The technology sector has provided great returns since the emergence of generative AI, and it was expected to continue performing strongly this year as well. However, fears about infrastructure spending have once again emerged, alongside speculation that certain domains, such as software engineering, face an existential threat due to extremely powerful AI. This is driving down the tech sector.
On 17th February, this sentiment was echoed by Nick Evans, a fund manager at Polar Capital. He believes only a few firms will survive the emergence of AI.
“We think application software faces an existential threat from AI”
Evans believes AI coding tools have turned clients into competitors for many companies, as it becomes easier to develop tools internally. This is not the first time the emergence of a new technology has disrupted markets. In the past, the arrival of personal computing, e-commerce, and online streaming, among other things, disrupted industries but also launched new ones. This is why investors aren’t giving up on tech stocks, despite them not working out for investors so far this year.
Marta Norton, Chief Investment Strategist at Empower, pointed this out in a Reuters report on February 20:
“It’s kind of a perplexing market. Everything that worked in 2025 is now having a hard 2026. And what was left behind in 2025 is working in 2026.”
For those who would rather see this market behaviour as an opportunity, we decided to focus on stocks that were beaten down and trading at their 52-week lows. Our list of 11 best 52-week low technology stocks to buy now achieves exactly this purpose.
Source: Pixabay
Our Methodology
To compile our list of the 11 best 52-week low technology stocks to buy now, we looked at companies in the technology sector with a market cap of at least $2 billion. We then filtered for companies that were trading within a 0% to 3% range of their 52-week lows. From this pool, we selected 11 companies with the highest potential upside, based on their consensus price targets, and ranked them in ascending order. We also included data on hedge fund holdings in these companies based on Insider Monkey’s database, as of Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: All share price data in the article is as per market close on February 19.
11. Blackbaud, Inc. (NASDAQ:BLKB)
Potential Upside: 21.19%
Number of Hedge Fund Holders: 34
Robert W. Baird maintained its Neutral rating on Blackbaud, Inc. (NASDAQ:BLKB) and lowered its price target on February 11. The firm lowered its price target on the stock to $60 from $70. The adjusted price target implies an additional 25.76% upside from current levels, which is equal to the median Wall Street analyst’s upside estimate among 6 analysts covering the stock. The rating came as the firm updated its financial model following the company’s fourth-quarter financial results. Q4 results showed strong performance, and the management provided an encouraging outlook for 2026.
In addition to Robert W. Baird, Raymond James also lowered its price target on Blackbaud, Inc. (NASDAQ:BLKB) from $85 to $60 while maintaining its Outperform on February 10. The analyst said that the company delivered better-than-expected fourth-quarter results and provided the 2026 outlook above consensus estimates. Moreover, the company also introduced a long-term plan aiming for mid-single digit growth through 2030, while continuing to improve margins. According to the firm, Blackbaud, Inc. (NASDAQ:BLKB) stands out as a leader in its vertical software market despite weak sentiment around the software stocks. The analyst highlighted its compelling valuation, broad product portfolio, and AI initiatives with measurable and clear returns as key factors that make it an attractive investment option.
Blackbaud, Inc. (NASDAQ:BLKB) operates as a provider of cloud software and services across the United States and internationally. It provides fundraising and engagement solutions, financial management solutions, grant & award management solutions, and education solutions. The company was incorporated in 1981 and is based in Charleston, South Carolina.
10. Qualys, Inc. (NASDAQ:QLYS)
Potential Upside: 30.81%
Number of Hedge Fund Holders: 31
On February 9, UBS analyst Roger Boyd lowered the firm’s price target on Qualys, Inc. (NASDAQ:QLYS) from $150 to $140 while maintaining a Neutral rating. The firm’s revised price target reflects an additional 35.6% upside from the current levels. This upside is consistent with the median Wall Street analysts’ upside of 30.81% according to 26 analysts covering the stock.
Prior to the price target adjustment, Qualys, Inc. (NASDAQ:QLYS) reported its fourth-quarter FY 2025 results on February 6. The company posted a revenue growth of 10% for the quarter. For Q4, revenue came in at $175.3 million, with Channel partners making up 51% of the total revenue. However, channel revenue rose 17%. Revenue from International markets grew 15%, beating the domestic market revenue growth of 6%. The company generated $74.9 million in free cash flows during the quarter.
Adjusted EBITDA was $82.6 million while earnings were $1.87 per diluted share for the quarter. Due to an increase in sales and marketing, operating expenses reached $68.9 million, reflecting a 11% rise.
For 2026, Qualys, Inc. (NASDAQ:QLYS) projects revenue to be in the range of $717 million to $725 million, representing 7% to 8% growth. For the first quarter of 2026, revenue is estimated to range from $172.5 million to $174.5 million, indicating a 8% to 9% growth rate. For Q1, earnings are expected in a range of $1.76 to $1.83 per share.
Joo Mi Kim, CFO at Qualys, Inc. (NASDAQ:QLYS), commented on the guidance:
“This guidance assumes no material change in our net dollar expansion rate with moderate growth contribution from new business in 2026.”
Qualys, Inc. (NASDAQ:QLYS) operates as a cloud-based platform provider. The company delivers security, information technology (IT), and compliance solutions across the United States and internationally. It was founded in 1999 and is based in Foster City, California.
9. Amdocs Limited (NASDAQ:DOX)
Potential Upside: 35.35%
Number of Hedge Fund Holders: 34
Barclays analyst Tavy Rosner reiterated an Overweight rating on Amdocs Limited (NASDAQ:DOX) on February 4. However, the analyst lowered the firm’s price target on the stock from $111 to $92. The analysts called the company’s first-quarter results resilient and highlighted several successes in the major strategic areas. At the same time, broader economic conditions are putting pressure on Amdocs’ markets. The analyst said in a research note that the investors are expected to focus on the company’s policy of returning double-digit earnings to shareholders.
In addition to Barclays, Stifel also shared its views on Amdocs Limited (NASDAQ:DOX) in response to the earnings report. On February 4, Stifel reduced its price target on the stock from $97 to $88 while keeping a Buy rating. The firm’s revised price target offers a further 25.9% upside from the current levels. According to the analyst, the most significant development during the quarter was the announcement of a five-year contract renewal with T-Mobile (TMUS). The analyst said that the delay in renewing this deal had been a major concern for investors. This renewal supports confidence in the company’s ongoing business relationships.
Amdocs Limited (NASDAQ:DOX) provides services and software to entertainment, communications, media, and other service providers worldwide. The company develops, implements, designs, supports, markets, and operates an open and modular cloud offering. It also offers CES25, Amdocs Monetization Suite, and GenAI agents.
8. Infosys Technologies Ltd (NYSE:INFY)
Potential Upside: 37.46%
Number of Hedge Fund Holders: 29
On February 17, Infosys Technologies Ltd (NYSE:INFY) and Antropic announced a collaboration to build AI agents for multiple industries. Infosys Topz, a set of services and solutions based on generative AI, will be integrated with Anthropic’s Claude Code and other Claude models to aid in software development.
Through this collaboration, Infosys is set to utilize a large Indian population that already uses Claude tools. The country is Anthropic’s second-largest market when it comes to Claude. Moreover, half the usage in India revolves around building apps and production software. Infosys wants to be among the first-movers in capturing this whole market, an advantage that can help the company further strengthen its already strong relationship with global companies. CEO of Infosys, Salil Parekh, said as much on the occasion:
“From modernizing financial services with intelligent risk management and compliance, to enabling engineering businesses to lead with AI-driven design and manufacturing, the goal is to leverage the joint expertise of Infosys and Anthropic to accelerate AI value realization for global enterprises.”
Infosys Technologies Ltd (NYSE:INFY) is a Bangalore, India-based company that offers digital and consulting services along with end-to-end business solutions. It helps businesses adopt AI, cloud, and other similar technologies. Its end-markets include retail, energy, and manufacturing industries, among others. The company was founded in 1981.
7. Accenture Plc (NYSE:ACN)
Potential Upside: 40.03%
Number of Hedge Fund Holders: 66
On February 11, Accenture Plc (NYSE:ACN) announced Rachel Frey as its new Chief Communications Officer (CCO). This is a newly created role with Frey reporting directly to CEO Julie Sweet. She was previously the head of Corporate Communications. In her new role, she will work on global media relations, public affairs communications, crisis management, and internal communications, among other responsibilities.
The stock’s nearly 20% downfall in the last month hasn’t gone unnoticed. Baird commented on this on February 3, calling ACN one of the more diversified companies with limited reliance on any single offering. This makes the stock attractive on this pullback, according to the financial services firm. The pullback now means the median analyst price target of $301 for the stock, based on 30 analyst ratings, offers a 40.03% upside. The stock is currently trading just above the lowest Wall Street target price of $210.
Accenture Plc (NYSE:ACN) helps global businesses and organizations optimize operations, increase revenue, and deliver similar services that create value at scale. It serves three main geographies: North America, EMEA, and Growth Markets. The firm is headquartered in Dublin, Ireland.
6. Q2 Holdings, Inc. (NYSE:QTWO)
Potential Upside: 45.85%
Number of Hedge Fund Holders: 28
On February 11, RBC Capital maintained its Sector Perform rating on Q2 Holdings, Inc. (NYSE:QTWO) while lowering its price target. Analyst Daniel Perlin reduced the firm’s price target on the stock from $86 to $67. The analyst said that the company’s Q4 results showed improving margins and a strong bookings performance. However, an initial outlook for fiscal 2027 subscription revenue growth of 12.5% to 13% put pressure on the stock. According to the firm, the more conservative outlook, along with the broader negative sentiment across the software space, contributed to the recent pullback in the shares.
In the fourth quarter, Q2 Holdings, Inc. (NYSE:QTWO) reported total revenue worth $208.2 million, representing a 14% year-over-year and 3% quarter-over-quarter increase. Full-year revenue came in at $794.8 million, up 14% from the last year. Subscription revenue accounted for 82% of total revenue and grew by 17% for the year. Total Annual Recurring Revenue (ARR) reached $921 million, representing a 12% annual growth, while subscription ARR rose 14% to $780 million. Gross margin grew to 58.6% during the quarter, slightly up from 57.4% in the previous year. However, for the full-year gross margins went up from 56% to 58%. Reflecting a solid 93% conversion rate, the company generated $173 million in free cash flow during the year.
Q2 Holdings, Inc. (NYSE:QTWO) operates as a provider of digital solutions. The company offers its solutions to financial technology companies, alternative finance companies (Alt-FIs), financial institutions, and FinTechs across the United States. It also provides a Digital Banking Platform and risk and fraud solutions.
5. AppFolio, Inc. (NASDAQ:APPF)
Potential Upside: 51.66%
Number of Hedge Fund Holders: 40
AppFolio, Inc. (NASDAQ:APPF) secured a $150 million senior secured revolving credit facility with PNC Bank on February 6. However, the loan comes with strict restrictions that could limit the company’s strategic and financial flexibility. These rules limit AppFolio, Inc. (NASDAQ:APPF) from taking on additional debt, making major investments, selling assets, granting liens, returning capital to shareholders, and engaging in certain transactions with affiliates. The facility also sets a limit on the company’s Consolidated Net Leverage Ratio. These limits could make it harder for the company to quickly respond to market changes or pursue growth opportunities. If the company fails to meet these requirements or misses a payment, it could cause a default. In that case, lenders could demand immediate repayment of all outstanding amounts and stop providing additional funding.
However, analysts remain optimistic despite the new credit facility’s restrictions, as the rating maintained on the same day suggests. On February 6, UBS analyst Seth Gilbert CFA reaffirmed a Buy rating on AppFolio, Inc. (NASDAQ:APPF), along with a price target of $260. The firm’s price target implies a further 47.797% upside from the current levels. This upside is consistent with the median Wall Street analyst’s upside of 52% among 8 analysts covering the stock.
AppFolio, Inc. (NASDAQ:APPF) operates as a provider of a cloud-based platform. The company offers its platform to the real estate industry across the United States. Its platform helps with marketing, accounting, maintenance, reporting, workflow automation, leasing, and communication services. It serves property investors, vendors, potential residents, property managers, and residents.
4. The Descartes Systems Group Inc. (NASDAQ:DSGX)
Potential Upside: 70.25%
Number of Hedge Fund Holders: 31
Scotiabank lowered its price target on The Descartes Systems Group Inc. (NASDAQ:DSGX) from $115 to $95 while reaffirming an Outperform rating on February 11. The firm’s adjusted price target suggests an additional 43.77% upside from current levels. This is also the lowest Wall Street price target, as per 15 analysts covering the stock. According to the analyst, the software stocks have had a rough start to 2026. However, he highlighted that there are select opportunities for certain stocks to outperform within the software sector.
Earlier on January 12, Barclays upgraded The Descartes Systems Group Inc. (NASDAQ:DSGX) from Equal Weight to Overweight while slightly reducing its price target from $106 to $105. The analysts view the company’s third-quarter FY2026 results as a positive turning point that has been largely overlooked. They believe that the company is moving beyond the effects of uncertain macroeconomic conditions. The firm also pointed to The Descartes Systems Group Inc.’s (NASDAQ:DSGX) ongoing platform development, which sets it apart from competitors and improves network effects.
Analyst Lenschow and his team commented on the outlook of the company:
“Hence, we see potential for Descartes to outperform in CY26 and discuss three points supporting our improved company outlook.”
The Descartes Systems Group Inc. (NASDAQ:DSGX) is a provider of global logistics technology solutions. The company offers a wide range of solutions, including transportation management; customs and regulatory compliance; routing, mobile, and telematics; shipping, and fulfillment; broker and forwarder enterprise systems; global trade intelligence; and B2B messaging and connectivity services.
3. ServiceNow Inc. (NYSE:NOW)
Potential Upside: 74.27%
Number of Hedge Fund Holders: 104
On February 9, Wedbush added ServiceNow Inc. (NYSE:NOW) back to its IVES AI 30 list after dropping it in December 2025. The firm said that the recent sell-off in software stocks has been overdone. Analysts led by Dan Ives argued that the view that large software companies such as ServiceNow Inc. (NYSE:NOW) are structural losers in the AI era is misguided.
Wedbush believes the AI Revolution is still in its early stages and represents a long-term growth cycle that could unfold over a 10-year cycle. Although AI may create some short-term challenges for software stocks, the firm said that the market is overestimating the risks.
Even though ServiceNow Inc.’s (NYSE:NOW) stock has been at the center of the recent sell-off, the analyst said they continue to view the company as benefiting from the AI revolution. According to analysts, the market is missing key aspects of the company and is focusing too much on short-term concerns.
ServiceNow Inc. (NYSE:NOW) provides cloud-based and AI-embedded end-to-end workflow automation solutions for enterprises. The company is located in Santa Clara, California, and was founded in June 2004 by Frederic B. Luddy.
2. Sportradar Group AG (NASDAQ:SRAD)
Potential Upside: 83.63%
Number of Hedge Fund Holders: 31
On February 9, Sportradar Group AG (NASDAQ:SRAD) announced that it had entered into a multi-year agreement with NBC. The deal involves the provision of data as well as broadcast technology to the broadcasting company for the NBA seasons 2025-26 and 2026-27.
The technology in question is the GameFrame technology, which uses AI and live player-tracking data to display on-screen graphics during live games. As a result, commentators can give real-time insights into things like player positioning or explain certain plays during the game.
This agreement is a multi-year one involving all NBC Sports regional networks throughout the United States. Brian Josephs, VP of the Americas region at Sportradar, had this to say on the occasion:
“This agreement builds upon our long-standing relationship with NBC and reflects how we continue to expand the ways we support their live sports coverage”
The development is likely to draw analyst attention, with many already bullish on the company’s prospects. According to CNN’s analyst ratings compilation, the stock currently has a median upside of 83.63%.
Sportradar Group AG (NASDAQ:SRAD) provides sports technology solutions to media companies, broadcasters, and betting companies, among others. It has agreements with multiple major sporting bodies across the world, including UEFA, NBA, and NHL.
1. GoDaddy Inc (NYSE:GDDY)
Potential Upside: 94.54%
Number of Hedge Fund Holders: 49
On February 6, Trevor Young of Barclays maintained his Buy rating on GoDaddy Inc (NYSE:GDDY). He also maintained a $200 price target on the stock, suggesting it could more than double from here.
On the company’s blog, the firm boasted its PGen AI system, which helps recommend domain names to users. As more domains get registered every day and therefore become unavailable, the pool of available domain names is continuously shrinking. To improve user experience, the company is utilizing the PGenAI Small Language Model (SLM), which integrates with the company’s domain datasets and monitors customer behavior to recommend domain names to users in real-time, even for first-time searchers. This highly personalized domain name search system is expected to drive the company’s sales from domain names in the future.
GoDaddy also announced on February 4 that it will release its fiscal fourth quarter earnings report on Tuesday, February 26. The consensus EPS estimate is $1.58, with a revenue estimate of $1.27 billion for the quarter.
Godaddy Inc (NYSE:GDDY) is a domain registrar and web hosting services provider based in Tempe, Arizona. It is the fifth-largest web host in the world by market share and is often a household name among entrepreneurs and small businesses.
While we acknowledge the potential of GDDY 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 GDDY and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: Goldman Sachs Value Stocks: 10 Stocks to Buy and 14 Best Precious Metals Stocks to Buy Now.
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.
