In this article, we will take a look at the best high-return technology stocks to buy now.

Technology stocks have long been the driving force behind some of the market’s wealth-creation stories. From IT services and software to semiconductors and consumer electronics, the technology sector continues to shape how the markets work. Even amid a challenging macro landscape, leading technology companies remain committed to innovation, growth, and profitability.

Regarding the excitement around semiconductors and AI infrastructure, CNBC’s Jim Cramer said on May 8 that the stocks are driving the market higher. Cramer highlighted that next week will reveal whether investors will continue to reward every positive AI-powered development.

The publication, titled “Jim Cramer says ‘it’s not too late’ to own AI winners powering the market,” outlined that both the Nasdaq Composite and S&P 500 achieved new intraday highs and closed at record levels on Friday. AI names mainly drove this win.

What’s interesting is that the technology sector stood out as the top-performing sector within the S&P 500. While the overall index was up only 2.3%, the technology sector surged 7%. Although Cramer expressed caution against overreliance on the data center complex, he believes the group represents a long-term shift.

Keeping this view in mind, we have compiled a list of the best high-return technology stocks to buy now.

Our Methodology

For this article, we began by filtering for Technology sector stocks with market capitalizations exceeding $1 billion. Next, we shortlisted stocks with at least 50% upside potential, and based on the number of hedge funds holding positions in these stocks. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks were then ranked according to their upside potential.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10. Elastic N.V. (NYSE:ESTC)

Upside Potential as of May 8, 2026: 50.43%

Number of Hedge Fund Holders: 55

On April 23, Rothschild Redburn started coverage on Elastic N.V. (NYSE:ESTC) with a Neutral rating and a $49 price target. The firm is among the 63% of analysts bullish on the stock, with the remaining 38% Neutral. The one-year median price target of $78 reflects approximately 50% upside potential.

While acknowledging the unpredictability of Elastic N.V. (NYSE:ESTC)’s growth story and past execution record, given its shift to a sales-led model, Rothschild Redburn also warned about the company’s market positioning and platform scale.

For a more optimistic stance, the firm would require clearer communication around the company’s market positioning and growth narrative, along with strengthened execution and headcount productivity. The company’s long-term fundamentals are backed by the large enterprise opportunity and sustained platform adoption across its clientele, making it one of the best high-return technology stocks to buy now. Although Elastic N.V. (NYSE:ESTC) has underperformed the S&P 500 in the past, it has a strong quarterly revenue growth (yoy) of 17.70%.

Elastic N.V. (NYSE:ESTC) is a Netherlands-based AI company that provides software platforms for use across a range of environments. Incorporated in 2012, the company mainly offers Elastic’s Search AI Platform, Elastic Search product, and Elastic Observability.

9. ServiceNow, Inc. (NYSE:NOW)

Upside Potential as of May 8, 2026: 53.28%

Number of Hedge Fund Holders: 118

On May 6, BMO Capital reaffirmed an Outperform rating and a price target of $115 on ServiceNow, Inc. (NYSE:NOW). According to the firm, the company’s platform is defensive due to the following three factors: autonomous execution, governance, and context. The firm believes the long-term revenue outlook may not significantly improve the investor sentiment in the times ahead. Although near-term risks exist, the firm remains positive on the company.

On the same day, Bernstein SocGen Group lifted the price target on ServiceNow, Inc. (NYSE:NOW) to $236 from $226 and reiterated a Market Perform rating. The price rise came after the company’s Analyst Day, where it highlighted plans to increase its Rule of 40 metric to more than 60 from the current 56.

Additionally, ServiceNow, Inc. (NYSE:NOW) projects 2030 subscription revenue of $30 billion, relative to the guidance of nearly $15.75 billion for FY26. Despite underperforming the S&P 500 in terms of returns, the company has quarterly revenue growth (YoY) of 22.10%, making it one of the best high-return technology stocks to buy now. Peter Weed, an analyst at Bernstein SocGen, said that the Analyst Day “added a bullish tailwind” but also “fed the bears who believe any level of deceleration is intolerable.”

ServiceNow, Inc. (NYSE:NOW) is a California-based provider of cloud-based solutions for digital workflows. Incorporated in 2004, the company delivers a diverse range of products, including asset management, customer service management, field service management applications, and source-to-pay operations.