The technology sector has provided great returns since the emergence of generative AI, and it was expected to continue performing strongly this year as well. However, fears about infrastructure spending have once again emerged, alongside speculation that certain domains, such as software engineering, face an existential threat due to extremely powerful AI. This is driving down the tech sector.
On 17th February, this sentiment was echoed by Nick Evans, a fund manager at Polar Capital. He believes only a few firms will survive the emergence of AI.
“We think application software faces an existential threat from AI”
Evans believes AI coding tools have turned clients into competitors for many companies, as it becomes easier to develop tools internally. This is not the first time the emergence of a new technology has disrupted markets. In the past, the arrival of personal computing, e-commerce, and online streaming, among other things, disrupted industries but also launched new ones. This is why investors aren’t giving up on tech stocks, despite them not working out for investors so far this year.
Marta Norton, Chief Investment Strategist at Empower, pointed this out in a Reuters report on February 20:
“It’s kind of a perplexing market. Everything that worked in 2025 is now having a hard 2026. And what was left behind in 2025 is working in 2026.”
For those who would rather see this market behaviour as an opportunity, we decided to focus on stocks that were beaten down and trading at their 52-week lows. Our list of 11 best 52-week low technology stocks to buy now achieves exactly this purpose.
Source: Pixabay
Our Methodology
To compile our list of the 11 best 52-week low technology stocks to buy now, we looked at companies in the technology sector with a market cap of at least $2 billion. We then filtered for companies that were trading within a 0% to 3% range of their 52-week lows. From this pool, we selected 11 companies with the highest potential upside, based on their consensus price targets, and ranked them in ascending order. We also included data on hedge fund holdings in these companies based on Insider Monkey’s database, as of Q3 2025.
Why do we care about what hedge funds do? 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: All share price data in the article is as per market close on February 19.
11. Blackbaud, Inc. (NASDAQ:BLKB)
Potential Upside: 21.19%
Number of Hedge Fund Holders: 34
Robert W. Baird maintained its Neutral rating on Blackbaud, Inc. (NASDAQ:BLKB) and lowered its price target on February 11. The firm lowered its price target on the stock to $60 from $70. The adjusted price target implies an additional 25.76% upside from current levels, which is equal to the median Wall Street analyst’s upside estimate among 6 analysts covering the stock. The rating came as the firm updated its financial model following the company’s fourth-quarter financial results. Q4 results showed strong performance, and the management provided an encouraging outlook for 2026.
In addition to Robert W. Baird, Raymond James also lowered its price target on Blackbaud, Inc. (NASDAQ:BLKB) from $85 to $60 while maintaining its Outperform on February 10. The analyst said that the company delivered better-than-expected fourth-quarter results and provided the 2026 outlook above consensus estimates. Moreover, the company also introduced a long-term plan aiming for mid-single digit growth through 2030, while continuing to improve margins. According to the firm, Blackbaud, Inc. (NASDAQ:BLKB) stands out as a leader in its vertical software market despite weak sentiment around the software stocks. The analyst highlighted its compelling valuation, broad product portfolio, and AI initiatives with measurable and clear returns as key factors that make it an attractive investment option.
Blackbaud, Inc. (NASDAQ:BLKB) operates as a provider of cloud software and services across the United States and internationally. It provides fundraising and engagement solutions, financial management solutions, grant & award management solutions, and education solutions. The company was incorporated in 1981 and is based in Charleston, South Carolina.
10. Qualys, Inc. (NASDAQ:QLYS)
Potential Upside: 30.81%
Number of Hedge Fund Holders: 31
On February 9, UBS analyst Roger Boyd lowered the firm’s price target on Qualys, Inc. (NASDAQ:QLYS) from $150 to $140 while maintaining a Neutral rating. The firm’s revised price target reflects an additional 35.6% upside from the current levels. This upside is consistent with the median Wall Street analysts’ upside of 30.81% according to 26 analysts covering the stock.
Prior to the price target adjustment, Qualys, Inc. (NASDAQ:QLYS) reported its fourth-quarter FY 2025 results on February 6. The company posted a revenue growth of 10% for the quarter. For Q4, revenue came in at $175.3 million, with Channel partners making up 51% of the total revenue. However, channel revenue rose 17%. Revenue from International markets grew 15%, beating the domestic market revenue growth of 6%. The company generated $74.9 million in free cash flows during the quarter.
Adjusted EBITDA was $82.6 million while earnings were $1.87 per diluted share for the quarter. Due to an increase in sales and marketing, operating expenses reached $68.9 million, reflecting a 11% rise.
For 2026, Qualys, Inc. (NASDAQ:QLYS) projects revenue to be in the range of $717 million to $725 million, representing 7% to 8% growth. For the first quarter of 2026, revenue is estimated to range from $172.5 million to $174.5 million, indicating a 8% to 9% growth rate. For Q1, earnings are expected in a range of $1.76 to $1.83 per share.
Joo Mi Kim, CFO at Qualys, Inc. (NASDAQ:QLYS), commented on the guidance:
“This guidance assumes no material change in our net dollar expansion rate with moderate growth contribution from new business in 2026.”
Qualys, Inc. (NASDAQ:QLYS) operates as a cloud-based platform provider. The company delivers security, information technology (IT), and compliance solutions across the United States and internationally. It was founded in 1999 and is based in Foster City, California.
