In this article, we will look at the 10 Best Tech Stocks to Buy Under $20.
On July 29, Stuart Kaiser, Citi Head of Equity Trading Strategy, joined CNBC for an interview to discuss the risks and driving factors for the market. He noted that, in the bigger picture, the singular threat to the equity market is the unemployment rate; however, in the near term, the biggest risk is the earnings of big tech names, which are happening this week. He noted that this is because the bar for tech earnings is set very high, the valuations are high, the concentrations are high, and most have had a performance run before the earnings. Moreover, there’s also pressure on tech companies regarding their guidance and capital expenditure.
Kaiser noted that tech earnings, however, are the near-term risk; the greater risk for the market is from the employment data. While talking about the best case for employment data, he noted that he believes repeating last month’s progress would be great, where the unemployment rate stays at around 4%. He believes that the Fed would be comfortable to cut rates in that environment, stating that the inflation rate stays friendly. Kaiser remains optimistic about the equity market, which is backed by good macro conditions and driven by an underlying demand for US equities. He believes that this demand for US equities is primarily due to tech and AI, as investors cannot invest in tech without investing in the US equities. Therefore, the demand is adding incremental upside for the equity market in general.
With that, let’s take a look at the 10 best tech stocks to buy under $20.
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Our Methodology
To curate the list of 10 best tech stocks to buy under $20, we used the Finviz stock screener and CNN as our sources. Using the screener, we aggregated a list of tech stocks trading below $20 and had an upside potential of more than 30%. Next, we used CNN to cross-check the upside potential for each stock. Finally, we ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey’s Q1 2025 database. Please note that the data was recorded on July 28, 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 Tech Stocks to Buy Under $20
10. Applied Digital Corporation (NASDAQ:APLD)
Price: $10.75
Analyst Upside Potential: 30.23%
Number of Hedge Fund Holders: 26
Applied Digital Corporation (NASDAQ:APLD) is one of the Best Tech Stocks to Buy Under $20. On June 2, Applied Digital Corporation (NASDAQ:APLD) announced signing two major lease agreements with CoreWeave Inc. (NASDAQ:CRWV) to supply 250MW of IT power to CoreWeave at its Ellendale, North Dakota, data center.
The lease covers about 15 years and has the potential to bring the company more than $7 billion in revenue over the contract. Moreover, CoreWeave also has the option to use another 150MW in the future, making Ellendale a scalable center for growing AI and HPC needs. The data center is being designed for high-density computing and has the potential to eventually scale up to 1 gigawatt. The first 100MW facility is expected to be ready by the end of 2025, with the 150MW building coming online by mid-2026.
Applied Digital Corporation (NASDAQ:APLD) builds and operates advanced data centers across North America. It supplies digital infrastructure and cloud services for high-performance computing, artificial intelligence, and blockchain applications.
9. Grindr Inc. (NYSE:GRND)
Price: $18.29
Analyst Upside Potential: 42.15%
Number of Hedge Fund Holders: 29
Grindr Inc. (NYSE:GRND) is one of the Best Tech Stocks to Buy Under $20. On June 30, Nicholas Jones CFA from Citizens JMP raised the firm’s price target on Grindr Inc. (NYSE:GRND) from $24 to $27, while keeping an Outperform rating on the stock.
The analyst noted that the company is in a strong position to monetize its large gay social network globally, highlighting the travel and local networks of the company as contributing factors to its worldwide reach. In addition, Jones also noted that Grindr Inc. (NYSE:GRND) has the room to customize its product locally to boost user engagement, thereby he sees the company continuing strong growth while keeping a healthy margin above 40%.
Grindr Inc. (NYSE:GRND) operates Grindr, a global social networking and dating platform primarily serving gay, bisexual, transgender, and queer adults.
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