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10 Cheap IT Stocks Hedge Funds Are Buying

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Grand View Research reported that the global IT services market size was estimated at $1.50 trillion in 2024 and is projected to reach $2.59 trillion by 2030, at a CAGR of 9.4% from 2025 to 2030. The shift towards remote and hybrid work models has significantly impacted the demand for IT services. The new structure has created an increased need for IT solutions that support employees working outside traditional office environments. Consequently, IT companies are experiencing a surge in demand for the tools and infrastructure necessary to facilitate remote and hybrid work.

Gartner analysts highlighted that one of the critical IT themes emerging this year is Digital Ethics. It dictates how users should conduct themselves online, on social media platforms, and during the processing of personal information. The goal of digital ethics is to ensure security and prevent data leaks, thereby fostering a responsible and trustworthy digital environment. As technologies, particularly AI, become increasingly integrated into daily operations and personal lives, the adherence to clear ethical guidelines becomes essential to eliminate risks like the misuse of personal data and algorithmic bias.

That being said, we’re here with a list of the 10 cheap IT stocks hedge funds are buying.

A high-rise office building, its staff busy at work providing cybersecurity services.

Methodology

We sifted through the Finviz stock screener to compile a list of the top IT stocks that had a forward P/E ratio under 20 as of July 9. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.

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 Cheap IT Stocks Hedge Funds Are Buying

10. Penguin Solutions Inc. (NASDAQ:PENG)

Forward P/E Ratio as of July 9: 11.71

Number of Hedge Fund Holders: 20

Penguin Solutions Inc. (NASDAQ:PENG) is one of the cheap IT stocks hedge funds are buying. On June 17, Penguin Solutions announced the second generation of its award-winning Stratus ztC Endurance platform, its flagship fault-tolerant computing platform designed to deliver seven nines (99.99999%) availability.

This new family of platforms ensures the uptime of critical applications and data while consolidating workloads within a highly reliable, manageable, and serviceable IT footprint for IT teams. The new generation expands its operating system support to include Linux (RHEL 9.4), in addition to bare metal or virtualized versions of Windows Server and VMware vSphere.

This combination of high-end performance and Linux support makes the platforms well-suited for industries such as financial services, retail, and manufacturing. Furthermore, the processing power of the Stratus ztC Endurance 9110 and 7110 platforms positions them well for AI inferencing workloads at the edge, delivering the high throughput and low latency required for applications like AI image classification.

Penguin Solutions Inc. (NASDAQ:PENG) designs and develops enterprise solutions worldwide.

9. Clarivate (NYSE:CLVT)

Forward P/E Ratio as of July 9: 6.94

Number of Hedge Fund Holders: 25

Clarivate (NYSE:CLVT) is one of the cheap IT stocks hedge funds are buying. On July 9, Clarivate released its annual 2025 G20 Research and Innovation Scorecard. This scorecard was developed by experts at the Institute for Scientific Information/ISI at Clarivate and provides a data-driven overview of the research and innovation capabilities of G20 member nations.

The 2025 scorecard now incorporates data from the Emerging Sources Citation Index/ESCI, which is a part of the Web of Science Core Collection, to provide a more comprehensive view of global research. The scorecard has been refined to better emphasize collaboration and impact, reflecting South Africa’s Ubuntu philosophy, the G20 host for 2025.

Dynamic visualizations are included to showcase each member’s research performance within its economic context and academic priorities. New additions also include OECD field-level breakdowns, insights into open access, and research aligned with Sustainable Development Goals (SDGs), highlighting how G20 nations are collaborating to address global challenges.

Clarivate (NYSE:CLVT) is an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…