Marta Norton, the chief investment strategist at Empower, appeared on CNBC’s ‘Squawk Box’ on March 26 to express her bullish outlook on small caps and emphasize that the market’s short-term trajectory depends on upcoming tariff decisions. The question is whether tariffs are short-term and less disruptive negotiating tools, or a disruptive and longer-lasting precursor to a shift in global trade that could address the trade deficit, and create extra revenue for the federal government. Norton explained that tariffs initially affect earnings and are then followed by the companies’ attempts to pass increased costs to consumers. However, this usually doesn’t happen due to demand elasticity and the general nature of consumers. Sectors like tech show minimal earnings revisions despite the potential cost and revenue impacts that come from retaliatory measures.
Norton advised investors to go for a balanced approach in 2025 and stated that there aren’t many areas where you can move in right now, but small caps are an exception to this sentiment. Small-cap stocks have transitioned from relatively cheap to absolutely cheap very recently. While small caps exhibit economic sensitivity, adding positions in them is relatively safer. Later, on March 29, Tony Wang, T. Rowe Price portfolio manager, joined ‘Closing Bell Overtime’ on CNBC to talk about the volatility in tech, and whether it’s a time for heightened caution or not. Wang noted that this volatility is more likely a buying opportunity than not. He observed that growth and momentum in the tech sector have been high in the past few years. The tech sector in particular recently saw two years of strong growth. He thinks that valuations haven’t yet reached capitulation levels.
With these sentiments, we’re here with a list of the 13 best technology penny stocks to buy right now.
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Our Methodology
We sifted through the Finviz stock screener to compile a list of the top technology penny stocks that were trading under $5 as of March 28. We then selected the 13 technology stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Best Technology Penny Stocks to Buy Right Now
13. E2open Parent Holdings Inc. (NYSE:ETWO)
Share Price as of March 28: $2.26
Number of Hedge Fund Holders: 17
E2open Parent Holdings Inc. (NYSE:ETWO) provides cloud-based and end-to-end supply chain management and orchestration SaaS platform globally. Its software combines networks, data, and applications to offer a deeply embedded and mission-critical platform that allows clients to optimize their channels and supply chains.
In FQ3 2025, the company’s subscription revenue reached $132 million, despite a 0.6% decline year-over-year. This decline was still lower than what the company had seen in the previous four quarters. Customer satisfaction and retention drove this improvement. The company now projects a full-year 2025 revenue between $526 to $529 million. However, this will reflect a 1.5% to 2% drop overall.
The company is expanding its subscription client base and securing deals with both new and existing customers to counter these drops. For instance, a major industrial equipment manufacturer extended their existing subscription for collaboration solutions and supply planning with E2open Parent Holdings Inc. (NYSE:ETWO). The company is now actively incorporating AI into its logistics and trade applications to further streamline the decision-making process. The end goal is to improve the subscription platform.
12. Wipro Ltd. (NYSE:WIT)
Share Price as of March 28: $3.13
Number of Hedge Fund Holders: 18
Wipro Ltd. (NYSE:WIT) is an IT, consulting, and business process services company that operates through its IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services that range from digital strategy advisory to systems integration. The IT Products segment provides third-party IT products such as enterprise platforms and data storage products.
The company’s IT services revenue majorly contributes to its growth, both geographically and by industry. The segment’s revenue for the Americas improved year-over-year due to the health and technology sectors. However, there were declines in the rest of the global regions. In FQ3 2025, the segment’s revenue reached $2.63 billion after a slight increase of 0.1% sequentially. This still marked a 0.7% decline year-over-year. The drop was lower than what management had anticipated.
To grow this sector sustainably, Wipro Ltd. (NYSE:WIT) focuses on large deals. It closed 17 large deals valued together at $1 billion in FQ3. These included a vendor consolidation deal with an American retail and distribution company. There was also an AI-integrated tech modernization collaboration with a Middle Eastern airline. This shows that the company is investing in AI capabilities, with 50,000 of its employees holding AI certifications.
