In this article, we will take a look at some of the best technology stocks that offer attractive upside to investors. On May 8, Morningstar reported that after yet another successful earnings season, U.S. technology stocks gained significant attention as the sector appears to be offering great value to investors. According to Morningstar, the artificial intelligence theme is currently trading at its biggest discount since 2019. This comes after prior worries over stretched valuations in the U.S. equity markets in 2024 and 2025. The “Magnificent Seven” had reached high valuations due to strong interest in artificial intelligence.
It is pertinent to note that the forward price-to-earnings ratio for the information technology sector was over 30x back in October 2025. Since then, however, stock prices have been supported by a string of successful earnings seasons that have raised earnings and decreased valuation multiples.
The most recent research also highlights the continued discussions about future demand, with some analysts doubting hyperscalers’ ability to sustain high levels of capital spending over time. However, demand for semiconductors, data centers, and associated infrastructure remains high, supporting the broader narrative for technology earnings. The industry remains heavily reliant on artificial intelligence, and tech stocks continue to draw investor attention.
With that background, let’s explore the 10 Technology Stocks Offering More Than 50% Upside.
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Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed technology companies with market capitalizations above $2 billion and at least 50% upside potential, according to consensus, as of the June 1 close. Finally, we selected 10 stocks with the highest upside potential and ranked them in ascending order.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Itron Inc. (NASDAQ:ITRI)
Itron Inc. (NASDAQ:ITRI) is one of the 10 technology stocks offering more than 50% upside.
On May 26, Itron Inc. (NASDAQ:ITRI) announced the expansion of its strategic collaboration with Hunter Water. The purpose of this partnership is to help accelerate the utility’s digital water transformation through its formalized Digital Metering Pilot Program. It uses advanced data tracking to reduce non-revenue water loss and radically improve water network management.
At the same time, the program makes it possible for consumer-side consumption transparency to boost long-term conservation initiatives. Itron Intelis wSource NB-IoT ultrasonic water meters are specifically integrated as part of the utility’s deployment of a diversified asset mix as a core operational phase. Additionally, these deployed devices will be managed through Temetra, Itron’s cloud-based, multi-vendor, multi-commodity meter data management solution, which is already in use by the utility.
Apart from these recent developments, analyst ratings also indicate promising prospects for the stock. Back on April 29, Roth Capital analyst Chip Moore updated his view of Itron Inc. (NASDAQ:ITRI) after the company reported its first quarter earnings and shared a lower second quarter forecast relative to market consensus. Moore maintained his Buy rating on the shares. He decreased the firm’s price target from $150 to $136, which still results in an upside potential of almost 65%.
Moore noted that due to regulatory issues and complex project timelines, the near-term revenue growth is experiencing a temporary slowdown. The analyst expects that Itron’s shift towards an asset-light model will eventually improve the market sentiment and business margins despite such delays.
Itron Inc. (NASDAQ:ITRI) operates as a tech-based company offering a range of complete solutions to manage water, energy, and smart city functions. Its product portfolio includes communication devices, hardware, and various software products. It also provides analytical services to its clients through statistical modeling, AI, and machine learning.
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