On June 11, Jason Furman, former CEA Chair & Harvard Professor, joined ‘Closing Bell Overtime’ on CNBC to talk about the state of the US economy, and how he believes economic hard data over the soft data right now. Regarding the economy, Furman observed that the real economy is holding up surprisingly well. While he noted some slowing in labor markets, he attributed this more to slower potential growth coming from reduced immigrant inflow, rather than a demand deficiency that the Fed could address.
Concerning the US-China trade talks, which Commerce Secretary Lutnick indicated are going well but might continue, Furman expresses a critical view. He believes that the administration should have confronted China on trade earlier. He questioned what a win would look like at this stage of negotiations and pointed out that only the US and China are in the room, and China holds a lot of cards due to US reliance on rare earths for its industries. Furman also discussed the potential impact of future rate cuts on the long end of the yield curve and the broader bond market. He does not believe Fed rate cuts would significantly affect the long end, attributing its current state more to issues with the term premium, concerns about risk associated with the US, and future inflation expectations. He supports the Fed’s current patience and believes that neither price data nor jobs data needs immediate action.
That being said, we’re here with a list of the 10 best small cap tech stocks with biggest upside potential.
An investor intently studying a diversified portfolio of stocks & bonds on a digital tablet.
Methodology
We sifted through the Finviz stock screener to compile a list of the top small-cap tech stocks trading between $300 million and $2 billion. We then selected 10 stocks that had a high average upside potential of over 25%. 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, as of Q1 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 With Biggest Upside Potential
10. PagerDuty Inc. (NYSE:PD)
Number of Hedge Fund Holders: 36
Market Capitalization as of June 20: $1.28 billion
Average Upside Potential as of June 20: 29.31%
PagerDuty Inc. (NYSE:PD) is one of the best small cap tech stocks with biggest upside potential. Earlier on June 2, Canaccord lowered its price target for PagerDuty from $23 to $21, while maintaining a Buy rating on the shares. The revision followed PagerDuty’s Q1 2025 performance, which exceeded guidance.
The company reported revenue of $119.8 million. While this number fell short of the initial expectations, it was still an 8% increase year-over-year, due to effective cost management. The company achieved its third consecutive year of non-GAAP profitability in Q1 and recorded 9% annual growth in both revenue and ARR. Canaccord now expects a notable increase in PagerDuty’s growth by 2026.
Enterprise engagement at PagerDuty improved through a shift towards multi-year and multi-product platform partnerships. Multi-product customers now contribute 65% to the company’s total ARR. The introduction of new AI capabilities and a streamlined packaging structure is also expected to improve operations, although the company faces near-term growth pressure as it moves to an enterprise-focused, top-down value selling approach.
PagerDuty Inc. (NYSE:PD) operates a digital operations management platform internationally.
9. Harmonic Inc. (NASDAQ:HLIT)
Number of Hedge Fund Holders: 35
Market Capitalization as of June 20: $1.00 billion
Average Upside Potential as of June 20: 29.50%
Harmonic Inc. (NASDAQ:HLIT) is one of the best small cap tech stocks with biggest upside potential. Earlier on June 2, Harmonic announced that Vectra has chosen Harmonic’s cOS virtualized broadband platform. The collaboration aims to accelerate Vectra’s expansion of multigigabit broadband services, facilitate selective migration to deep fiber infrastructure, and support new wholesale fiber and DOCSIS offerings.
The deployment marks the world’s first implementation of Harmonic’s PTP-less capability for distributed access architecture/DAA for enhanced reliability, simplified operations, and reduced costs. Vectra will integrate Harmonic’s cOS platform with Reef Remote PHY (R-PHY) Shelves, Oyster DAA nodes, and various remote OLT devices.
Vectra will also utilize Harmonic’s newly launched SeaStar Optical Node to deliver fiber connectivity to lower-density brownfield multi-dwelling units (MDUs) by using existing in-building coax wiring. The adoption of a PTP-less Virtualized Core will streamline overall network operations. The cOS platform will also enable Vectra to selectively migrate from DOCSIS to PON and deliver high-speed fiber connectivity to targeted areas using existing infrastructure, thereby reducing capital expenses.
Harmonic Inc. (NASDAQ:HLIT) provides broadband access solutions worldwide and operates through its Broadband and Video segments. Vectra is a major internet provider in Poland.
8. Sabre Corporation (NASDAQ:SABR)
Number of Hedge Fund Holders: 32
Market Capitalization as of June 20: $1.02 billion
Average Upside Potential as of June 20: 33.08%
Sabre Corporation (NASDAQ:SABR) is one of the best small cap tech stocks with biggest upside potential. On June 16, Sabre Hospitality announced advancements to its SynXis Concierge.AI, which integrates advanced AI capabilities into the SynXis Booking Engine. The enhancement aims to improve the guest experience while driving conversions through immediate, intelligent responses across various communication channels, such as hotel websites, emails, social media platforms, and voice interactions.
The SynXis Concierge.AI operates from a unified inbox and offers powerful insights that help boost conversions, increase website engagement, and streamline hotel operations. Early adopter testing of the new SynXis Concierge.AI functionality within the SynXis Booking Engine began in June, with self-service capabilities via the Community Portal becoming available to customers in July. Hotels can configure the solution at the chain, brand, or individual property level to ensure consistency and control.
The updated SynXis Concierge.AI offers several key features, such as the ‘Booking Agent,’ which is an AI-powered chatbot embedded directly into the SynXis Booking Engine. The chatbot can communicate in 50+ languages and delivers personalized responses, which can reduce booking abandonment rates and secure direct bookings that might otherwise be lost to online travel agencies (OTAs).
Sabre Corporation (NASDAQ:SABR) is a software and technology company for the travel industry internationally. It operates in two segments: Travel Solutions and Hospitality Solutions.
7. BigCommerce Holdings Inc. (NASDAQ:BIGC)
Number of Hedge Fund Holders: 27
Market Capitalization as of June 20: $386.87 million
Average Upside Potential as of June 20: 44.93%
BigCommerce Holdings Inc. (NASDAQ:BIGC) is one of the best small cap tech stocks with biggest upside potential. On June 11, BigCommerce announced that it has received a 2025 Top Rated Award from TrustRadius. The recognition highlights BigCommerce as a leader among e-commerce platforms, based entirely on positive customer sentiment and feedback.
BigCommerce achieved a TRScore of 7.8 out of 10 and amassed over 450 reviews, which solidified its position as a top player in the e-commerce category according to its users. The Senior Vice President of Global Services at BigCommerce, Ryan Means, particularly expressed that the award is gratifying because it directly reflects the value customers derive from both the platform and the company’s customer success services.
Since 2016, the TrustRadius Top Rated Awards have been recognized as the B2B industry standard for unbiased acknowledgment of excellent technology products. The awards are based solely on customer feedback and ensure that they are not influenced by analyst opinions or a company’s status as a TrustRadius customer. BigCommerce is proud to develop products that elicit such positive feedback from its user community.
BigCommerce Holdings Inc. (NASDAQ:BIGC) is a SaaS ecommerce platform for brands and retailers in the US, North and South America, Europe, the Middle East, Africa, and the Asia Pacific.
6. ACM Research Inc. (NASDAQ:ACMR)
Number of Hedge Fund Holders: 32
Market Capitalization as of June 20: $1.56 billion
Average Upside Potential as of June 20: 46.19%
ACM Research Inc. (NASDAQ:ACMR) is one of the best small cap tech stocks with biggest upside potential. On June 10, ACM Research announced the availability of the English version of its 2024 Environmental, Social, and Governance/ESG report. The report was prepared by its principal operating subsidiary called ACM Research (Shanghai) Inc. The English version is accessible on ACM’s website under the ESG Reports section, while the original Chinese version was published in February 2025.
In 2024, ACM recorded key ESG metrics to establish a baseline for future greenhouse gas/GHG emissions targets and set a company target to achieve a 75% pure water purification rate by 2030. Under circular economy initiatives, the company recycled 2,800 kg of plastic crates and 1,200 kg of wooden crates in 2024. Additionally, an ESG risk screening system for suppliers is currently under development, with a planned launch in 2025. ACM also maintained its ISO 14001 and ISO 9001 certifications across key facilities.
The report also emphasized the environmental and cost benefits of ACM’s innovative tools, such as the Ultra C Tahoe hybrid cleaning tool that offers enhanced cleaning performance with up to a 75% reduction in chemical consumption. Similarly, ACM’s Frame Wafer cleaning tool is used in the post-debonding cleaning process and features an innovative solvent recovery system that achieves ~100% solvent recovery and filtration efficiency.
ACM Research Inc. (NASDAQ:ACMR) develops, manufactures, and sells capital equipment worldwide.
5. Blend Labs Inc. (NYSE:BLND)
Number of Hedge Fund Holders: 33
Market Capitalization as of June 20: $822.10 million
Average Upside Potential as of June 20: 54.09%
Blend Labs Inc. (NYSE:BLND) is one of the best small cap tech stocks with biggest upside potential. On June 16, PHH Mortgage announced an expanded partnership with Blend Labs. The collaboration aims to deliver faster and more seamless refinance and home equity experiences for borrowers by using Blend’s technology platform. PHH Mortgage is extending its use of Blend’s technology, which already powers its mortgage lending operations, to now include Blend’s Rapid Refi and Rapid Home Equity solutions.
The move is part of PHH’s ongoing digital transformation to meet evolving borrower expectations and deepen relationships throughout the homeownership journey. The Senior Vice President of Consumer Lending at PHH Mortgage, Colin Friday, highlighted that today, with fluctuating interest rates, many homeowners are seeking ways to improve their financial position through refinancing or utilizing home equity. Blend’s Rapid Home Lending suite enables PHH to provide a fast and intuitive experience.
The Rapid suite of solutions is built on Blend’s digital banking platform and will help PHH streamline operations and prepare for future lending demand. The partnership will enable PHH to increase automation by using deep data connectivity to pre-fill borrower information and eliminate manual steps. It will also improve ease of use for borrowers by presenting personalized, pre-qualified offers upfront, ensuring customers clearly understand their options.
Blend Labs Inc. (NYSE:BLND) provides a cloud-based software platform for financial services firms in the US. It operates in two segments: Blend Platform and Title. PHH Mortgage is a major US mortgage servicer and a subsidiary of Onity Group Inc. (NYSE:ONIT).
4. ADTRAN Holdings Inc. (NASDAQ:ADTN)
Number of Hedge Fund Holders: 28
Market Capitalization as of June 20: $631.46 million
Average Upside Potential as of June 20: 58.43%
ADTRAN Holdings Inc. (NASDAQ:ADTN) is one of the best small cap tech stocks with biggest upside potential. Earlier on June 2, Adtran announced the expansion of its Oscilloquartz optical cesium portfolio with the introduction of the new OSA 3200 SP and OSA 3250 ePRC atomic clocks. The additions aim to make precision timing more accessible across a range of network environments by offering lower-cost optical pumping cesium technology.
The new OSA 3200 SP and OSA 3250 ePRC models use advanced optical pumping technology, which provides several advantages over traditional magnetic cesium clocks. The benefits include improved holdover capabilities, simplified maintenance, and a typical service life of 10 years, which is 2 years longer than typical magnetic ePRC clocks. By building on the same proven platform as Adtran’s high-end cesium models (OSA 3300 and 3350), the solutions enable telecom operators, data centers, power utilities, and defense networks to modernize their synchronization infrastructure while reducing operational complexity and cost.
As the sole vendor offering optical pumping cesium solutions, Adtran is uniquely positioned to support customers facing supply chain risks and escalating performance demands. These lower-cost solutions enable more operators to benefit from the accuracy, longevity, and modern manageability required for resilient and secure critical timing infrastructure.
ADTRAN Holdings Inc. (NASDAQ:ADTN) provides networking and communications platforms, software, systems, and services in the US, Germany, the UK, and internationally.
3. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 36
Market Capitalization as of June 20: $1.42 billion
Average Upside Potential as of June 20: 60.51%
Sunrun Inc. (NASDAQ:RUN) is one of the best small cap tech stocks with biggest upside potential. On June 18, RBC Capital Markets downgraded Sunrun from Outperform to Sector Perform and halved its price target from $12 to $5. The adjustment was prompted by concerns over a recent US Senate proposal that signals the potential elimination of Section 25D residential solar leasing tax credits.
While the proposed Senate reconciliation bill preserves tax credits for battery storage, which accounts for ~70% of Sunrun’s installations, the solar portion of these systems, which represents less than 30% of the installation value, would no longer qualify for subsidies. RBC analysts believe that without these subsidies, Sunrun’s offerings may struggle to compete with conventional utilities across most US regions.
This competitive disadvantage could only be mitigated by declines in interest rates or system costs, or increases in utility prices. RBC also highlighted the elevated soft costs in the US solar market, including high sales and marketing expenses, permitting fees, and overheads. Still, the company was able to generate $56 million in cash in Q1 2025, which marked its 4th consecutive quarter of positive cash generation.
Sunrun Inc. (NASDAQ:RUN) designs, develops, installs, sells, owns, and maintains residential solar energy systems in the US.
2. PROS Holdings Inc. (NYSE:PROS)
Number of Hedge Fund Holders: 28
Market Capitalization as of June 20: $668.98 million
Average Upside Potential as of June 20: 78.83%
PROS Holdings Inc. (NYSE:PROS) is one of the best small cap tech stocks with biggest upside potential. On June 17, PROS Holdings announced that it had been named a winner of the 2025 CSO Awards, which marked the second consecutive year PROS has received this prestigious industry distinction. The distinction recognizes organizations for security projects and initiatives that show outstanding business value and thought leadership in cybersecurity.
The award acknowledges PROS’s leadership in cybersecurity excellence, which includes its enterprise-grade cloud security, advanced threat detection capabilities, and robust global governance practices. PROS is committed to protecting the integrity, availability, and confidentiality of data.
The Content Director of the CSO Conference & Awards, Beth Kormanik, highlighted the rapidly expanding scope and complexity of cybersecurity responsibilities, particularly in the face of emerging AI-driven threats. She praised this year’s CSO Award winners, including PROS, for exemplifying how modern security leaders are directly addressing these challenges.
PROS Holdings Inc. (NYSE:PROS) provides software solutions that optimize the processes of selling and shopping in the digital economy in Europe, the Asia Pacific, the Middle East, Africa, and internationally.
1. PowerFleet Inc. (NASDAQ:AIOT)
Number of Hedge Fund Holders: 24
Market Capitalization as of June 20: $601.59 million
Average Upside Potential as of June 20: 98.24%
PowerFleet Inc. (NASDAQ:AIOT) is one of the best small cap tech stocks with biggest upside potential. On June 16, Powerfleet announced an expanded partnership with EverDriven Technologies. EverDriven is increasing its deployment of Powerfleet’s advanced AI video safety solution to enhance student transportation across 34 states.
EverDriven currently has a network of 9,000+ drivers completing more than 2 million trips annually. Due to strong interest from its school district partners, EverDriven will scale its relationship with Powerfleet to ~4,000 subscribers. The CEO of Powerfleet, Steve Towe, highlighted that this growing partnership signifies increasing demand for Powerfleet Unity’s AI-powered safety solutions in North America, which is a top priority market for the company.
The CEO of EverDriven, Mitch Bowling, stated that implementing AI video technology represents an advancement in the company’s safety protocols. Powerfleet Unity’s AI video technology uses ML and computer vision to detect critical events, assess driving behavior, and facilitate real-time interventions.
PowerFleet Inc. (NASDAQ:AIOT) provides Internet-of-Things solutions in the US, Israel, and internationally. EverDriven is a prominent provider of alternative student transportation across the US.
While we acknowledge the potential of AIOT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AIOT and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None.
