On Friday, July 25, US stocks went up, with the S&P 500 reaching a record high for the fifth day in a row. The S&P 500 rose by 0.4% to close at a new record high. The tech-heavy Nasdaq Composite also increased by about 0.3% and hit another all-time high. The Dow Jones Industrial Average went up about 0.5% as well.
Wall Street had a good week, which was driven partly by good earnings reports from blue-chip and “Big Tech” companies. These positive results gave investors confidence as the earnings season got off to a nice start.
Next week, some of the biggest tech companies like Apple Inc. (NASDAQ:AAPL), Meta Platforms, Inc. (NASDAQ:META), and Microsoft Corporation (NASDAQ:MSFT) will report their earnings.
Looking ahead, some experts predict a strong upward move for tech stocks in the second half of 2025.
Wedbush analyst Dan Ives wrote in a preview note:
“After a relatively strong few months navigating tariff and geopolitical storms, now tech stocks are poised to see another major move higher in the second half of 2025, led by the tech winners in this ‘golden age’ for the tech world.”
With this background in mind, let’s take a look at the 10 best tech stocks under $50 to invest in.
Our Methodology
To compile our list of the 10 best tech stocks under $50 to invest in, we used the Finviz stock screener. We sorted our results based on market capitalization and picked the top 50 tech stocks with a share price of under $50 as of July 24, 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 under $50 to invest in 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 Under $50 To Invest In
10. Hewlett Packard Enterprise Company (NYSE:HPE)
Share Price: $20.51
Number of Hedge Fund Holders: 45
Hewlett Packard Enterprise Company (NYSE:HPE) is one of the best tech stocks under $50 to invest in. On July 25, Citi resumed coverage of Hewlett Packard Enterprise Company (NYSE:HPE), giving the stock a “Buy” rating and setting the price target at $25.
The firm highlighted benefits from the company’s acquisition of Juniper Networks. According to Citi analysts, this acquisition positions Hewlett Packard Enterprise Company (NYSE:HPE) favorably to benefit from growth in AI, enterprise networking, and edge computing.
Citi expects the $600 million in operating expense synergies identified by Hewlett Packard Enterprise Company (NYSE:HPE), up from the previous estimate of $450 million, to grow earnings per share by about 15%.
The research firm pointed out that about 50% of Hewlett Packard Enterprise Company’s (NYSE:HPE) operating income now comes from the higher-margin networking segment, up from the previous 35%. Because of this, Citi analysts believe a price-to-earnings (P/E) ratio of 10 times for the company’s earnings in fiscal 2024 is fair, which is higher than the median P/E ratio of 8 times.
Citi also sees potential for more revenue growth as Juniper products are integrated into Hewlett Packard Enterprise Company’s (NYSE:HPE) global sales channels. The firm expects the company to reduce debt by using the free cash flow generated in the coming years.
Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that specializes in essential enterprise technology, AI, cloud, and networking. The company offers intelligent solutions for organizations to manage and utilize their data.
9. Flex Ltd. (NASDAQ:FLEX)
Share Price: $49.67
Number of Hedge Fund Holders: 46
Flex Ltd. (NASDAQ:FLEX) is one of the best tech stocks under $50 to invest in. On July 2, KeyBanc increased its price target for Flex Ltd. (NASDAQ:FLEX) to $60 from $50 while keeping an “Overweight” rating.
The investment firm highlighted Flex Ltd.’s (NASDAQ:FLEX) differentiated strategy in the data center market. The company reaches more of the product-and-service total addressable market through its wide range of power products built on proprietary intellectual property.
KeyBanc analysts noted that when compared to its peers, Flex Ltd. (NASDAQ:FLEX) has achieved superior gross margin expansion. However, Flex Ltd. (NASDAQ:FLEX) still trades at a discount, trading at 16.5 times earnings compared to an average of 18.9 times for similar companies involved in data centers and AI.
Flex Ltd. (NASDAQ:FLEX) is a global manufacturing partner that helps companies design and build products. The company offers technology innovation, supply chain, and manufacturing solutions to a wide range of industries and end markets. Flex Ltd. (NASDAQ:FLEX) also designs and manufactures power and compute solutions for the data center market.
8. HP Inc. (NYSE:HPQ)
Share Price: $25.69
Number of Hedge Fund Holders: 47
HP Inc. (NYSE:HPQ) is one of the best tech stocks under $50 to invest in. On June 10, HP Inc. (NYSE:HPQ) announced a cash dividend of $0.2894 for each share of its common stock.
This is the fourth dividend payment so far in the company’s fiscal year 2025. According to the report by HP Inc. (NYSE:HPQ), the dividend will be payable on October 1 to stockholders of record as of September 10. The company has about 0.9 billion shares of common stock outstanding.
Previously, during the second quarter of its fiscal year 2025 that ended April 30, 2025, HP Inc. (NYSE:HPQ) used $100 million in cash to buy back about 3 million shares of common stock in the open market. During the quarter, the company returned a total of about $400 million to shareholders through dividends and share repurchases.
HP Inc. (NYSE:HPQ) is an American multinational information technology company that offers a broad range of devices, services, and subscriptions for personal computing, printing, 3D printing, hybrid work, and gaming.
7. Confluent, Inc. (NASDAQ:CFLT)
Share Price: $26.60
Number of Hedge Fund Holders: 49
Confluent, Inc. (NASDAQ:CFLT) is one of the best tech stocks under $50 to invest in. On July 11, UBS increased its price target for Confluent, Inc. (NASDAQ:CFLT) from $30 to $32 while keeping a “Buy” rating.
This decision came after UBS analysts spoke with over 10 industry sources ahead of the company’s earnings report for its second quarter of 2025, which is scheduled for release on July 30.
UBS analysts pointed out that demand for Confluent, Inc.’s (NASDAQ:CFLT) core streaming services appears stable. However, so far, the impact of artificial intelligence integration has shown only a modest contribution to growth.
The firm noted the medium-term growth potential from Confluent, Inc.’s (NASDAQ:CFLT) Flink, Tableflow, and WarpStream offerings. UBS analysts believe these products could add growth of over 5 percentage points once fully implemented, likely in 2027 and beyond.
UBS analysts believe that Confluent, Inc.’s (NASDAQ:CFLT) current valuation is fair at about 7 times its estimated 2026 revenue. The firm also expects the company to achieve free cash flow margins in the mid-teens by 2027.
Confluent, Inc. (NASDAQ:CFLT) is an American technology company that is known for its data streaming platform for organizations to manage and process real-time data streams.
6. GitLab Inc. (NASDAQ:GTLB)
Share Price: $46.79
Number of Hedge Fund Holders: 52
GitLab Inc. (NASDAQ:GTLB) is one of the best tech stocks under $50 to invest in. On July 18, BofA Securities kept its Buy rating for GitLab Inc. (NASDAQ:GTLB) with a price target of $72.
This decision came after the company announced that its Duo Agent Platform has moved into public beta. This DevSecOps orchestration platform is designed to support collaboration between developers and AI agents.
BofA Securities expects the platform to become generally available either later this year or in early 2026, potentially serving as a strong driver for the company’s future growth.
The firm sees this as an important development as the platform’s production deployment and revenue generation are becoming key investment considerations for GitLab Inc. (NASDAQ:GTLB).
BofA Securities noted that GitLab Inc.’s (NASDAQ:GTLB) current valuation is lower than some of its peers, which represents an “enhanced buying opportunity,” especially as the firm sees the company as a market share gainer in the DevSecOps segment.
GitLab Inc. (NASDAQ:GTLB) is a software company that develops and operates GitLab, a comprehensive DevSecOps platform that can develop, secure, and operate software.
5. Unity Software Inc. (NYSE:U)
Share Price: $33.34
Number of Hedge Fund Holders: 52
Unity Software Inc. (NYSE:U) is one of the best tech stocks under $50 to invest in. On July 16, Jefferies analyst Brent Thill increased the price target for Unity Software Inc. (NYSE:U) from $29 to $35 while maintaining a “Buy” rating.
This decision comes as the sentiment is improving around the company’s Vector product, an AI-powered advertising platform. Thill pointed out that this product saw positive mentions increase from 7 in the first quarter to 9 in the second quarter. The analyst also noted that the Return on Ad Spend (ROAS) improved to the 10%-20% range, up from 5%-7% in Q1 2025.
Thill wrote that the impact of Vector is expected to be seen over multiple quarters. The analyst is encouraged by the quarter-over-quarter progress.
For Unity Software Inc.’s (NYSE:U) engine business, Thill pointed out that Unity 6 is now the most-used engine by the company as its usage is reaching 50% of respondents, showing stable growth in the company’s Create segment.
Jefferies increased its revenue forecasts for Unity Software Inc. (NYSE:U) by 2% in 2025 and 3% in 2026. The firm also increased its EBITDA estimates by 11% for 2025 and 9% for 2026.
Unity Software Inc. (NYSE:U) is an American video game software development company that is known for its game creation engine used to create video games and other applications. The company offers a range of tools that help developers create, market, and grow video games and other applications across all major platforms.
4. Lyft, Inc. (NASDAQ:LYFT)
Share Price: $14.38
Number of Hedge Fund Holders: 56
Lyft, Inc. (NASDAQ:LYFT) is one of the best tech stocks under $50 to invest in. On July 21, Bernstein increased its price target for Lyft, Inc. (NASDAQ:LYFT) from $16 to $18 and kept a “Market Perform” rating.
The research firm has a generally positive view of Lyft, Inc. (NASDAQ:LYFT) and expects the company’s Q2 2025 results, expected on August 6, to align with guidance and possibly be near the high end of the guidance range.
Bernstein forecasts a 13% increase in gross bookings compared to last year’s gross bookings and $125 million in Adjusted EBITDA for the quarter for Lyft, Inc. (NASDAQ:LYFT). The research firm pointed out that the first quarter had general and administrative cost benefits that are unlikely to continue.
According to Bernstein analysts, the company does not need exceptional quarterly results to improve confidence among investors, suggesting that “a straightforward print with modest upward bias to numbers is probably enough to start establishing a more consistent track record.” This could potentially increase Lyft, Inc.’s (NASDAQ:LYFT) valuation multiple.
Additionally, Bernstein expects the company to give more details about its partnership with May Mobility during the earnings report. However, the firm has moderated expectations about the size and impact of this partnership.
Lyft, Inc. (NASDAQ:LYFT) is an American company that offers ridesharing services, bikes, and scooters in the United States and Canada.
3. Grab Holdings Limited (NASDAQ:GRAB)
Share Price: $5.34
Number of Hedge Fund Holders: 56
Grab Holdings Limited (NASDAQ:GRAB) is one of the best tech stocks under $50 to invest in. On June 9, Grab Holdings Limited (NASDAQ:GRAB) shared certain updates and operating metrics for the months of April and May 2025.
Despite economic uncertainties, Grab Holdings Limited (NASDAQ:GRAB) saw strong performance in its on-demand gross merchandise value (GMV) and in the number of rides for the months of April and May.
The company’s business in Indonesia continued to grow sequentially during these two months. Grab Holdings Limited (NASDAQ:GRAB) is focused on making its services more affordable and expanding in Indonesia, which is also helping the company’s driver-partners, merchant-partners, and customers.
In April and May 2025, Grab Holdings Limited (NASDAQ:GRAB) saw its on-demand GMV grow by 19% year-over-year. The number of rides continued to grow faster than GMV, increasing 23% year-over-year. Deliveries GMV also rose by 20% compared to April and May of 2024.
According to the report by Grab Holdings Limited (NASDAQ:GRAB), these positive results were driven by the company’s focus on affordability and product-led growth initiatives. The company sees strong traction with users showing improved frequency and retention.
Grab Holdings Limited (NASDAQ:GRAB) is expected to share more details about its overall performance in its Q2 2025 earnings report. The company plans to announce these results after the US market closes on July 30, 2025.
Grab Holdings Limited (NASDAQ:GRAB) is a Singaporean multinational technology company that operates 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.
2. Toast, Inc. (NYSE:TOST)
Share Price: $48.07
Number of Hedge Fund Holders: 64
Toast, Inc. (NYSE:TOST) is one of the best tech stocks under $50 to invest in. On June 25, UBS reiterated its “Buy” rating for Toast, Inc. (NYSE:TOST) with a price target of $47.
The firm highlighted Toast, Inc.’s (NYSE:TOST) strong growth in annual recurring revenue (ARR). UBS sees this growth as the most important metric for investors.
UBS pointed out that the company’s SaaS (software as a service) ARR is compounding at about a low 30s percentage rate. According to the equity research firm, this growth is driven by mid-20s percentage growth in locations and mid-single-digit percentage growth in SaaS ARR per location.
The firm noted that Toast, Inc. (NYSE:TOST) is expanding into Enterprise locations, which lowers the average revenue per user on new business. Despite this, UBS pointed out that Enterprise locations offer appealing payback periods that help the overall business.
According to UBS analysts, Enterprise customer lifetime value to customer acquisition cost (LTV/CAC) ratios are more attractive than small and medium-sized business restaurants because of the longer relationships and reduced churn rate.
Toast, Inc. (NYSE:TOST) is an American financial technology and cloud-based restaurant management software company that provides a cloud-based, all-in-one digital technology platform of software-as-a-service (SaaS) products and financial technology solutions to restaurants across point of sale (POS), payments, and operations.
1. Intel Corporation (NASDAQ:INTC)
Share Price: $22.63
Number of Hedge Fund Holders: 91
Intel Corporation (NASDAQ:INTC) is one of the best tech stocks under $50 to invest in. On July 25, HSBC reduced its price target for Intel Corporation (NASDAQ:INTC) from $22.00 to $21.25 and maintained a “Hold” rating.
The company reported Q2 2025 revenue of $12.9 billion, beating both HSBC’s forecast and consensus estimates. However, Intel Corporation (NASDAQ:INTC) recognized $800 million of non-cash impairment and accelerated depreciation charges and $200 million of one-time period costs during the quarter. These expenses caused the company’s gross margin to drop to 29.7%, significantly below the guidance of 36.5%.
For Q3 2025, Intel Corporation (NASDAQ:INTC) expects revenue between $12.6 and $13.6 billion, representing quarter-over-quarter growth of 2%. The company projects a gross margin of 36%, which is below consensus estimates of 37.2%. This reflects ongoing pressure on margins. Additionally, the EPS guidance by Intel Corporation (NASDAQ:INTC) of $0.00 for Q3 2025 fell short of HSBC’s projection and consensus expectations of $0.05.
HSBC cut its estimates for Intel Corporation’s (NASDAQ:INTC) earnings per share in 2025 and 2026 to $0.10 and $0.56, down from previous predictions of $0.31 and $0.93, respectively.
HSBC also pointed out that Intel Corporation (NASDAQ:INTC) is being cautious with its foundry business. Instead of focusing on the 18A node, the company is working on its next-generation 14A node for external customers. Intel Corporation (NASDAQ:INTC) indicated that its capital spending in 2026 would be lower than the 2025 net capex of $8 billion to $11 billion, reflecting a more conservative investment strategy.
Intel Corporation (NASDAQ:INTC) is an American technology company that specializes in the manufacturing of central processing units (CPUs) and semiconductors.
While we acknowledge the potential of INTC 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 INTC and that has a 100x upside potential, check out our report about this cheapest AI stock.
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