On Friday, US stocks recovered strongly in the afternoon to reach new record highs despite renewed trade tensions.
The S&P 500 ended the session at an all-time high for the first time since February. This rise was driven by optimism over a trade truce between the US and China and hopes of a rate cut by the Federal Reserve.
The tech-heavy Nasdaq Composite also hit a record high while the Dow Jones Industrial Average rose by 1%.
Earlier in the day, stocks temporarily took a dramatic turn after President Trump announced on social media that he was terminating all trade talks with Canada immediately. He blamed Canada’s digital services tax and said he would impose a new tariff rate on Canadian goods within a week.
However, the market had been boosted by Trump’s announcement that the US and China had signed a trade deal. This reaffirmed a tariff truce agreed last month in Geneva. According to several media reports, China has also confirmed details of the agreed trade framework.
Under this trade deal, China committed to supplying rare earth minerals to the US. Commerce Secretary Howard Lutnick said that once deliveries begin, the US would take down its countermeasures.
With this background in mind, let’s take a look at the 10 best tech stocks to buy under $5.
A financial analyst looking at a monitor displaying the stocks of the public company.
Our Methodology
To compile our list of the 10 best tech stocks to buy under $5, we used the Finviz stock screener. We sorted our results based on market capitalization and picked the top 30 tech stocks with a share price of under $5 as of June 27, 2025. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 10 best tech stocks to buy under $5 were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? 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 $5
10. BlackBerry Limited (NYSE:BB)
Share Price: $4.54
Number of Hedge Fund Holders: 20
BlackBerry Limited (NYSE:BB) is one of the 10 best tech stocks to buy under $5. On June 25, Canaccord Genuity increased its price target on BlackBerry Limited (NYSE:BB) from $4.25 to $4.60 but kept its “Hold” rating.
The research firm made this change because it expects BlackBerry Limited’s (NYSE:BB) business to improve for the rest of the calendar year 2025. Canaccord analysts also noted that the company’s new strategies are expected to become more focused. BlackBerry Limited’s (NYSE:BB) positive adjusted EBITDA gives it more organic and inorganic investment opportunities.
Canaccord pointed out that the company has an $865 million backlog for its QNX platform. This presents significant revenue opportunities in the future. However, the firm expressed uncertainty about when this will lead to faster growth in the company’s IoT segment, especially because there are concerns about auto tariffs.
The research firm also highlighted that less than half of BlackBerry Limited’s (NYSE:BB) QNX revenue in fiscal year 2025 came from North America. Markets like medical devices, industrial automation, and robotics made up 18% of QNX revenue during the same period.
Finally, Canaccord’s updated sum-of-parts analysis of BlackBerry Limited’s (NYSE:BB) business segments reflects the company’s growth potential and better financial health. The firm noted that the general embedded opportunity already represents 43% of the company’s pipeline for SDP 8.0. This is ahead of planned investments in sales and marketing to boost sales in those areas.
BlackBerry Limited (NYSE:BB) is a Canadian software and services company that serves governments and enterprises, including major automakers and industrial giants, with its intelligent and high-performance foundational software.
9. Repay Holdings Corporation (NASDAQ:RPAY)
Share Price: $4.76
Number of Hedge Fund Holders: 22
Repay Holdings Corporation (NASDAQ:RPAY) is one of the 10 best tech stocks to buy under $5. On May 13, DA Davidson maintained a “Buy” rating on Repay Holdings Corporation (NASDAQ:RPAY) with a price target of $12.
This decision came after the company reported its first-quarter earnings. Repay Holdings Corporation (NASDAQ:RPAY) exceeded both DA Davidson’s forecast and the consensus estimate in revenue and adjusted EBITDA.
This announcement came at the same time as Repay Holdings Corporation’s (NASDAQ:RPAY) Board decided to conclude the strategic review process that started in early March.
Additionally, Repay Holdings Corporation’s (NASDAQ:RPAY) management shared limited guidance for the year 2025. The guidance projects a sequential quarterly increase in normalized gross profit growth throughout the year, which shows a positive trend for the company’s financial health.
Repay Holdings Corporation (NASDAQ:RPAY) is a payments technology company that offers integrated payment processing solutions to verticals with specific transaction processing needs.
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