In this article, we will talk about the 10 Overlooked Tech Stocks to Buy Now.
After overcoming major macroeconomic challenges, the IT sector has started 2025 with fresh vigor. The tech sector is now ready for a resurgence after a period of instability characterized by high inflation, rising interest rates, and worldwide unpredictability. The sector is expected to be “healthy” or “very healthy” in 2025, according to 62% of tech executives polled by Deloitte. Global IT spending is expected to increase by 9.3%, driven mostly by double-digit growth in software and data center investments. As companies move AI initiatives from pilot projects to full-scale production deployments, analysts anticipate that generative AI, cybersecurity, and cloud services will continue to be important growth drivers.
The rate of layoffs dropped significantly in 2024, indicating growing stability. But new difficulties have surfaced, especially in relation to geopolitical tensions and regulatory barriers. The world economy is already feeling the effects of President Trump’s expansive tariff plans, which include additional charges on major tech manufacturing countries like Taiwan, India, and Vietnam that range from 26% to 49%. Although imports of semiconductors, which are essential for the development of AI, have been temporarily exempted, tech companies that rely on international supply chains face new risks as a result of the unstable trade policy climate.
Meanwhile, generative AI is proving to be a double-edged sword. While it is projected to contribute 21% to U.S. GDP by 2030, as reported by the World Economic Forum, there are growing concerns about the technology displacing millions of jobs, particularly administrative roles. As the World Economic Forum highlights, the solution lies not in halting AI innovation but fostering “Authentic Intelligence”—an approach emphasizing the collaboration of human critical thinking with AI’s capabilities to ensure inclusive economic growth.
Additionally, cybersecurity has become a significant priority on the strategic agenda. As the use of AI increases, so does the attack surface available to hackers. By 2028, it’s expected that global spending on cybersecurity will exceed $200 billion, as businesses emphasize bolstering their defenses. However, only 24% of existing gen AI projects are thought to be sufficiently secure, indicating that trust is still a major obstacle to the widespread use of AI.
In summary, despite the fact that 2025 holds great promise for the IT industry due to advancements in generative AI, cloud migration, and robust IT investment, businesses still have to deal with a complex web of ethical, geopolitical, and legal issues. Successful companies will strike a balance between daring technological innovation, careful risk management, strategic supply chain diversity, and a dedication to upholding stakeholder and customer confidence.
Against this dynamic backdrop, let’s look at 10 Overlooked Tech Stocks to Buy Now, which are not only ready to capitalize on upcoming opportunities but may also provide attractive upside potential for investors seeking beyond the conventional mega-cap giants.
Source: pixabay
Methodology
To find overlooked tech stocks, we started by looking for companies with a market capitalization greater than $5 billion, ensuring a concentration on financially strong, large-cap enterprises. We chose stocks from this category that had a price-to-earnings (P/E) ratio of less than 15, using the P/E ratio as a conventional valuation indicator to highlight relatively affordable earnings-driven stocks. We then evaluated these firms based on hedge fund sentiment, utilizing data from Insider Monkey’s fourth quarter 2024 report. Finally, we chose the ten companies with the least number of hedge fund investors to represent our list of Overlooked Tech Stocks to Buy Now.
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. Hewlett Packard Enterprise Company (NYSE:HPE)
P/E Ratio: 8.61
Hedge Fund Holders: 66
Hewlett Packard Enterprise Company (NYSE:HPE) provides solutions that enable businesses to acquire, analyze, and act on data across servers, hybrid clouds, and intelligent edge applications. HPE, based in Spring, Texas, is currently honing its approach to AI, hybrid cloud, and next-generation infrastructure.
Hewlett Packard Enterprise Company (NYSE:HPE) reported solid Q1 2025 results, with sales up 17% year-over-year to $7.9 billion, boosted by 30% growth in its server division and 11% growth in hybrid cloud solutions. The company’s GreenLake cloud platform achieved a new milestone, surpassing $2 billion in yearly recurring revenue, a 46% increase year-over-year. However, profitability was hampered by aggressive server pricing and excess AI inventory, resulting in a gross margin of 29.4% for the quarter. To address this, HPE announced a 5% labor cut and tightened pricing controls.
Meanwhile, HPE is digging into the AI opportunity. At NVIDIA GTC 2025, Hewlett Packard Enterprise Company (NYSE:HPE) announced an expanded cooperation with NVIDIA, delivering HPE Private Cloud AI solutions that are integrated with NVIDIA’s AI Data Platform. These new offerings ease deployment for generative AI, agentic AI, and digital twin workloads, giving customers faster time to value and full-stack observability through HPE OpsRamp. New HPE servers with NVIDIA’s Blackwell architecture put the company at the forefront of AI model training and inference.
Elliott Management’s $1.5 billion investment in Hewlett Packard Enterprise Company (NYSE:HPE) in April 2025 has sparked new activist interest, potentially catalyzing more operational reforms. As an underappreciated technology stock, HPE’s reinvigorated AI focus, expanding hybrid cloud footprint, and internal efficiency measures may produce a potential turnaround story for investors.
9. Dell Technologies Inc. (NYSE:DELL)
P/E Ratio: 10.13
Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) is a global provider of integrated technology solutions that include modern storage systems, AI-optimized servers, networking equipment, and a diverse range of PCs and peripherals. Dell services customers worldwide through its Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). Dell, founded in 1984 and located in Round Rock, Texas, has grown from a traditional PC manufacturer to a full-stack technology provider, with AI increasingly integrated into its product line.
Dell’s fiscal year 2025 results were impressive, with revenue rising 8% to $95.6 billion and earnings per share reaching a record $8.14, a 10% increase year-over-year. The company dramatically increased its AI services, introducing five new AI-optimized platforms and upgrading its PowerEdge servers to support the most recent NVIDIA Blackwell architecture. Dell Technologies Inc. (NYSE:DELL) also announced the Dell AI Data Platform, which improves data access and management for AI installations, and expanded its Pro Max portfolio for AI developers. Its ISG division, which comprises AI servers and storage, had particularly strong growth, with ISG revenue increasing by 22% in Q4 alone. Dell’s backlog of AI orders was around $9 billion as of February 2025, indicating strong forward demand.
Furthermore, CEO Michael Dell has stressed a new growth catalyst: the AI-powered PC refresh cycle and the October 2025 end-of-life date for Windows 10. He emphasized that the massive amount of data generated by connected devices is driving unprecedented demand for servers and storage, both of which Dell Technologies Inc. (NYSE:DELL) dominates. Despite recent market volatility, management remains confident, forecasting FY26 sales of $101 billion to $105 billion and 14% EPS growth at the midpoint.
Dell Technologies Inc. (NYSE:DELL) appears to be an exciting, overlooked tech stock poised to benefit from AI tailwinds and enterprise modernization trends, given its aggressive pivot into AI infrastructure and PCs, strong cash flow generation, and shareholder-friendly policies such as dividends and buybacks.
8. Flex Ltd. (NASDAQ:FLEX)
P/E Ratio: 11.59
Hedge Fund Holders: 52
Flex Ltd. (NASDAQ:FLEX) is a multinational manufacturing conglomerate that operates in two primary segments: Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). It serves a wide range of industries, providing solutions for cloud infrastructure and consumer devices as well as automotive, healthcare, and industrial equipment. With headquarters in Austin, Texas, and a history dating back to 1969, Flex has grown into a prominent player in integrating cutting-edge manufacturing with next-generation technology.
Flex Ltd. (NASDAQ:FLEX) reported exceptional financial results in the third quarter of FY2025, ended December 31, 2024. Revenue increased to $6.6 billion, fueled mostly by strong growth in the data center, healthcare, and consumer markets. Its adjusted EPS increased 43% year-over-year to $0.77, with operating margins above 6% for the first time, indicating strong cost execution and a superior business mix. Free cash flow for the quarter was $306 million, and management reaffirmed its full-year free cash flow forecast of more than $800 million.
Flex Ltd. (NASDAQ:FLEX) received two outstanding 2025 Automotive News PACE Awards for its Jupiter Compute Platform and Backup DC/DC Converter. These technologies are critical to enabling software-defined vehicles and electric mobility, demonstrating Flex’s leadership in next-generation automotive solutions. Flex’s collaboration with Torc and NVIDIA on autonomous trucking technology emphasizes the company’s critical role in scaling physical AI compute platforms.
Strategic investments enhance its prospects. Flex Ltd. (NASDAQ:FLEX) announced in February 2025 that it would establish a 400,000-square-foot plant in Dallas to extend its power product production footprint. This program attempts to fulfill the growing demand for grid-to-chip data center infrastructure caused by AI adoption.
Flex Ltd. (NASDAQ:FLEX) is an intriguing, overlooked tech stock for long-term investors, thanks to its strong fundamentals, rapid development into AI-driven businesses, and a valuation that keeps it off many investors’ radars.
7. HP Inc. (NYSE:HPQ)
P/E Ratio: 7.07
Hedge Fund Holders: 48
HP Inc. (NYSE:HPQ) is a global pioneer in personal computing, printing, and hybrid work solutions. It operates through three segments: Personal Systems, Printing, and Corporate Investments. The company, formerly known as Hewlett-Packard, was formed in 1939 and is based in Palo Alto, California. Its comprehensive range includes desktops, notebooks, workstations, retail POS systems, printers, and upcoming technologies such as 3D printing and industrial graphics solutions.
HP Inc. (NYSE:HPQ) reported a 2% year-over-year sales growth in the first quarter of 2025, ending December 31, 2024, owing to solid performance in its Personal Systems commercial division. Non-GAAP EPS was $0.74, slightly above the projection midpoints, indicating continued performance. Management underlined the importance of AI PCs, sophisticated compute solutions, and workforce technologies as major growth drivers, while redefining gaming as a core offering rather than a priority. HP’s investments in strategic innovation, such as the acquisition of Humane assets to improve AI capabilities across devices, are intended to future-proof the portfolio.
In a significant milestone, HP Inc. (NYSE:HPQ) announced a multi-year cooperation with Reincubate to create AI-powered video conferencing technology. The cooperation will use NPUs in next-generation AI PCs to enable entirely on-device, secure, and efficient AI computing, offering longer battery life and more immersive collaborative experiences. HP also showed off many AI-powered devices at CES 2025, including the EliteBook Ultra and Zbook Ultra, demonstrating its aggressive push into AI-enhanced computing.
Despite geopolitical concerns and tariffs affecting supply chains, HP Inc. (NYSE:HPQ) remains robust, projecting improved profitability in the second half of FY25, aided by Windows 11 refresh cycles and more AI PC use. With excellent free cash flow estimates and a commitment to shareholder returns, HP Inc. stands out as an overlooked tech stock with strong potential for long-term growth.
6. Super Micro Computer, Inc. (NASDAQ:SMCI)
P/E Ratio: 9.81
Hedge Fund Holders: 45
Super Micro Computer, Inc. (NASDAQ:SMCI) is a global pioneer in high-performance server and storage systems, serving markets such as enterprise data centers, cloud computing, artificial intelligence, 5G, and edge computing. Super Micro, based in San Jose, California, develops IT solutions that include modular servers, networking devices, storage systems, and server management software.
The company is one of the most intriguing, overlooked tech stocks today, capitalizing on the enormous AI demand wave. Super Micro predicts revenue between $5.6 billion and $5.7 billion in the second quarter of fiscal 2025, representing a staggering 54% rise year-over-year. Non-GAAP earnings per share are expected to range between $0.58 and $0.60, with a non-GAAP operating margin of roughly 7.9%. Although gross margins fell marginally to 11.9% owing to product and client mix, Supermicro is still focused on scaling new AI-optimized platforms.
Notably, Super Micro Computer, Inc. (NASDAQ:SMCI) has started shipping NVIDIA Blackwell products, such as the B200 HGX systems and GB200 NVL72 racks. The company is growing its lead in liquid-cooled data center systems, with liquid cooling likely to be used in more than 30% of new data centers within a year. Its Datacenter Building Block Solutions provide end-to-end infrastructure, enabling customers to reduce total cost of ownership by up to 40%.
Supermicro is rapidly expanding its manufacturing footprint, with new facilities in Malaysia, Taiwan, Europe, and increased production in Silicon Valley. It obtained $700 million in convertible senior notes to support its aggressive growth efforts.
Super Micro Computer, Inc. (NASDAQ:SMCI) has teamed with SteelDome to develop sophisticated virtualization and software-defined storage solutions aimed at business and edge deployments, therefore boosting its AI and hyperconverged products.
Despite its pace, Super Micro Computer, Inc. (NASDAQ:SMCI) is an overlooked tech stock, providing investors with a unique opportunity to invest in a company predicting revenue of $23.5 billion to $25 billion in 2025, and an aggressive $40 billion revenue target by 2026.
5. Arrow Electronics, Inc. (NYSE:ARW)
P/E Ratio: 14.84
Hedge Fund Holders: 35
Arrow Electronics, Inc. (NYSE:ARW) is a prominent player in the technology industry, providing thousands of industrial and commercial customers with critical electrical components and business computer solutions. Arrow’s Global Components and Global Enterprise Computing Solutions (ECS) segments operate in the Americas, EMEA, and Asia-Pacific, powering industries ranging from aerospace and energy to cloud and AI infrastructure.
This neglected technology stock recently demonstrated its resilience with impressive fourth-quarter 2024 results. Arrow Electronics, Inc. (NYSE:ARW) exceeded expectations in the quarter ended December 31, 2024, with sales of $7.3 billion and non-GAAP EPS of $2.97. Its Global Components division generated $4.8 billion in sales despite persistent softness in several verticals, while ECS sales increased 12% year-over-year to $2.5 billion, driven by demand for hybrid cloud, infrastructure software, and AI solutions. Cash flow from operations totaled $326 million, and Arrow maintained its prudent capital allocation by repurchasing $50 million in shares during the quarter.
Arrow Electronics, Inc. (NYSE:ARW) is strategically preparing itself for future growth by forming relevant alliances and expanding services. In March 2025, the company expanded its private label managed and professional services portfolio in North America, with the goal of assisting channel partners in better leveraging AI, cloud, and security prospects. These services are geared towards high-demand areas such as LLM management, AI deployments, app modernization, and safe cloud backup.
Arrow Electronics, Inc. (NYSE:ARW) also expanded its product portfolio by entering a global distribution deal with Ohmite, a century-old leader in power resistors for industries such as transportation and aircraft.
Arrow Electronics, Inc. (NYSE:ARW) is quietly gaining steam and might be a lucrative buy for investors looking for overlooked tech stocks, thanks to stabilized industry circumstances, expanding cloud and AI use, and a strong financial basis.
4. TD SYNNEX Corporation (NYSE:SNX)
P/E Ratio: 9.31
Hedge Fund Holders: 33
TD SYNNEX Corporation (NYSE:SNX), a key distributor and solutions aggregator for the IT ecosystem, is strengthening its position as a critical link between technology vendors and global clients. With a portfolio that includes endpoint devices, data center technologies, cloud, cybersecurity, artificial intelligence, and hybrid solutions, TD SYNNEX assists organizations in over 100 countries in meeting increasingly complex IT demands.
TD SYNNEX Corporation (NYSE:SNX) reported remarkable performance in the first quarter of fiscal 2025, ending February 28, 2025. Gross billings rose 7.5% year-over-year to $20.7 billion, while net revenue increased 4% to $14.5 billion. Advanced Solutions climbed 7%, while Endpoint Solutions increased 8%, demonstrating broad-based success. Non-GAAP EPS was $2.80, well within the company’s expectations. Although problems in its Hive business resulted in a minor drag on profits, management is hopeful that Hive will return to normal later this year. TD SYNNEX Corporation (NYSE:SNX) also confirmed mid-single-digit gross billings growth in fiscal 2025 and plans to achieve $1.1 billion in free cash flow.
Strategic moves continue to broaden TD SYNNEX’s capabilities. On April 22, 2025, the company announced a partnership with Trifork, which will add cutting-edge AI, spatial computing, and scalable software solutions to the company’s portfolio. This alliance will speed up digital transformation for customers in critical areas such as healthcare, finance, and energy. TD SYNNEX Corporation (NYSE:SNX) was also named NVIDIA’s 2025 Distributor of the Year for the Americas for the second year in a row, reinforcing its leadership in delivering AI-powered solutions through initiatives such as Destination AI and advanced platforms built on NVIDIA’s Blackwell architecture.
With its end-to-end strategy, broad technology reach, and expanding network of high-growth vendors, TD SYNNEX Corporation (NYSE:SNX) is an overlooked tech stock poised to benefit from the continuous convergence of AI, cloud, and cybersecurity trends in the global IT landscape.
3. United Microelectronics Corporation (NYSE:UMC)
P/E Ratio: 13.42
Hedge Fund Holders: 18
United Microelectronics Corporation (NYSE:UMC) is a global semiconductor foundry that provides integrated circuit manufacturing and backend services in areas such as mobile, IoT, computing, and automotive. As an underappreciated technology stock, United Microelectronics is gaining traction through controlled operations and smart expansion.
In the first quarter of 2025, United Microelectronics Corporation (NYSE:UMC) reported revenue of around $1.85 billion, a 5.9% increase over the previous year. Wafer shipments remained steady sequentially, but up 12% year-over-year, indicating strong demand. However, a one-time pricing adjustment at the beginning of the year, combined with a temporary disruption caused by an earthquake, weighed on results. Gross margin fell to 26.7%, while net income was around $250 million, or $0.02 per share. United Microelectronics Corporation (NYSE:UMC) has a robust financial position, with cash reserves of over $3.17 billion, which positions the company well for future investments and market changes.
Key growth areas include the company’s 22- and 28-nanometer systems, which currently account for 37% of overall revenue. The 22-nanometer category alone rose by 46% sequentially, owing to applications such as OLED display drivers and WiFi chips. United Microelectronics Corporation’s (NYSE:UMC) new Singapore Phase 3 factory is currently being expanded, and it is slated to begin volume production in early 2026. Management also emphasized increased consumer demand in geographically diverse manufacturing in the face of mounting global trade tensions.
United Microelectronics Corporation (NYSE:UMC) expects a 5% to 7% increase in wafer shipments in the second quarter, steady ASPs, and a gross margin recovery to about 30%, supporting a cautiously positive stance.
2. Open Text Corporation (NASDAQ:OTEX)
P/E Ratio: 6.4
Hedge Fund Holders: 14
Open Text Corporation (NASDAQ:OTEX) is a major provider of information management and cybersecurity solutions to global enterprise clients. Headquartered in Waterloo, Canada, the company’s diverse portfolio includes content management, AI-powered analytics, cybersecurity, cloud services, and supply chain automation, with over 120,000 customers worldwide.
Open Text Corporation (NASDAQ:OTEX) reported $1.33 billion in revenue and $501.5 million in adjusted EBITDA in fiscal Q2 2025, for a margin of 37.6%. Free cash flow totaled $307 million, and the company completed the quarter with $1.12 billion of cash. The company returned $258 million to shareholders through share repurchases and increased its fiscal 2025 share buyback authorization by $150 million, bringing it to $450 million. Cloud revenues increased 2.7% year-over-year, driven by a record $250 million in new cloud contract bookings.
Open Text Corporation (NASDAQ:OTEX) expanded its cybersecurity solution by launching Core Threat Detection and Response on February 20, 2025. The new AI-powered technology, which integrates with Microsoft Azure and Security Copilot, improves threat detection across hybrid cloud settings.
The Cybersecurity Cloud now serves more than 7,500 enterprise clients, establishing Open Text Corporation (NASDAQ:OTEX) as a market leader in next-generation security solutions.
Management confirmed its fiscal 2025 free cash flow projection of $600 to $650 million, while marginally decreasing sales expectations to $5.175 billion to $5.27 billion. Importantly, Open Text Corporation (NASDAQ:OTEX) anticipates a return to total revenue growth in Q4, led by cloud, security, and AI projects based on its Titanium X platform.
With strong momentum in its cloud and cybersecurity businesses, aggressive capital returns, and improved operational efficiency, Open Text Corporation (NASDAQ:OTEX) is developing as an overlooked tech stock with the ability to deliver long-term shareholder value.
1. Seagate Technology Holdings plc (NASDAQ:STX)
P/E Ratio: 9.56
Hedge Fund Holders: 11
Seagate Technology Holdings plc (NASDAQ:STX) is a global pioneer in data storage solutions, offering hard disk drives, solid-state drives, and storage systems for the cloud, edge, and business markets worldwide. Seagate, founded in 1978 and based in Singapore, is a key player in facilitating digital transformation by providing scalable storage infrastructure to support today’s tremendous data growth.
Seagate Technology Holdings plc (NASDAQ:STX) ended calendar 2024 with solid momentum, growing revenue by 7% sequentially and posting non-GAAP earnings per share above $2 for the first time in 12 quarters. Seagate’s nearline product revenue nearly doubled year-over-year, due to strong demand, particularly from cloud clients. Mass capacity products continue to drive growth, with nearline shipments up 9% sequentially to 140 exabytes. Total December quarter revenue was $2.33 billion, with non-GAAP gross margin increasing by 220 basis points to 35.5%, representing the seventh consecutive quarter of sequential increase.
Seagate Technology Holdings plc (NASDAQ:STX) is benefiting from the ramp of its Mozaic HAMR-based platform, which has industry-leading capacities of up to 36 terabytes. Multiple cloud and hyperscale clients have already qualified these drives, paving the way for a considerable volume increase in the latter part of 2025. Management anticipates GenAI applications to be a long-term driver of mass capacity storage development, with AI-generated data expected to increase 170 times between 2024 and 2028.
Seagate Technology Holdings plc (NASDAQ:STX) also finalized the strategic acquisition of Intevac for about $96 million on March 31, 2025, which will boost its thin-film production capabilities. Meanwhile, the company continued its focus on capital discipline, generating $150 million in free cash flow and retiring $479 million in debt in early January, leaving no significant obligations until late fiscal 2027.
Despite temporary supply difficulties in the March quarter, Seagate Technology Holdings plc (NASDAQ:STX) is still well-positioned, with robust customer demand and an attractive technology roadmap. Given its critical position in facilitating AI-driven mass storage needs, Seagate appears to be an overlooked tech stock poised to benefit from the next wave of data expansion.
Overall, Seagate Technology Holdings plc (NASDAQ:STX) ranks first on our list of the overlooked tech stocks to buy now. While we acknowledge the potential of STX, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than STX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
