Doug Clinton, the founder and CEO of Intelligent Alpha, joined a discussion on CNBC’s ‘Squawk Box’ on February 12 regarding the state of the tech sector, AI tech race, how heavy AI investments and tariff uncertainty have affected mega-cap tech stocks over the past month. When asked to rate how bad it has been on a scale of 1 to 10, Clinton replied that about 2.5 weeks ago, during what he called “Deep Tech Monday,” it was probably around an 8.5 or 9 due to significant pressure. However, since then, things have calmed down following the earnings reports from hyperscalers like Google and statements from industry leaders such as Sam Altman indicating that the capital expenditure boom in AI will continue.
Clinton emphasized that while they remain bullish on tech overall, not all companies are equally leveraged to AI. For instance, Meta is highly exposed due to its leadership in open-source AI with models like Llama. Google and NVIDIA are also heavily tied to AI advancements. On the other hand, Amazon and Apple might have less exposure compared to other hyperscalers. Interestingly, the iPhone maker recently made a deal with Alibaba to integrate their AI models onto iPhones in China. Regarding tariffs and trade tensions with China, Clinton suggested that while these issues should be monitored for hyperscalers who have significant chip production exposure, he does not believe they will be overly impacted by tariffs due to their limited involvement in import/export activities directly affected by tariffs. Instead of focusing heavily on tariff risks at this point, he believes it’s more important for investors to track how well these companies’ AI products evolve and how customers adopt them.
He also expressed skepticism about a protracted trade war with China under Trump’s negotiation tactics. He noted similarities with recent negotiations involving Canada and Mexico where border policies were adjusted without prolonged conflict over tariffs. While acknowledging potential impacts if tensions escalate significantly, particularly affecting chip producers, Clinton does not foresee this as an immediate concern within the next year. If China were involved in a protracted trade war with the US, it could be very bad for some companies. However, Clinton doesn’t think this scenario is likely because Trump often seeks quick negotiating wins rather than prolonged conflicts.
With this stance being acknowledged, we’re here with a list of the 10 best cheap technology stocks to buy according to analysts amidst Clinton’s bullish sentiment on the sector.
Source: pixabay
Methodology
We used a stock screener to compile a list of tech stocks with a forward P/E ratio of under 15. We then selected 10 stocks that had high average upside potential (over 30%) and were the most popular among elite hedge funds. The stocks are ranked in ascending order of their average upside potential. We’ve also added the hedge fund sentiment for each stock which was sourced from Insider Monkey’s database.
Note: All data is sourced as of February 13.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Cheap Technology Stocks To Buy According to Analysts
10. Seagate Technology Holdings (NASDAQ:STX)
Forward P/E Ratio: 13.74
Average Upside Potential: 31.04%
Number of Hedge Fund Holders: 46
Seagate Technology Holdings (NASDAQ:STX) provides data storage solutions and offers a range of mass-capacity products. These include HDDs, SSDs, and enterprise systems, alongside edge-to-cloud infrastructure solutions via its Lyve platform. The company serves OEMs, distributors, and retailers globally, and caters to diverse storage needs from enterprise to consumer.
Its cloud business is booming due to the massive demand for near-line storage products. Revenue from this segment nearly doubled in FQ2 2025 year-over-year and grew by almost 60% for all of 2024. This growth is tied to increased spending by cloud providers, who are investing heavily in infrastructure to support the growing demand for traditional services and emerging AI applications.
A lot of cloud-driven growth is fueled by the company’s advanced HAMR-based Mozaic platform, which delivers high-capacity drives to major customers. This technology is essential for managing AI’s data explosion, with HDDs storing training datasets and offering cost and environmental benefits. Seagate Technology Holdings (NASDAQ:STX) cloud focus promises future growth.
Following FQ2 results, Benchmark’s analyst Mark Miller upgraded Seagate Technology Holdings (NASDAQ:STX) to Buy with a $120 price target on January 22. Despite potential supply constraints in the March quarter, the sustained cloud demand and AI segment growth are expected to drive performance in H2 FY25 and FY26.
9. Euronet Worldwide Inc. (NASDAQ:EEFT)
Forward P/E Ratio: 9.93
Average Upside Potential: 32.39%
Number of Hedge Fund Holders: 33
Euronet Worldwide Inc. (NASDAQ:EEFT) delivers payment and transaction processing solutions globally. It operates across EFT (Electronic Funds Transfer) Processing, epay, and Money Transfer segments. It provides services ranging from ATM and POS solutions, prepaid mobile top-up and distribution, to consumer money transfer and related financial services. It serves financial institutions, retailers, and consumers.
The company’s EFT segment drove its record Q3 2024 results, delivering double-digit constant currency operating income and adjusted EBITDA growth. This was fueled by a recovery in European travel, with tourism reaching 96% of pre-pandemic levels, which was up 6% year-over-year. Merchant services expanded by adding 4,600+ new merchants. New markets like Albania, Belgium, Mexico, Egypt, the Philippines, and Morocco contributed to growth.
The addition of domestic and international access fees at existing ATMs also enhanced EFT’s profitability. The company emphasized the success of its Ren payment platform and cited a 10-year extension with the Bank of Mozambique and SIMO, where daily transaction volumes have doubled year-over-year. This platform specializes in mission-critical transaction processing and innovative experiences in core switching, issuing, payments hub implementations, and ATM management.