On August 1, Keith Lerner, the Co-Chief Investment Officer at Truist Wealth, and Alan McKnight, the CIO at Regions Wealth Management, appeared on CNBC’s Worldwide Exchange to discuss the markets. They noted that the markets may pull back amid tariff uncertainty, but long-term tech trends remain solid. About the recent tariff situation, where a new rate was announced for the August 1 deadline, giving markets a few days to adjust, McKnight responded by saying that it felt like Groundhog Day and that the market was trying to react and work through the new circumstances. He expressed hope that a resolution similar to what was seen with Japan, the Eurozone, and South Korea would be reached with Mexico and Canada, bringing the tariff rate down from 35%. In the interim, he believes companies will try to navigate the situation to avoid bearing the full cost of the new tariffs.
It’s important to note that there’s continued strength in the tech sector, with big bets on AI from companies within the MAG7, which are being rewarded by Wall Street. Lerner confirmed that his firm still likes tech, calling the underlying theme of the current bull market AI and tech, or the big T. He contrasted this with the other T, which is tariffs, and noted that the AI theme was pushed back earlier in the year due to tariffs. Despite a potential economic slowdown or more tariff-related news, he believes the secular themes for tech remain positive. He did caution that tech stocks are a bit extended on a short-term basis but would look to add to the sector on any pullback. He recommended staying overweight in tech, communication services, and industrials.
That being said, we’re here with a list of the 11 cheap technology stocks to buy now.
An executive in a suit checking a bank of computers symbolizing the technology of the financial services industry.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the top cheap tech stocks with a forward P/E ratio under 20 as of August 5. We then selected the 11 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.
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).
11 Cheap Technology Stocks to Buy Now
11. EPAM Systems Inc. (NYSE:EPAM)
Forward P/E Ratio as of August 5: 14.06
Number of Hedge Fund Holders: 46
EPAM Systems Inc. (NYSE:EPAM) is one of the cheap technology stocks to buy now. Earlier on July 16, EPAM Systems announced that its open-source GenAI enterprise platform, called DIAL, is now available in the new AI Agents and Tools category of AWS Marketplace. The new availability allows customers to use their existing AWS accounts to find, purchase, and deploy EPAM’s DIAL platform.
DIAL is an agentic AI orchestration platform that enables businesses to integrate powerful LLMs, such as Anthropic Claude from AWS Bedrock, into their existing workflows. It supports agentic workflows and data-native reasoning, while also addressing key challenges of deploying AI at scale in production across different business functions.
The platform also introduces new methods for working with both structured and unstructured data using AI, and promotes collaboration throughout entire organizations. EPAM recently announced the DIAL 3.0 Platform, which emphasizes a modular, open-source approach to enterprise AI adoption, balancing innovation speed with long-term control, interoperability, and responsible governance.
EPAM Systems Inc. (NYSE:EPAM) provides digital platform engineering and software development services worldwide.
10. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Forward P/E Ratio as of August 5: 13.68
Number of Hedge Fund Holders: 49
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is one of the cheap technology stocks to buy now. On July 30, Cognizant and WRITER, which is a global leader in agentic AI for the enterprise, announced a partnership to accelerate AI-driven transformation for businesses. The partnership aims to help global enterprises, particularly those in highly regulated sectors, deploy secure and specialized AI agents at scale.
The platform is built on WRITER’s proprietary Palmyra models, which are fine-tuned for business and industry-specific use cases, and includes an enterprise-grade knowledge retrieval system to ensure accuracy and context-rich information.
The collaboration will allow Cognizant to offer clients use cases powered by WRITER’s pre-built industry agents and custom-created agents through WRITER’s Agent Builder. The offering will also include services for enablement, change management, and responsible AI adoption. The partnership complements Cognizant’s existing AI strategy, including its Cognizant Agent Foundry framework.
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a professional services company that provides consulting and technology, and outsourcing services in North America, Europe, and internationally.
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