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.
11. Clarivate (NYSE:CLVT)
Share Price as of March 28: $4.09
Number of Hedge Fund Holders: 20
Clarivate (NYSE:CLVT) provides information services and operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. It provides scientific & academic research, solutions, and expertise for research institutions. Its platform allows companies to secure, manage, and protect their IP assets. It also assists decisions regarding drug development lifecycles.
The company has a focus on its recurring revenue stream, particularly its subscription-based offerings. In Q4 2024, subscriptions grew by ~1%, although the recurring revenues were flat. The company’s Value Creation Plan (VCP) has been designed to improve the predictability of subscription and recurring sales. The end goal is to increase the recurring revenue mix from 80% to 87% in 2025, which will mark a 5% year-over-year rise.
To make this happen, the company transitioned its ProQuest ebooks and digital collections in the Academia and Government segment to a subscription-only model. The aim is to make 90% of this segment subscription-based. In Life Sciences as well, the company launched a subscription-based real-world data analytics product. Clarivate (NYSE:CLVT) is also investing in AI-driven solutions to further enhance the subscription offerings.
Cove Street Capital Small Cap Value Fund added a position earlier last year in the company due to its ability to provide aggregated solutions to customers. The fund stated the following regarding Clarivate Plc (NYSE:CLVT) in its Q2 2024 investor letter:
“We also added a position in Clarivate Plc (NYSE:CLVT), a data services provider that operates across academic research, intellectual property, and life sciences. We came to the investment from cross-work in another holding, Research Solutions (ticker: RSSS). Ultimately this company sucks in data from participants in the industry, aggregates it, and provides value added services and tools back to those industry participants. The power is in providing customers access to the aggregate. This was a private equity roll-up of a bunch of different data assets that paid too little attention to product innovation, leading to a period of stagnating growth and repeatedly missing guidance. The business of selling many tools and services on a pile of fixed cost assets (data) remains tremendous as can be seen by Clarivate’s mid-to-high 30% EBITDA margins and strong returns on invested capital. With new management and board members in place and 18 months of an “investment cycle” under their belt, we view the risk/reward of CLVT to be favorable at these levels, with a strong upside case if they can reinvigorate growth to their target levels.”
10. Conduent Inc. (NASDAQ:CNDT)
Share Price as of March 28: $2.88
Number of Hedge Fund Holders: 20
Conduent Inc. (NASDAQ:CNDT) offers digital business solutions and services globally. It operates through three segments. The Commercial segment offers business process services and customized solutions, the Government segment provides government-centric business process services, and the Transportation segment offers solutions to government transportation agency clients.
The commercial segment of the company is driven by customer retention and improved sales. Specifically, from Q2 to Q4 2024, the segment was able to win new customers and also made additional revenue from selling different services to existing clients. This was a rebound from the slow performance of 2023. However, the total revenue in Q4 2024 decreased by 3.7% year-over-year. The company managed to add around 2,500 offshore seats to increase capacity, which will be available in H1 2025.
In 2025, the company expects the commercial segment to rise by 2%. To be able to do so, Conduent Inc. (NASDAQ:CNDT) is making investments in new talent and offshore capabilities. It’s also integrating GenAI into its offerings to improve customer experiences and fraud detection.
9. indie Semiconductor Inc. (NASDAQ:INDI)
Share Price as of March 28: $2.26
Number of Hedge Fund Holders: 22
indie Semiconductor Inc. (NASDAQ:INDI) is an automotive semiconductors and software solutions company. It caters to markets for advanced driver assistance systems, driver automation, in-cabin, connected cars, and electrification applications. It offers products like ultrasonic sensors for parking assistance and radar sensors for audio assistance. It also provides LiDAR.
The company is focused on developing and selling cameras and image-processing chips to enhance vehicle safety and automation. Its Vision Products target various Advanced Driver Assistance Systems (ADAS) applications. Recently, the company’s iND880 Vision Processor was chosen by a Korean OEM for front sensing and occupant monitoring in new EVs. The production for these is likely to begin in 2027. The iND880 has also secured wins in China for multi-channel sensor applications. This Vision Processor has low power consumption and low latency which makes it highly valuable.
indie Semiconductor Inc.’s (NASDAQ:INDI) products are being rapidly adopted within the automotive sector. Some of the significant design wins include the ones with General Motors, Toyota, and Ford. The company is well-positioned to capitalize on the increasing demand for vision-based ADAS technologies due to both consumer preferences and global regulations.
8. BlackBerry Ltd. (NYSE:BB)
Share Price as of March 28: $3.96
Number of Hedge Fund Holders: 23
BlackBerry Ltd. (NYSE:BB) provides intelligent security software and services to global enterprises and governments. It operates through its Cybersecurity, IoT, and Licensing & Other segments. Its products range from integrated endpoint security solutions to cyber security consulting services. It’s also involved in the patent licensing and legacy service access fees business.
The company’s IoT division performed strongly in FQ3 2025 and exceeded the upper end of management’s guidance range by making a total of $62 million in quarterly revenue. This was a 13% increase year-over-year, which was driven by royalties and development seat licenses. The automotive sector, especially digital cockpit and ADAS applications, contributed significantly to this growth. BlackBerry Ltd. (NYSE:BB) now expects to generate $230 to $235 million in IoT revenue for FY25.
The growth was also fueled by key design wins in the division. The company secured a major deal with a German luxury automaker for the QNX hypervisor. This is a software layer that allows multiple operating systems to run safely on a single hardware platform. It forms the foundation of a digital cockpit software stack. Additionally, a major Asian auto OEM also chose the QNX operating system for ADAS deployment.
7. Riskified Ltd. (NYSE:RSKD)
Share Price as of March 28: $4.77
Number of Hedge Fund Holders: 23
Riskified Ltd. (NYSE:RSKD) offers an e-commerce risk-intelligence platform that allows online merchants to create trusted relationships with global consumers. Its services range from ensuring the legitimacy of merchants’ online orders to helping merchants avoid bank authorization failures and abandoned shopping carts. It serves DTC brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers.
The company’s PolicyProtect product addresses return and claim abuse in e-commerce. This market segment represents more than $100 billion in potential losses. The PolicyProtect product reduces this issue through steps like instant refunds based on risk assessments and the prevention of resale of limited-run items. This product drove the company’s overall 2024 revenue to grow greatly by 90% year-over-year.
Riskified Ltd. (NYSE:RSKD) has also partnered with Appriss Retail to integrate data on consumer shopping patterns to assist with customer interactions across online and offline channels. The company is investing in improving the product’s accuracy and scalability to increase adoption among merchants. It has introduced the Decision Studio, which helped merchants create, simulate, and manage customer-facing policy decisions.
6. Expensify Inc. (NASDAQ:EXFY)
Share Price as of March 28: $3.31
Number of Hedge Fund Holders: 23
Expensify Inc. (NASDAQ:EXFY) provides a global cloud-based expense management software platform. Its platform offers corporate card management, bill payment, invoice generation, payment collection, and travel booking services, along with track and submitting plans for individuals. It serves individuals and corporations, small and mid-sized businesses, and enterprises.
The company is integrating AI into its operations to drive efficiency and reduce costs. It has greatly enhanced its SmartScan functionality. SmartScan has minimized the need for human intervention in receipt processing by using advanced LLMs and Optical Character Recognition (OCR) technology. This enhancement from AI has resulted in accelerated scanning speeds and higher accuracy.
The Concierge AI, which is the company’s AI-powered virtual assistant, has also been upgraded. It uses LLM technology to enable faster and more natural chat-based interactions with customers. This has lowered the need for human intervention in such interactions by 80%. Expensify Inc. (NASDAQ:EXFY) saw a massive 4,200% increase year-over-year increase in free cash flow in FY24.
5. Unisys Corp. (NYSE:UIS)
Share Price as of March 28: $4.65
Number of Hedge Fund Holders: 25
Unisys Corp. (NYSE:UIS) is a global IT solutions company that operates in three segments. These include Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions (ECS). The company also offers various micro-market and business process solutions. It serves industries that include financial services, travel and transportation, healthcare industries, and government agencies among others.
The company is currently implementing its ClearPath Forward 2050 strategy, which focuses on modernizing the company’s legacy ClearPath systems through the integration of cloud and emerging technologies. ClearPath systems refer to the company’s powerful and secure enterprise computing platforms for mission-critical and high-volume transactions. Due to this strategy, Unisys Corp.’s (NYSE:UIS) License and Support (L&S) segment is growing with the segment’s expected revenue for 2025 projected to reach $390 million.
In Q4 2024, L&S revenue improved by 8.4% year-over-year and resulted in a full-year figure of $432 million. This came from long-term L&S renewals secured during Q4 with travel & transportation clients and public sector clients. The company’s ability to modernize services from both Enterprise Computing Solutions (ECS) and Cloud Applications & Infrastructure (CA&I) was a key reason for these renewals.
4. Sabre Corp. (NASDAQ:SABR)
Share Price as of March 28: $3.27
Number of Hedge Fund Holders: 31
Sabre Corp. (NASDAQ:SABR) is a software and technology company for the global travel industry. It has two segments, which are called Travel Solutions and Hospitality Solutions. The Travel Solutions segment operates a B2B travel marketplace along with software technology products and solutions through SaaS. The Hospitality Solutions segment offers software and solutions to hoteliers.
The company’s Hospitality Solutions segment achieved a record-high total revenue in 2024, which was driven by higher Central Reservation System (CRS) transactions. This refers to a computerized system that manages hotel room inventory and reservations. This increase came from new customer deployments and a favorable customer mix. The Q4 2024 Hospitality Solutions revenue was up 8% year-over-year and amounted to $81 million.
This acceleration is fueled by new businesses like the Hyatt deployment. This refers to the process of implementing Sabre Corp.’s (NASDAQ:SABR) CRS technology for the global Hyatt Hotels. The company is also seeing improvements in its SynXis Retail Studio, which enables hoteliers to enhance revenue through personalized offers.
3. Blend Labs Inc. (NYSE:BLND)
Share Price as of March 28: $3.44
Number of Hedge Fund Holders: 33
Blend Labs Inc. (NYSE:BLND) offers cloud-based software platform solutions for financial services firms in the US. It operates through the Blend Platform segment and the Title365 segment. The Blend Builder Platform offers products that power digital-first consumer journeys for services like mortgages and loans. The company also provides professional and consulting services.
In Q4 2024, revenue for the company’s Consumer Banking segment surged by 48% year-over-year and reached the $9.5 million mark. The full-year 2024 revenue for this segment experienced a 42% growth. This was fueled by the company’s ability to offer solutions to institutions that extend beyond mortgage lending. This includes consumer deposit account opening and customized lending solutions.
Blend Labs Inc. (NYSE:BLND) is seeing strong adoption of its home equity products within the Consumer Banking segment. These are financial products that allow homeowners to borrow money using their equity. The company’s rapid home equity products solution incorporates next-gen speed into the home equity lending workflow and is quite popular among customers. Around 100 customers use this flagship solution.
2. Marqeta Inc. (NASDAQ:MQ)
Share Price as of March 28: $4.29
Number of Hedge Fund Holders: 37
Marqeta Inc. (NASDAQ:MQ) operates a cloud-based open API platform for card issuing and transaction processing services. Its platform provides access to bank accounts and money movement features. It offers its solutions in verticals like financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later providers.
The company’s European business is a major contributor to its overall growth. The total Q4 2024 Total Processing Volume (TPV) in Europe increased by over 100% year-over-year. The company is enhancing its program management capabilities in Europe to attract more customers who seek embedded finance solutions and match its offerings in the US. In Q4, the company secured a deal with one of Europe’s fastest-growing tech companies to provide it with commercial card processing and program management.
The company is also acquiring TransactPay, which is a European Electric Money Institution (EMI). This aims to address the regulatory challenges in the UK and Europe, where an EMI license is needed for issuing and managing electric money. This acquisition is expected to close in mid-2025 and will allow Marqeta Inc. (NASDAQ:MQ) to combine all of its offerings for customers and reduce the complexity associated with contracting multiple partners.
1. Grab Holdings Ltd. (NASDAQ:GRAB)
Share Price as of March 28: $4.8
Number of Hedge Fund Holders: 57
Grab Holdings Ltd. (NASDAQ:GRAB) operates a superapp in Southeast Asia. It operates through four segments. These include Deliveries, Mobility, Financial Services, and Others. Its Grab ecosystem is a single platform with superapps for driver and merchant partners along with consumers, for mobility, delivery, and digital financial services.
The company focuses on using its ecosystem to drive cross-selling. For instance, customers who use both the Food and Mart services have a 4 times higher spending and 2.5 times higher frequency uplifts as compared to those only using the food delivery services. Retention rates are also twice as much for these customers. This drives high on-demand Gross Merchandise Value (GMV). The company reported a 20% year-over-year improvement in on-demand GMV in Q4 2024.
This is attributed to product and tech-led initiatives. Key examples of such initiatives include Saver Rides and Priority Deliveries. These features improve affordability and reliability and hence help attract and retain customers. Grab Holdings Ltd. (NASDAQ:GRAB) is also investing in the Southeast Asian market, which is potentially under-tapped.
As we acknowledge the growth potential of Grab Holdings Ltd. (NASDAQ:GRAB), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GRAB 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 30 Best Stocks to Buy Now According to Billionaires.
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