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.
8. Unisys Corporation (NYSE:UIS)
Share Price: $4.49
Number of Hedge Fund Holders: 23
Unisys Corporation (NYSE:UIS) is one of the 10 best tech stocks to buy under $5. On May 5, Unisys Corporation (NYSE:UIS) announced three new cloud AI solutions. These new solutions – Cloud AI Foundation, Cloud AI Enablement, and Cloud AI Customer Experience – are part of the company’s Cloud, Applications & Infrastructure (CA&I) business unit.
The new cloud AI solutions by Unisys Corporation (NYSE:UIS) are designed to improve operational efficiency, streamline decision-making processes, and help organizations to maximize resources while leveraging AI into main business operations.
Cloud AI Foundation offers a safe, scalable infrastructure to companies for implementing and governing AI projects. Cloud AI Enablement helps companies add AI to their current systems to improve workflows and decision-making by turning isolated AI models into strong enterprise-grade tools.
Cloud AI Customer Experience uses customer journey analytics, conversational AI, and behavior prediction to offer personalized interactions that are powered by AI.
With these new solutions, Unisys Corporation (NYSE:UIS) will help organizations leverage AI for improved efficiency, cost savings, and customer experiences.
Unisys Corporation (NYSE:UIS) is a global technology solutions company that is known for its cloud, data, AI, digital workplace, logistics, and enterprise computing solutions.
7. PowerFleet, Inc. (NASDAQ:AIOT)
Share Price: $4.46
Number of Hedge Fund Holders: 24
PowerFleet, Inc. (NASDAQ:AIOT) is one of the 10 best tech stocks to buy under $5. On May 27, Lake Street Capital Markets lowered the price target for PowerFleet, Inc. (NASDAQ:AIOT) from $11 to $8 but kept a “Buy” rating.
This adjustment came after observations of general market softness, which is affecting PowerFleet, Inc. (NASDAQ:AIOT). However, there have not been any order cancellations reported.
Jaeson Schmidt of Lake Street Capital Markets pointed out that the company is facing delays and longer sales cycles. These challenges are expected to be short-term. The analyst also said that tariffs might have a slight impact on PowerFleet, Inc.’s (NASDAQ:AIOT) gross margins.
Despite these challenges, Schmidt is still positive about the company’s future. He believes PowerFleet, Inc. (NASDAQ:AIOT) can achieve significant cost synergies. In the fiscal year 2025, the company realized $16 million in annual cost synergies. $11 million of these benefits were recognized within the fiscal year 2025. Lake Street Capital Markets expects that these cost-saving measures will continue helping the company.
The firm has also adjusted its forecast for fiscal year 2026, expecting a better performance in the second half than previously forecasted.
PowerFleet, Inc. (NASDAQ:AIOT) offers AI-powered data solutions to improve mobile asset performance, safety, and sustainability. The company’s cloud-based platform, Powerfleet Unity, uses AI, machine learning, and IoT connectivity to deliver important insights across industrial, logistics, and transportation sectors.
6. Vimeo, Inc. (NASDAQ:VMEO)
Share Price: $4.01
Number of Hedge Fund Holders: 24
Vimeo, Inc. (NASDAQ:VMEO) is one of the 10 best tech stocks to buy under $5. On April 4, Vimeo, Inc. (NASDAQ:VMEO) announced the launch of a new product called Vimeo Streaming. This new service allows creators, whether big or small, to start their own streaming services and branded apps. It also helps in delivering a modern and improved viewing experience for the audiences.
Vimeo Streaming is the next generation of Vimeo, Inc.’s (NASDAQ:VMEO) over-the-top (OTT) platform and it is designed to make it easier for content and media businesses to deliver and make money from their content.
Building and running a streaming service independently can be challenging but with Vimeo Streaming, Vimeo, Inc. (NASDAQ:VMEO) is making this process much simpler. Some of the new features include more ways to monetize and promote content. Membership subscription tiering will allow creators to give their biggest fans special access to live events, merchandise, and other exclusive content. There are also custom video bumpers to promote certain content or sponsorships.
In addition, Vimeo Streaming offers enterprise-grade content protection, advanced analytics, and new AI-powered translations.
Vimeo, Inc. (NASDAQ:VMEO) is a leading online video platform that creatives, businesses, and brands use to host, create, edit, share, and stream high-quality videos.
5. Clarivate Plc (NYSE:CLVT)
Share Price: $4.31
Number of Hedge Fund Holders: 25
Clarivate Plc (NYSE:CLVT) is one of the 10 best tech stocks to buy under $5. On April 30, Stifel analysts maintained a “Buy” rating on Clarivate Plc (NYSE:CLVT) with a price target of $7.00. This decision came after the company released its first quarter 2025 earnings report.
The analysts noted that the results were well received. However, Stifel’s commentary raised the question of whether Clarivate Plc (NYSE:CLVT) can make a full turnaround or if this was just one good quarter.
Stifel analysts pointed out that while the first quarter’s results were impressive, investors will need to see steady performance over several quarters before they feel confident about Clarivate Plc’s (NYSE:CLVT) future.
The firm’s analysts have updated their financial models for Clarivate Plc (NYSE:CLVT) to be slightly more cautious for the rest of the year. Despite the strong performance in the first quarter, Stifel’s full-year estimates for the company remain largely unchanged.
Clarivate Plc (NYSE:CLVT) is a global company that offers data, insights and analytics, and workflow solutions and services in the areas of Academia & Government, Intellectual Property, and Life Sciences & Healthcare.
4. Shoals Technologies Group, Inc. (NASDAQ:SHLS)
Share Price: $4.73
Number of Hedge Fund Holders: 30
Shoals Technologies Group, Inc. (NASDAQ:SHLS) is one of the 10 best tech stocks to buy under $5. On May 30, Jefferies analyst Julian Dumoulin-Smith raised the price target for Shoals Technologies Group, Inc. (NASDAQ:SHLS) from $3.90 to $4.90 but kept a “Hold” rating.
The analyst noted the positive impact of the Foreign Exchange Operations Coverage (FEOC) language. For Shoals Technologies Group, Inc. (NASDAQ:SHLS), this significantly reduces competitive risks from Chinese suppliers. Combined with tariffs, this is expected to encourage customers to choose US-based solutions.
Dumoulin-Smith also increased revenue forecasts for Shoals Technologies Group, Inc. (NASDAQ:SHLS) for 2025 and 2026 by 5% and 8% to $448 million and $524 million, respectively. This reflects the company’s strong position in the utility-scale solar market.
Despite this, Dumoulin-Smith expressed caution about long-term challenges. He noted emerging competitors like NXT, which is expanding into the electrical balance of system (eBOS) market. This could challenge the market share of Shoals Technologies Group, Inc. (NASDAQ:SHLS).
Shoals Technologies Group, Inc. (NASDAQ:SHLS) is a leading provider of eBOS solutions and components, including battery energy storage solutions and components for the global energy transition market.
3. Sabre Corporation (NASDAQ:SABR)
Share Price: $3.18
Number of Hedge Fund Holders: 32
Sabre Corporation (NASDAQ:SABR) is one of the 10 best tech stocks to buy under $5. On June 2, Sabre Corporation (NASDAQ:SABR) reported a new partnership with SalamAir, which is Oman’s leading low-cost carrier.
This partnership will use Sabre Corporation’s (NASDAQ:SABR) marketplace to help SalamAir improve its global visibility, reach more customers, and grow its revenue.
With this deal, Sabre Corporation’s (NASDAQ:SABR) extensive global distribution network will help make SalamAir’s flights and services available to travel agencies around the world. This agreement will help SalamAir connect with new customer segments, get more bookings, and strengthen its position in the regional aviation market.
This agreement highlights Sabre Corporation’s (NASDAQ:SABR) dedication to helping airlines in the Middle East and other regions by providing advanced travel technology solutions.
Sabre Corporation (NASDAQ:SABR) is a leading global travel technology company and one of the world’s largest providers of global distribution systems for air bookings.
2. Blend Labs, Inc. (NYSE:BLND)
Share Price: $3.28
Number of Hedge Fund Holders: 33
Blend Labs, Inc. (NYSE:BLND) is one of the 10 best tech stocks to buy under $5. On May 28, Citizens JMP maintained its “Market Outperform” rating for Blend Labs, Inc. (NYSE:BLND) with a price target of $7.
This reiteration follows a series of investor meetings in the San Francisco Bay Area, where analysts had the chance to talk with Amir Jafari, the company’s Head of Finance & Administration. These meetings helped investors understand Blend Labs, Inc.’s (NYSE:BLND) operations and financial plans better.
Blend Labs, Inc. (NYSE:BLND) has seen its stock price decline so far this year. However, Citizens JMP analysts see the current valuation as a good opportunity to stay positive about the company’s future despite the downward trend.
Blend Labs, Inc. (NYSE:BLND) offers digital banking solutions through its cloud origination platform for banks, credit unions, and mortgage lenders.
1. Grab Holdings Limited (NASDAQ:GRAB)
Share Price: $4.92
Number of Hedge Fund Holders: 56
Grab Holdings Limited (NASDAQ:GRAB) is one of the 10 best tech stocks to buy under $5. On May 29, Citi analysts reiterated a “Buy” rating on Grab Holdings Limited (NASDAQ:GRAB) with a price target of $6.20.
This decision came after the company took part in the Citi Pan-Asia Conference in Singapore. Grab Holdings Limited’s (NASDAQ:GRAB) management team expressed confidence in maintaining growth momentum across Southeast Asia.
At the conference, the company’s management noted that the competition in the ride-hailing market is manageable, even with new low-cost competitors entering the space.
Grab Holdings Limited (NASDAQ:GRAB) also pointed out opportunities for higher advertising revenues and loan book expansion. The company is focused on growing monthly transacting users, gross merchandise value, and improving EBITDA and cash flow.
Citi’s analysts kept their positive stance on Grab Holdings Limited (NASDAQ:GRAB) and see it as an important company in the ASEAN Internet sector.
Grab Holdings Limited (NASDAQ:GRAB) offers a superapp in Southeast Asia, providing services across deliveries, mobility, and digital financial services. The company serves over 800 cities in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
While we acknowledge the potential of GRAB as an investment, 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 GRAB and that has a 100x upside potential, check out our report about this cheapest AI stock.
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