In this article, we highlight the 10 Best Beaten Down Technology Stocks to Buy According to Hedge Funds.
A fourth year of substantial gains has finally caught up with investors on Wall Street. While technology stocks have been the main drivers, growing concerns over the sustainability of heavy spending on AI computing threaten the bull run heading into the new year. Steep corrections have already come into play, with some technology stocks shedding more than 30% of their market value in 2025.
Even with these sharp declines, some tech stocks have reached new highs thanks to renewed excitement about artificial intelligence. Optimism about AI and a strong US economy, helped by easier monetary policy, is keeping investors interested in tech stocks despite some recent sell-offs.
“You had a pretty swift pullback in many names and now all of a sudden, that’s being viewed as a buying opportunity and that trend is going to continue because you have really strong earnings,” said Hank Smith, director and head of investment strategy at Haverford Trust.
BlackRock Advisor Institute predicts strong gains for technology stocks in 2026, with AI-related spending expected to average between $5 and $8 trillion. While AI chips will stay important, Morgan Stanley warns that growth may not be as steady as it has been in recent years.
Away from AI chips, Morgan Stanley believes data center connectivity, memory, equipment manufacturing, and analog chips will be the top sectors in tech in 2026.
Our Methodology
To list the 10 Best Beaten Down Technology Stocks to Buy According to Hedge Funds, we used the Finviz stock screener to identify Technology companies trading within 0%–10% of their 52-week lows and showing a year-to-date loss of more than 30%. Elite hedge funds also favor these stocks and offer upside potential of over 20%. We then ranked them in ascending order based on the number of hedge funds holding positions as of Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Best Beaten Down Technology Stocks to Buy According to Hedge Funds
10. MNTN Inc. (NYSE:MNTN)
52-Week Range: $11.46 – $32.49
Share price as of December 24: $11.77
Upside Potential: 75.71%
Year to date Loss: 49.11%
Number of Hedge Fund Holders: 16
MNTN Inc. (NYSE:MNTN) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 4, analysts at Canaccord Genuity reiterated a Buy rating and a $20 price target on MNTN Inc. (NYSE:MNTN).
According to the research firm, MNTN boasts of a strong position in the growing connected TV CTV advertising market. The company’s outlook remains strong, as the connected TV market is increasingly replacing traditional television.
Cannaccord Genuity expects CTV to account for just fewer than 10% of total US media spend while representing 20% of consumption next year. The fact that MNTN specializes in performance-oriented CTV campaigns while leveraging AI-driven creative tools positions it to take advantage of emerging opportunities. It is increasingly serving small and medium-sized businesses by enabling them to run measurable television advertising campaigns.
The research firm expects the company to benefit from industry trends and gain market share by addressing specific market needs. The company has already integrated with the marketing measurement platform Northbeam, which allows marketers to track how TV campaigns perform.
MNTN Inc. (NYSE:MNTN) is a software company that specializes in “Performance TV,” making Connected TV (CTV) advertising as easy and measurable as search and social media. Its self-serve platform helps brands use streaming TV ads to drive tangible results, such as website visits and sales, with features including smart audience targeting, real-time optimization, and conversion tracking.
9. Similarweb Ltd (NYSE:SMWB)
52-Week Range: $6.36 – $17.64
Share price as of December 24: $7.05
Upside Potential: 79.08%
Year to date Loss: 49.61%
Number of Hedge Fund Holders: 17
Similarweb Ltd (NYSE:SMWB) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 15, analysts at Citizens reiterated a Market Outperform rating on Similarweb Ltd (NYSE:SMWB) and maintained a $17 price target.
The research firm remains optimistic about the company’s outlook, impressed by its leading digital intelligence product suite, complemented by GenAI Intelligence and data-selling capabilities for large language models. Likewise, it has touted the company’s long-term prospects while targeting a large total addressable market of $55 billion.
Nevertheless, Citizens’ analysts have also raised concerns over longer sales cycles as the industry transitions from search engine optimization to generative engine optimization. The company could also come under pressure owing to possible spending adjustments by enterprise accounts following Adobe’s pending acquisition of Semrush.
On the other hand, analysts at Oppenheimer reiterated an Outperform rating on the stock but cut the price target to $10 from $12 on December 17. The price target adjustment is in response to demand volatility, artificial intelligence tailwinds, leadership changes, competitive dynamics, and margin trajectory. Amid the challenges, management projects 200-300 basis points of EBIT margin expansion in fiscal 2026 on internal sales improvements, boosting execution and retention. Research and development and G&A expenses are also expected to stabilize.
Similarweb Ltd (NYSE:SMWB) provides a digital intelligence platform that offers data and analytics to help businesses understand online behavior, benchmark against competitors, and optimize digital strategies for growth in marketing, sales, and market research. Its tools analyze website traffic, app usage, consumer behavior, and marketing performance, providing insights into market trends and competitor strategies to support better decision-making.
