travel and tourism industry. The company offers a comprehensive suite of software solutions, data analytics, and distribution services, enabling travel agencies, airlines, and hotels to optimize their operations and enhance customer experiences. Sabre’s platform supports a wide range of travel-related services, including booking, pricing, and revenue management, making it a critical player in the travel technology ecosystem.
As of Q3 2024, Sabre Corp. (NASDAQ:SABR) commands around a 35% share of air distribution industry bookings. Management expects this momentum to continue and aims to gain further share, bolstered by recent commercial deal wins. Central to its growth strategy is the AI-powered SabreMosaic platform, launched in May 2024, which aims to replace traditional Passenger Service Systems (PSS) with this next-generation offer-and-order system. On the profitability front, the company plans to more than double adjusted EBITDA from 2023 to 2025 to enhance free cash flow generation. With a strong emphasis on innovation and strategic partnerships, Sabre Corp. (NASDAQ:SABR) is poised to post strong earnings growth and remain a dominant player in the travel technology sector.
5. Wolfspeed Inc. (NYSE:WOLF)
Current Market Price: $5.91; Upside Potential: 117%
Number of hedge funds: 26
Wolfspeed Inc. (NYSE:WOLF) specializes in manufacturing silicon carbide (SiC) and gallium nitride (GaN) wide bandgap semiconductor solutions, primarily serving the electric vehicle (EV), renewable energy, power supplies, and industrial markets. Its product families include power devices and silicon carbide and gallium nitride (GaN) materials.
On January 29, 2025, Wolfspeed Inc. (NYSE:WOLF) reported its Q2 2025 (FY ending June 2025) earnings results. Revenue for the quarter declined 13% year-over-year (YoY) to $181 million due to weakness in Industrial & Energy end-markets and inventory adjustments from Materials customers. As construction work winds down at its John Palmour manufacturing facility, capex is expected to sharply decrease to around $300 million in FY 2026, down from around $1.1-1.3 billion guided capex in FY 2025.
The company has access to $2.5 billion in funding (including funds from the U.S. CHIPS Act) to support its U.S. capacity expansion plan. Wolfspeed Inc. (NYSE:WOLF)’s growth outlook remains robust as it continues to invest in increasing production capacity, such as the Mohawk Valley Fab, and expanding the materials factory in Durham, North Carolina, and constructing a new materials manufacturing facility in Siler City, North Carolina.
4. Applied Digital Corp. (NASDAQ:APLD)
Current Market Price: $7.88; Upside Potential: 40%
Number of hedge funds: 26
Applied Digital Corp. (NASDAQ:APLD) is a niche player in the data center space, engaged in designing, developing, and operating cutting-edge digital infrastructure throughout North America. Originally a crypto miner, the company terminated mining operations in March 2022 and transitioned to offering digital infrastructure solutions and cloud services to the fast-growing sectors of High-Performance Computing (HPC) and AI.
For the fiscal year ended May 2024, Applied Digital Corp. (NASDAQ:APLD) generated the majority of its revenue (~85%) from its Data Center Hosting (DCH) business, which provides infrastructure services to crypto mining customers, allowing them to rent space based on their power requirements. During the same period, its Cloud Services (CS) business, which provides high-performance computing power for AI and ML applications, commanded 17% of total revenue. By Q2 2025 (November 2024), the revenue mix had substantially improved, with CS revenue witnessing a 523% year-on-year growth.
In addition to these established businesses, Applied Digital Corp. (NASDAQ:APLD) is ramping up its HPC Data Center Hosting business, aimed at designing, building, and operating next-generation data centers for hyperscalers. The company already has a 100 MW HPC facility under construction in Ellendale, North Dakota. To support its growth initiatives, Applied Digital entered into a partnership with Macquarie Asset Management for funding of up to $5.0 billion to support the full 400 MW build-out of the Ellendale HPC Campus.
This is a significant step in Applied Digital Corp. (NASDAQ:APLD)’s growth trajectory, as highlighted by Wes Cummins, Chairman and CEO of Applied Digital:
“We believe this expanded relationship with MAM positions Applied Digital for significant growth in the industry, establishing Applied Digital as one of the fastest-growing HPC data center owners, operators and developers in the United States. At today’s build costs, we will have a significant portion of the equity needed to construct over 2.0 GW of HPC data center capacity, including our Ellendale HPC Campus.”
3. N-Able Inc. (NYSE:NABL)
Current Market Price: $9.76; Upside Potential: 38%
Number of hedge funds: 27
N-Able Inc. (NYSE:NABL) provides cloud-based IT management and security solutions for managed service providers (MSPs). The company offers a comprehensive suite of products designed to enhance the efficiency and effectiveness of IT service delivery, including remote monitoring and management, backup and disaster recovery, and cybersecurity solutions. Its platform is designed to help businesses streamline operations, improve service quality, and drive growth through automation and advanced analytics.
On November 20, 2024, N-Able Inc. (NYSE:NABL) announced the acquisition of Adlumin for a total consideration of $236 million to $266 million ($100 million cash and 1.57 million in N-Able shares). Adlumin is a security-operations-as-a-service platform and an expert in Extended Detection and Response (XDR) and Managed Detection and Response (MDR). Adlumin brings with it $22 million in annual recurring revenue (ARR), which is growing at a robust rate of over 60%. The acquisition enhances the company’s value proposition by combining IT Management, Data Protection, and Security under one roof. Additionally, it unlocks the $163 billion cybersecurity services addressable market for N-Able Inc. (NYSE:NABL), substantially enhancing its growth prospects. With this deal, the company is well-positioned to capitalize on the increasing demand for IT management solutions as businesses continue to adopt cloud technologies and seek to bolster their cybersecurity measures.
2. Marqeta Inc. (NASDAQ:MQ)
Current Market Price: $3.79; Upside Potential: 32%
Number of hedge funds: 33
Marqeta Inc. (NASDAQ:MQ) is a payment processing platform specializing in card issuing and payment solutions and provides a single, global, cloud-based, open API platform for these services. The company offers a flexible and scalable infrastructure, enabling businesses to create tailored payment experiences for their customers. Its platform supports a broad spectrum of payment methods, including both virtual and physical cards, and is designed to facilitate seamless transactions across various sectors, such as fintech, e-commerce, and retail.
In its Q3 2024 earnings report, Marqeta Inc. (NASDAQ:MQ) announced net revenue of $128 million, marking an 18% year-over-year (YoY) increase. The gross profit also rose by 24% YoY, with margins expanding by 300 basis points to 70%, indicating significant profitable growth and improved operating leverage. Total Processing Volume (TPV) surged 30% YoY to $74 billion, showcasing the company’s benefit from the increasing demand for digital payment solutions as businesses shift towards cashless transactions.
On January 22, 2025, Marqeta Inc. (NASDAQ:MQ) revealed its deal to power fintech company Trading 212’s expansion into 20 countries across continental Europe. The company supports the Trading 212 card, a debit card that enhances Trading 212’s customer engagement and relationship with over 3 million users by allowing transactions on the platform with zero foreign exchange and account fees.
Mukid Chowdhury, CEO of Trading 212, stated:
“Marqeta really simplified the process of launching in new countries, allowing Trading 212 to expand quickly and capitalize on our growing momentum in Europe. We’re aiming to unlock the stock market, giving over 3 million customers in the UK and Europe access to investing capabilities that haven’t been easily accessible in the past. The Trading 212 card, powered by Marqeta, is an extension of our brand and helps keep Trading 212 top of mind for our customers in their day-to-day spending.”
1. Alight Inc. (NYSE:ALIT)
Current Market Price: $6.62; Upside Potential: 66%
Number of hedge funds: 40
On the top of our list, we have Alight Inc. (NYSE:ALIT) which is a cloud-based human capital technology and solutions provider. The company specializes in delivering cloud-based services that help organizations manage their employee benefits, payroll, and HR processes efficiently. Alight’s platform integrates data analytics and artificial intelligence to enhance decision-making and improve employee engagement.
In November 2024, Alight Inc. (NYSE:ALIT) reported its Q3 2024 earnings with revenue of $555 million, reflecting a slight decrease of 0.5% year-over-year (YoY). Gross profit increased to $200 million with a margin of 36%, and adjusted EBITDA rose to $118 million with a margin improving by 90 basis points to 21.3%. The company experienced 18.6% growth in Business Process as a Service (BPaaS) revenue, supported by new wins and expanded relationships with Hewlett Packard Enterprise, Nokia, and Siemens. Management expressed optimism about improving financial performance and strong momentum in the commercial segment, leading to a slight increase in FY 2024 revenue guidance.
While we acknowledge the potential of ALIT to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
