10 Best Beaten-Down Technology Stocks to Buy Now

In this article, we will discuss the 10 Best Beaten-Down Technology Stocks to Buy Now.

Technology stocks remain under pressure amid a major global sell-off, driven by stretched valuations and concerns over massive debt-funded AI infrastructure spending. The selloff comes on valuations reaching levels historically associated with major downturns as measured by the Buffett Indicator.

The indicator, which compares total U.S. stock market capitalization with gross domestic product, rose to 218% early in the year, just shy of the record 219% reached in the prior quarter. The spike is already sending shockwaves, fueling suggestions of a potential correction.

Similarly, investors are becoming increasingly skeptical of the astronomical gains ‌in AI and semiconductor stocks, questioning whether Wall Street is inflating another speculative bubble.

“The strong and almost steady outperformance since last September of semiconductor stocks (i.e., AI chip and memory makers) vs. hyperscalers (i.e., AI cloud providers) appears somewhat unsustainable in the long run,” said JPMorgan analyst Nikolaos Panigirtzoglou.

Amid soaring selling pressure, earnings growth, and the prospect of the US Federal Reserve slowing its interest rate hikes, the battered technology sector is finding a ray of hope. According to Freedom Capital Markets’ Paul Meeks, some corners of the technology sector have created opportunities to snap up top-quality names at a discount.

“Some of our favorites, even tech companies that we don’t formally cover, are screaming buys,” Meeks said in a note. “skeptics have exaggerated the threats” to its AI chip franchise, and investors’ reluctance to reward Nvidia for strong growth in its fundamentals “ain’t right.”

With that in mind, let’s take a look at some of the best beaten-down technology stocks to buy according to Wall Street analysts.

Our Methodology

To curate our list of the Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts, we used Finviz and Yahoo! screeners to identify stocks operating in technology-driven industries, including software infrastructure and data-enabled platforms. We then focused on stocks that have lost 15% or more year-to-date and are trading 0-10% near their 52-week lows (as of July 2). We then settled on the 10 stocks that are also popular among elite hedge funds in Q1 2026. The stocks are ranked in ascending order based on their hedge fund holdings.

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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

Best Beaten-Down Technology Stocks to Buy Now

10. CGI Inc. (NYSE:GIB)

Year-to-Date Performance: -29.15%

Number of Hedge Fund Holders: 21

CGI Inc (NYSE:GIB) is one of the best beaten-down technology stocks to buy now. On June 22, CGI Inc (NYSE:GIB) and NetApp deepened their global alliance in the race to drive innovation, accelerate growth, and strengthen client outcomes.

As part of the partnership, NetApp Keystone is to power CGI’s block storage solutions within the shared service platform. Similarly, it will enable a subscription-based service that adapts to changing business needs, enabling customers to accelerate critical block workloads.

The storage solution will come with built-in security that provides real-time threat detection, protection, and recovery. CGI’s edge in digital transformation, cloud, AI, and managed services will help clients strengthen operational efficiency, enhance cybersecurity, and accelerate innovation.

CGI and NetApp are working to help organizations modernize IT infrastructure and improve data management. The companies also plan to advance artificial intelligence across private, public, and hybrid cloud environments. The ultimate goal is to help customers build an intelligent data infrastructure supported by scalable storage capabilities.

CGI Inc. (NYSE:GIB) is a massive global IT and business consulting firm that provides end-to-end digital services, including system integration, software engineering, and managed IT services. It operates worldwide, helping commercial enterprises and government agencies—such as defense and health services—optimize operations and modernize their technology.

9. Sony Group Corporation (NYSE:SONY)

Year-to-Date Performance: -20.32%

Number of Hedge Fund Holders: 27

Sony Group Corp (NYSE:SONY) is one of the best beaten-down technology stocks to buy now. On July 1, Sony Interactive Entertainment (SIE), a wholly owned subsidiary of Sony Group Corp (NYSE:SONY), announced it will be closing the PlayStation Store on PS3 and PS Vita globally in 2027.

Sony says the PlayStation Store on PS3 will close in select markets starting this year, followed by global closures next year.

The announcement comes on the heels of Sony confirming that physical disc production  for new games will end in 2028. The company also confirmed it is closing the PlayStation Store on these older consoles, though previously purchased content will remain downloadable for the foreseeable future. In addition, it has reiterated that the focus is on expanding the PlayStation experience across newer devices that users use to play games.

Sony Group Corporation (NYSE:SONY) is a massive Japanese conglomerate that operates as a premier entertainment, technology, and financial services company. Its core businesses span video games (PlayStation), music and film production, high-end consumer electronics (cameras, TVs, audio), and the manufacturing of image sensors used in most modern smartphones.

8. Infosys Limited (NYSE:INFY)

Year-to-Date Performance: -42.20%

Number of Hedge Fund Holders: 31

Infosys Limited (NYSE:INFY) is one of the best beaten-down technology stocks to buy now. On June 24, Infosys Ltd (NYSE: INFY) entered into a strategic collaboration with Sentara to build a foundation for AI development across hospital operations, IT, and clinical support. The ultimate goal is to enhance efficiency, support clinicians, and improve the experiences of patients and members.

Infosys is to deploy its Topaz Fabric platform, a purpose-built agentic services suite, to help Sentara scale AI use cases from pilot programs to full production across enterprise systems. The approach will also help the not-for-profit healthcare organization prioritize high-value use cases, scale successful pilots, and evolve AI capabilities across business operations.

According to Venky Ananth, EVP and Global Head, Healthcare at Infosys, the strategic collaboration with Sentara will help unlock AI value by building a strong enterprise AI foundation. It will also accelerate operationalizing across hospital systems, leading to real efficiency gains for patients.

Infosys Limited (NYSE:INFY) is a global technology consulting, IT services, and digital transformation company. They help businesses across 59 countries modernize their operations by building custom software, migrating to the cloud (Infosys Cobalt), integrating generative AI (Infosys Topaz), and managing everyday tech systems.

7. Strategy Inc. (NASDAQ:MSTR)

Year-to-Date Performance: -44.69%

Number of Hedge Fund Holders: 32

Strategy Inc. (NASDAQ:MSTR) is one of the best beaten-down technology stocks to buy now. On July 1, Citi cut its price target of Strategy Inc. (NASDAQ:MSTR) to $136 from $260 while reiterating a Buy rating. Despite the cut, the new price target represents significant upside potential as the stock is trading at about $93 a share.

The price target cut followed Citi’s 27% revision of its 12-month Bitcoin forecast to about $81,800. The $136 price target assumes a 40% contribution from a high Bitcoin price over the next 12 months. The flagship cryptocurrency has been under pressure, tanking to about $61,593 a coin. The research firm has also lowered its adjusted Bitcoin yield estimates for fiscal 2026 and 2027 from 10.4% and 10.5% to 2.6% and 3.5%, respectively.

Strategy Inc. has already issued $1.15 billion in shares, thereby lifting its USD reserve to $2.55 billion from $1.4 billion. The $2.55 billion reserve is expected to cover 17.4 months of dividends.

Strategy Inc. (NASDAQ:MSTR) is a corporate Bitcoin treasury company and enterprise software vendor. It primarily issues debt and equity to accumulate Bitcoin as its core reserve asset while also selling cloud-native, AI-powered business intelligence (BI) software.

6. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)

Year-to-Date Performance: -52.35%

Number of Hedge Fund Holders: 50

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is one of the best beaten-down technology stocks to buy now. On July 2, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) entered into a strategic partnership with Domyn focused on delivering sovereign AI solutions to enterprises across the EMEA region.

Domyn is tasked with supplying an AI infrastructure layer, including large language models, that can be deployed on-premises or in a private cloud configuration. On its part, Cognizant is tasked with handling application integration and adapting Domyn models into smaller, domain-specific models. The company will also have to build industry-specific agents and applications while managing the construction of data pipelines and model alignment for enterprise deployment.

The collaboration and integration seek to target enterprises in the UK, Ireland, Europe, and the Middle East looking to leverage AI solutions. Initially, the companies will target clients in regulated sectors such as financial services and government. Additionally, Cognizant and Domyn will seek to capitalize on a Gartner report indicating that geopolitics will drive 50% of cloud AI workloads to sovereign cloud deployments by 2029.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a global professional services and IT consulting company. It helps businesses modernize their technology, transition to cloud platforms, integrate artificial intelligence (AI), and streamline operations to improve efficiency and customer experiences.

5. Adobe Inc. (NASDAQ:ADBE)

Year-to-Date Performance: -38.49%

Number of Hedge Fund Holders: 86

Adobe Inc. (NASDAQ:ADBE) is one of the best beaten-down technology stocks to buy now. On July 2, HSBC upgraded Adobe Inc. (NASDAQ:ADBE) to a Buy from a Hold and raised the price target to $308 from $282. While the stock has shed nearly 38% in market value year to date, the new price target represents significant upside potential as the stock is trading at about $210.

HSBC upgraded the stock and bumped the price target, buoyed by the company’s resilience against AI-powered competitors. In a research note, the firm insists the market is overestimating the adverse impact of AI-based design tools.

The sentiments come on the heels of the company delivering impressive second-quarter fiscal 2026 results that showed 12.7% revenue growth. Adobe’s guidance of 11.8% full-year revenue growth also underscored underlying growth.

According to HSBC, it has yet to see the material impact of AI competitors on Adobe. Consequently, it has reevaluated the risk associated with the competitive threats in play. The research firm has also reiterated that Adobe’s platform remains sticky due to user familiarity with workflows and embedded AI-powered features.

Adobe Inc. (NASDAQ:ADBE) is a global technology company that builds software for digital creation, document management, and marketing. Their tools are the industry standard for professionals and everyday creators, powering everything from photo and video editing to graphic design and PDF workflows.

4. Palantir Technologies Inc. (NASDAQ:PLTR)

Year-to-Date Performance: -30.45%

Number of Hedge Fund Holders: 96

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best beaten-down technology stocks to buy now. On June 29, Palantir Technologies Inc. (NASDAQ:PLTR) entered into a strategic partnership with Nvidia to deliver an intelligence engine to run the latter’s open models in sovereign environments.

Under the terms of the agreement, Nvidia’s AI platform will be combined with Palantir’s critical infrastructure products, including AIP, Ontology, Foundry, and Apollo. The integrated offerings enable government agencies to train AI on their own data and retain full ownership of the resulting models. The new offering builds on a previously announced Sovereign AI Operating System Reference Architecture.

The integration of Palantir’s infrastructure with Nvidia’s AI and Nemotron models will allow US government agencies to unleash the full power of LLMs while eliminating any security risks. According to Nvidia founder and CEO Jensen Huang, the partnership will give government agencies a secure, customizable, and fully controlled foundation for building mission-critical AI systems.

Palantir Technologies Inc. (NASDAQ:PLTR) builds software platforms—such as Gotham, Foundry, and AIP (Artificial Intelligence Platform)—that act as central operating systems for large-scale data integration and analysis. It helps both government agencies and commercial enterprises synthesize fragmented data, make complex operational decisions, and safely deploy AI models on private networks.

3. Salesforce Inc. (NYSE:CRM)

Year-to-Date Performance: -38.23%

Number of Hedge Fund Holders: 101

Salesforce Inc. (NYSE:CRM) is one of the best beaten-down technology stocks to buy now. On July 1, Guggenheim upgraded Salesforce Inc. (NYSE:CRM) to a Buy from Neutral and set a $228 price target. The new price target implies significant upside potential, as the stock has pulled back about 38% year to date to $163.23 a share.

The stock has come under pressure amid concerns that agentic artificial intelligence will disrupt its traditional Software-as-a-Service business model. While Salesforce is not expected to be a major winner amid AI disruptions, Guggenheim insists the current stock price reflects extreme conditions. For instance, the current stock price implies the stock will decline by 5% in perpetuity, something that the research firm does not agree with.

Guggenheim’s John DiFucci has termed the fatal AI bear case on the software giant as a ‘hallucination’. In the first quarter of fiscal 2027, the company delivered solid financial results, with 13% revenue growth to $11.13 billion and non-GAAP EPS of $3.88, topping consensus estimates of $3.12 a share.

Salesforce Inc. (NYSE:CRM) is a cloud-based software company that provides Customer Relationship Management (CRM) solutions. It offers a centralized platform for businesses to manage sales, customer service, marketing, and e-commerce, while integrating AI agents and unified customer data to build stronger relationships and automate daily workflows.

2. Oracle Corporation (NYSE:ORCL)

Year-to-Date Performance: -25.12%

Number of Hedge Fund Holders: 115

Oracle Corporation (NYSE:ORCL) is one of the best beaten-down technology stocks to buy now. On July 1, Blair added Oracle Corporation (NYSE:ORCL) to its analyst conviction list. According to the research firm, the company has emerged as a major beneficiary of the artificial intelligence buildout as hyperscale cloud commitments continue to drive strong revenue visibility.

Hyperscalers are increasingly signing multiyear cloud capacity commitments, thereby strengthening Oracle’s revenue base. Additionally, full-stack capabilities spanning the OCI cloud and system-of-record applications are increasingly supporting accelerated revenue growth.

Blair insists Oracle is trading at a discount relative to peers in AI infrastructure despite improving fundamentals. Consequently, there is room for upward earnings revisions and multiple expansion to drive shares higher in the second half of the year.

In June, Oracle’s total workforce declined by 13% as the cloud computing giant continued restructuring its business, driven by the adoption of AI across its operations.

Oracle Corporation (NYSE:ORCL) is a massive multinational technology company that builds enterprise software, database systems, and cloud infrastructure used by businesses and governments worldwide. Their technology manages critical backend operations like financial transactions, supply chains, and human resources.

1. Microsoft Corporation (NASDAQ:MSFT)

Year-to-Date Performance: -21.13%

Number of Hedge Fund Holders: 282

Microsoft Corporation (NASDAQ:MSFT) is one of the best beaten-down technology stocks to buy now. On July 1, Business Insider reported that Microsoft Corporation (NASDAQ:MSFT) is poised to cut its workforce by under 2.5%. The cut, which will affect thousands of employees, is part of an effort to control costs.

The cuts will mostly affect personnel in sales and consulting. In addition, the company is targeting cuts at the Xbox gaming division. Microsoft has set a precedent of cutting jobs at the start of a new fiscal year. Last year, it eliminated 6,000 roles in May and an additional 9,000 roles, representing 4% of its total workforce, in July.

The wave of job cuts underscores the tech giant’s bid to lower operating costs as it ramps up spending on artificial intelligence. Additionally, the job cuts have come amid heightened concerns that AI will replace a significant chunk of its software services. The concerns have led the stock to slump about 19% over the past month.

On Monday, the company confirmed that it would cut 4,800 jobs, or ​about 2.1% of its global workforce.

Microsoft Corporation (NASDAQ:MSFT) is a multinational technology company that develops, licenses, and supports a wide range of computer software, devices, and cloud-based solutions. Its core operations include software-as-a-service, cloud computing, and gaming & Hardware.

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