In this article, we will look at the 10 Best Small Cap Tech Stocks to Buy Right Now.
On August 29, Craig Johnson, Chief Market Technician at Piper Sandler, joined CNBC Television to discuss his bull case for small and mid-cap stocks, as he believes opportunities lie within these sectors. He also believes that these sectors have the potential to push markets to new highs by the end of the year.
Johnson noted that small and mid-caps have shown strong gains since the market lows. In contrast, the “Mag 7” stocks have been mostly slow and stagnant for the past 6 to 9 months, to the point that analysts have started calling these stocks the “Lag Seven.” The chief market technician of Piper Sandler noted that the Russell 2000 index, which is the key benchmark for small caps, is forming an inverted head and shoulders chart pattern. He highlights that this technical setup is a classic indicator of a potential big rally. Moreover, the index has recently broken above the neckline, signaling a possible move towards new all-time highs, which Johnsosn believes would be somewhere between 2450 and 2600.
In addition, the current market setup, which points towards the Federal Reserve cutting rates soon, would also further boost small and mid-cap stocks. He believes that this would be the major catalyst helping the sector outperform.
While Johnson is not bearish on large caps, he sees more growth potential in smaller stocks, as these are the best investment opportunity for those wanting the fastest gains. With that, let’s take a look at the 10 best small cap tech stocks to buy right now.
Our Methodology
To curate the list of 10 best small cap tech stocks to buy right now, we used the Finviz stock screener, CNN, and Insider Monkey’s Q2 2025 hedge funds database. Using the screener, we aggregated a list of small-cap stocks (Market Cap between $300 million and $2 billion) with analysts’ target price pointing to more than 35% upside in the next 12 months. Lastly, we cross-checked the upside potential from CNN and ranked the stocks in ascending order of the number of Hedge fund holders. Please note that the data was recorded on September 1, 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Small Cap Tech Stocks To Buy Right Now
10. Innodata Inc. (NASDAQ:INOD)
Market Capitalization: $1.209 billion
Analyst Upside Potential: 76.41%
Number of Hedge Fund Holders: 16
Innodata Inc. (NASDAQ:INOD) is one of the Best Small Cap Tech Stocks To Buy Right Now. Wall Street is bullish on the stock despite the share price falling more than 30% since its Q2 2025 report. The share of Innodata Inc. (NASDAQ:INOD) is falling despite the company posting above-expectation results during the second quarter. The company posted a revenue of $58.39 million, up 79.38% and ahead of expectations by $2.04 million. The EPS of $0.20 also exceeded consensus by $0.09.
Several analysts have given bullish ratings on the stock. On August 1, Hamed Khorsand from BWS Financial maintained a Buy rating on Innodata Inc. (NASDAQ:INOD) with a price target of $74. The analyst noted that the market has been concerned about reduced spending from the company’s top customers, which form a substantial part of its revenue. However, despite these concerns, the company topped Wall Street estimates.
Khorsand also pointed out the rising AI investments, which help Innodata Inc. (NASDAQ:INOD) leverage its ties with big tech clients. He believes this could lead to more revenue growth. Moreover, later on August 2, Allen Klee from Maxim Group also reiterated a Buy rating on Innodata Inc. (NASDAQ:INOD) with a price target of $75. He noted that while there are concerns regarding the sustainability of the company’s big client revenues, management remains confident as they raised the FY2025 guidance during the second quarter.
Innodata Inc. (NASDAQ:INOD) is a global data engineering company that supports AI development by preparing and annotating training data and deploying AI models.
9. Aeva Technologies, Inc. (NASDAQ:AEVA)
Market Capitalization: $833.932 million
Analyst Upside Potential: 68.86%
Number of Hedge Fund Holders: 19
Aeva Technologies, Inc. (NASDAQ:AEVA) is one of the Best Small Cap Tech Stocks To Buy Right Now. On August 12, Aeva Technologies, Inc. (NASDAQ:AEVA) launched a new high-performance 4D LiDAR sensor designed for smart infrastructure and security, called the Atlas Orion. The sensor is built to meet tough outdoor standards and provides long-range detection and durability.
Management noted that it is a single-box design that uses Power over Ethernet and simplifies installation and cuts costs. The sensor can detect vehicles up to 500 meters and vulnerable road users like pedestrians up to 200 meters. It also covers a wide 120-degree field of view with fine resolution, allowing full intersection coverage with only two sensors.
After the press release on August 18, Joseph Moore from Morgan Stanley reiterated a Hold rating on Aeva Technologies, Inc. (NASDAQ:AEVA) with a price target of $19. The analyst acknowledged the progress of the company with its competitive LiDAR technology, especially its unique Frequency Modulated Continuous Wave platform. He noted that the company is nearing a commercial inflection point, supported by significant investments in R&D and integration of software and hardware components.
However, despite this, the analyst maintained a cautious rating due to the competitive pressures in the market, particularly from low-cost Chinese competitors. Moore noted that this competition has the potential to bring the prices down, thereby impacting the company’s pricing power and profitability.
Aeva Technologies, Inc. (NASDAQ:AEVA) designs and manufactures advanced LiDAR sensing systems and perception software. Its technology uses frequency-modulated continuous waves to measure both velocity and distance simultaneously.
Hedge Fund Resource Center