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.
A technical analyst using a cloud-based analytics dashboard for financial services.
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.
8. PagSeguro Digital Ltd. (NYSE:PAGS)
Price: $8.16
Analyst Upside Potential: 42.17%
Number of Hedge Fund Holders: 29
PagSeguro Digital Ltd. (NYSE:PAGS) is one of the Best Tech Stocks to Buy Under $20. On July 2, Grupo Santander analyst Henrique Navarro raised the firm’s price target on PagSeguro Digital Ltd. (NYSE:PAGS) from $7.50 to $13, while also upgrading the rating from Neutral to Outperform.
The rating and price target upgrade come as the company is approaching its fiscal second quarter of 2025. PagSeguro Digital Ltd. (NYSE:PAGS) is set to hold its second-quarter earnings call on August 13, 2025. The company delivered robust growth with revenue for the quarter growing 12.6% year-over-year to reach R$4.85 billion. Notably, the net income also grew 8.9% to reach R$525 million. Management noted that the growth was driven by higher TPV and increasing contribution from its banking segment.
Moreover, the first quarter was historic as PagSeguro Digital Ltd. (NYSE:PAGS) announced its first dividend payment as the Board of Directors approved a cash dividend of $0.14 per common stock.
PagSeguro Digital Ltd. (NYSE:PAGS) is a Brazilian financial technology company that provides an integrated digital banking and payment ecosystem.
7. Cellebrite DI Ltd. (NASDAQ:CLBT)
Price: $14.32
Analyst Upside Potential: 67.60%
Number of Hedge Fund Holders: 30
Cellebrite DI Ltd. (NASDAQ:CLBT) is one of the Best Tech Stocks to Buy Under $20. On July 23, Cellebrite DI Ltd. (NASDAQ:CLBT) announced a major development in its venture to offer secure cloud services to the US federal agencies. The company announced that the US Department of Justice will act as an official sponsor as it seeks the FedRAMP High authorization for its Government Cloud platform.
Earlier this year, Cellebrite DI Ltd. (NASDAQ:CLBT) underwent an independent review and received a FedRAMP High Ready status. Now, with the US Department of Justice as its sponsor, the company moves to the next phase, bringing it closer to getting complete authorization. The company’s government cloud services will provide new digital tools for federal agencies, offering them secure access to the company’s key solutions, including Inseyets for advanced digital forensics, and Guardian for digital evidence review, sharing, and storage.
Cellebrite DI Ltd. (NASDAQ:CLBT) is a software company that provides a Digital Intelligence platform for legally authorized investigations.
6. Aurora Innovation, Inc. (NASDAQ:AUR)
Price: $6.42
Analyst Upside Potential: 86.92%
Number of Hedge Fund Holders: 33
Aurora Innovation, Inc. (NASDAQ:AUR) is one of the Best Tech Stocks to Buy Under $20. On July 9, Aurora Innovation, Inc. (NASDAQ:AUR) announced its fiscal second quarter 2025 earnings release date. The company will hold its earnings call on July 30, 2025.
The company released important updates during the fiscal first quarter of 2025, noting that it has closed all remaining software and vehicle claims, achieving ARM 100%, meaning that its AI for driverless operations has been validated and approved. Management noted that two driverless trucks run daily between Dallas and Houston, highlighting that they have completed over 4,000 fully driverless miles. The company expects more customers to join in the coming months, with tens of trucks on the road by the end of 2025.
Management of Aurora Innovation, Inc. (NASDAQ:AUR) noted that although they started recognizing pilot revenue in Q1, they have only started recognizing broader revenue linked to their commercial driverless operations starting Q2 2025. This revenue will be available as the company reports its second-quarter results. The company ended the fiscal first quarter with $1.2 billion in cash and short-term investments, and management expects this gives the company a smooth runway to fund operations through Q4 2026.
Aurora Innovation, Inc. (NASDAQ:AUR) is a tech company that develops the Aurora Driver, an advanced self-driving system designed to operate various vehicle types.
5. Full Truck Alliance Co., Ltd. (NYSE:YMM)
Price: $11.43
Analyst Upside Potential: 31.91%
Number of Hedge Fund Holders: 40
Full Truck Alliance Co., Ltd. (NYSE:YMM) is one of the Best Tech Stocks to Buy Under $20. On May 20, Brian Gong from Citi maintained a Buy rating on Full Truck Alliance Co., Ltd. (NYSE:YMM) with a price target of $16.
The analyst noted his bullish sentiment is based on the strong performance and smart strategies of the company. Full Truck Alliance Co., Ltd. (NYSE:YMM) has seen solid growth in order volume, driven by improved adjustments that make shippers and truckers engage more with the platform. While Gong expects the order volume to grow faster in the future, he also highlighted challenges arising from less-than-truckload orders. Moreover, the analyst highlighted that the company is making strategic investments, which might hurt the margins in the short run but will help the company achieve meaningful growth in the long term.
Full Truck Alliance is a digital platform that connects shippers and truck drivers. The company uses advanced technologies, including cloud computing, big data, and AI, to help shippers find trucks and drivers find goods easily.
4. Zeta Global Holdings Corp. (NYSE:ZETA)
Price: $16.04
Analyst Upside Potential: 55.86%
Number of Hedge Fund Holders: 40
Zeta Global Holdings Corp. (NYSE:ZETA) is one of the Best Tech Stocks to Buy Under $20. On July 14, Terry Tillman from Truist Financial maintained a Buy rating on Zeta Global Holdings Corp. (NYSE:ZETA) without disclosing a price target.
The bullish sentiment comes as the company approaches its fiscal second-quarter earnings call for 2025. The earnings call is scheduled for August 5, 2025. During the fiscal first quarter of 2025, Zeta Global Holdings Corp. (NYSE:ZETA) delivered $264.42 million in revenue, reflecting a 35.64% year-over-year increase and ahead of consensus by $10.52 million. Management attributed this growth to a 19% growth in scaled customer count.
Looking ahead, Zeta Global Holdings Corp. (NYSE:ZETA) also raised its second-quarter 2025 guidance from a midpoint of $295 million to a range of $295 million to $298 million.
Zeta Global Holdings Corp. (NYSE:ZETA) is a tech company that offers a cloud-based platform that helps businesses use consumer data to personalize marketing campaigns.
3. Freshworks Inc. (NASDAQ:FRSH)
Price: $14.19
Analyst Upside Potential: 33.90%
Number of Hedge Fund Holders: 41
Freshworks Inc. (NASDAQ:FRSH) is one of the Best Tech Stocks to Buy Under $20. On July 22, Freshworks Inc. (NASDAQ:FRSH) announced that it has become the official partner of the McLaren Formula 1 Team after signing a multi-year partnership with McLaren Racing.
As part of this agreement, McLaren has started using the company’s IT services management tools called FreshService, which is an AI-powered solution. These services will allow McLaren to handle IT service requests more efficiently, especially during the intense race season when the team is working from different locations worldwide.
The main goal of this partnership is to simplify and speed up IT services for McLaren. Moreover, Freshworks Inc.’s (NASDAQ:FRSH) brand will appear on McLaren’s cars and team kits starting with the Belgian Grand Prix and throughout the season and beyond.
Freshworks Inc. (NASDAQ:FRSH) provides cloud-based, AI-powered software solutions that improve customer and employee experiences.
2. Alight, Inc. (NYSE:ALIT)
Price: $5.76
Analyst Upside Potential: 64.93%
Number of Hedge Fund Holders: 41
Alight, Inc. (NYSE:ALIT) is one of the Best Tech Stocks to Buy Under $20. On June 20, Kyle Peterson from Needham reiterated a Buy rating on Alight, Inc. (NYSE:ALIT) with a price target of $8.
The positive sentiment comes after the analyst met the company’s top management, including the CFO and CEO. He noted that the top management showed their strong commitment to improve client relationships and is also working with third-party evaluators. Peterson also highlighted growth opportunities, noting that Alight, Inc. (NYSE:ALIT) has the potential in leave management services. The company plans to use Generative AI to increase operational efficiency, which the analyst believes can boost future profits.
Alight, Inc. (NYSE:ALIT) provides cloud-based human capital management solutions to organizations.
1. Remitly Global, Inc. (NASDAQ:RELY)
Price: $16.98
Analyst Upside Potential: 59.01%
Number of Hedge Fund Holders: 46
Remitly Global, Inc. (NASDAQ:RELY) is one of the Best Tech Stocks to Buy Under $20. On July 17, J.P. Morgan analyst Tien Tsin Huang maintained a Buy rating on Remitly Global, Inc. (NASDAQ:RELY) with a price target of $25.
The positive sentiment comes as the company approaches its fiscal second-quarter earnings call for 2025. The company is expected to release its second-quarter results on August 6. Remitly Global, Inc. (NASDAQ:RELY) beat expectations during the fiscal first quarter 2025 results. It delivered $361.62 million in revenue, reflecting a 34.37% increase year-over-year and ahead of consensus by $14.15 million. Moreover, the EPS of $0.19 also exceeded expectations by $0.02. Management noted that the outperformance was driven by a 29% increase in active customers.
Looking ahead, Remitly Global, Inc. (NASDAQ:RELY) expects second-quarter revenue in the range of $383 million to $385 million, reflecting a 25% to 26% year-over-year growth.
Remitly Global, Inc. (NASDAQ:RELY) provides digital financial services for sending money across borders in over 170 countries.
While we acknowledge the potential of RELY 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 RELY and that has 100x upside potential, check out our report about this cheapest AI stock.
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