5 Best Small Cap Tech Stocks To Buy

In this article, we discuss 5 best small cap tech stocks to buy. If you want to read our detailed discussion on the tech industry, head over to 12 Best Small Cap Tech Stocks To Buy. 

5. EchoStar Corporation (NASDAQ:SATS)

Number of Hedge Fund Holders: 28

EchoStar Corporation (NASDAQ:SATS) offers networking technologies and services worldwide. The company operates through two segments – Hughes and EchoStar Satellite Services (ESS). The company provides broadband network technologies, managed services, satellite services, and communications solutions to government and enterprise customers. It also designs, installs, and offers equipment for other satellite systems. EchoStar Corporation (NASDAQ:SATS) is one of the best technology stocks to monitor. On May 9, the company reported Q1 GAAP earnings per share of $0.35 and a revenue of $439.6 million. Cash, cash equivalents, and current marketable investment securities stood at $1.7 billion at the end of Q1 2023.

According to Insider Monkey’s first quarter database, 28 hedge funds were bullish on EchoStar Corporation (NASDAQ:SATS), compared to 23 funds in the earlier quarter. Mark G. Schoeppner’s Quaker Capital Investments is the biggest stakeholder of the company, with 2 million shares worth over $37 million. 

Steel City Capital made the following comment about EchoStar Corporation (NASDAQ:SATS) in its Q3 2022 investor letter:

“Virtually all of the Partnership’s year-to-date decline emanates from our long book. In aggregate, our short positions have partially offset this performance. Outsized declines have come from EchoStar Corporation (NASDAQ:SATS) and Anterix (ATEX). With SATS, I think we “bought well” in the sense that our position was established at an average price of $23.40 vs. the most recent price of $17.40. There certainly remains the risk we’ve invested in a “value-trap” / “melting-ice cube,” but I’ll try to explain why I think that outlook isn’t completely accurate.

I tend to think of SATS as an iceberg whose peak – the portion visible above water – reflects only a small part of its totality. The visible portion is the company’s legacy satellite broadband business that, at the current time, is shedding customers at an unhealthy clip. The main culprit is most likely Elon Musk’s Starlink, which currently offers more attractive speeds (100 Mbps) and lower latency. Maybe I’m being pollyannaish about the situation, but I believe when SATS brings its Jupiter 3 satellite online next year, and is capable of delivering the same speeds as Starlink, churn will not only slow, but subscriber counts should begin to rebound. SATS will never be competitive with respect to latency, but that doesn’t keep me up at night. That’s not to discount the draw of low latency, which is important for use cases such as video conferencing and gaming, but when your target customer base is scraping by with max speeds of just 25 Mbps, the prospect of 100 Mbps should be highly attractive. Moreover, as I’ve discussed in prior communications, the financial case for Starlink is unproven and it remains to be seen whether or not Musk can ever make the unit economics work…” (Click here to read the full text)

4. MaxLinear, Inc. (NASDAQ:MXL)

Number of Hedge Fund Holders: 29

MaxLinear, Inc. (NASDAQ:MXL) offers communications systems-on-chip solutions worldwide for connected homes, wired and wireless infrastructure, and various industrial applications. The company’s products combine different components of high-speed communication systems, including radiofrequency, analog, digital signal processing, security engines, data compression, networking layers, and power management. MaxLinear, Inc. (NASDAQ:MXL) is one of the best technology stocks to watch. 

On July 26, MaxLinear, Inc. (NASDAQ:MXL) reported a Q2 non-GAAP EPS of $0.34, beating market estimates by $0.01. However, the revenue came in at $183.9 million, falling short of Wall Street forecasts by $6.48 million. 

According to Insider Monkey’s first quarter database, 29 hedge funds were bullish on MaxLinear, Inc. (NASDAQ:MXL), compared to 22 funds in the earlier quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest stakeholder of the company, with 420,901 shares worth $14.8 million. 

3. indie Semiconductor, Inc. (NASDAQ:INDI)

Number of Hedge Fund Holders: 30

indie Semiconductor, Inc. (NASDAQ:INDI) offers automotive semiconductors and software solutions worldwide, catering to applications such as advanced driver assistance systems, autonomous vehicles, in-cabin technology, connected cars, and electrification. indie Semiconductor, Inc. (NASDAQ:INDI) is one of the top technology stocks to buy. The company’s Q1 revenue increased approximately 84% on a year-over-year basis to $40.45 million, beating Wall Street estimates by $0.43 million. However, Q1 GAAP EPS of -$0.55 fell short of market consensus by $0.40.

According to Insider Monkey’s first quarter database, 30 hedge funds were bullish on indie Semiconductor, Inc. (NASDAQ:INDI), compared to 23 funds in the prior quarter. George Soros’ Soros Fund Management is the largest stakeholder of the company, with 3.2 million shares worth $34.2 million. 

Baron Opportunity Fund made the following comment about indie Semiconductor, Inc. (NASDAQ:INDI) in its Q1 2023 investor letter:

“indie Semiconductor, Inc. (NASDAQ:INDI) is a designer, developer, and marketer of automotive semiconductors for advanced driver assistance systems (ADAS) as well as connected car, user experience, and electrification applications. Shares rose during the quarter after the company announced the acquisition of GEO Semiconductor and met or exceeded revenue and gross margin guidance for the seventh straight quarter since coming public. After raising capital in late 2022 to fund acquisition activity – we increased our position size when the stock traded down on this convertible bond deal – early this year indie announced its buyout of GEO Semiconductor for up to $270 million (including potential earnouts), to round out its ADAS sensor portfolio with a leader in camera processing technology. We find GEO Semiconductor to be a synergistic acquisition that accelerates indie’s growth and margin trajectory. The automotive semiconductor vertical remains attractive. We believe indie will continue to deliver on its targeted model of profitability in the second half of 2023, achieving 60% gross margins and 30% operating margins by 2025. We also project that indie continues to rapidly increase revenue, as it fulfills its $4.2 billion, and growing, strategic backlog.”

2. Silicon Motion Technology Corporation (NASDAQ:SIMO)

Number of Hedge Fund Holders: 34

Silicon Motion Technology Corporation (NASDAQ:SIMO) is one of the best technology stocks to watch. The company designs and develops NAND flash controllers for solid-state storage devices. Their product range includes controllers for computing-grade SSDs, enterprise-grade SSDs, mobile embedded storage for smartphones and IoT devices, flash memory cards, flash drives for expandable storage, and specialized SSDs for industrial, commercial, and automotive applications. 

On July 28, Silicon Motion Technology Corporation (NASDAQ:SIMO) reporteds Q2 non-GAAP EPADS of $0.38, missing estimates by $0.10. On the other hand, the revenue of $140.4 million outperformed Wall Street forecasts by $11.77 million. The company anticipates a 15% to 20% sequential growth in sales for the third quarter of 2023, compared to an estimated year-over-year decline of 41.47%.

According to Insider Monkey’s first quarter database, 34 hedge funds were bullish on Silicon Motion Technology Corporation (NASDAQ:SIMO), compared to 35 funds in the prior quarter. Michel Massoud’s Melqart Asset Management is a prominent stakeholder of the company, with 979,212 shares worth $64.15 million. 

1. Payoneer Global Inc. (NASDAQ:PAYO)

Number of Hedge Fund Holders: 37

Payoneer Global Inc. (NASDAQ:PAYO) is a global payment and commerce-enabling platform that offers cross-border payments, B2B accounts, multi-currency accounts, Mastercard cards, working capital, merchant services, tax compliance, and more. Payoneer serves around 190 countries and territories worldwide. Payoneer Global Inc. (NASDAQ:PAYO) is one of the best technology stocks to invest in. 

According to Insider Monkey’s first quarter database, 37 hedge funds were bullish on Payoneer Global Inc. (NASDAQ:PAYO), compared to 31 funds in the earlier quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest stakeholder of the company, with 9.25 million shares worth $58 million. 

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