In this article, we will look at the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.
The cloud market is undergoing rapid growth due to rising demand from industries adopting artificial intelligence (AI) technologies. One of the tech giants recently announced a significant increase in its capital expenditure forecast for 2025, projecting a total of $85 billion. Previously, the forecasted expenditure stood at $75 billion. The reason? A dire need for expanded infrastructure to meet the surging demand for cloud services. Its cloud services experienced a 32% revenue boost, reaching $13.6 billion in Q2.
This increased investment reflects the broader trend within the tech industry. Companies in the industry are expanding their infrastructure to handle the influx of AI-driven cloud demands. Consequently, there’s a trend of multi-year data center buildouts, and there’s a tight supply environment for the companies due to significant backlogs in demand.
This highlights the growing demand for cloud infrastructure resulting from AI advancements. The sector is rapidly evolving, requiring significant investments by companies to stay competitive.
With this backdrop, let’s move on to our list of the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.
A close-up of a server array powering a cloud-services system.
Methodology
To curate our list of the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds, we used the Finviz screener to note down cloud stocks trading below $10 and with a forward price-to-earnings ratio under 20x. We then ranked these stocks by hedge fund sentiment using Insider Monkey’s database, which tracks over 1,000 hedge funds. Finally, we present the list of best cloud stocks in ascending order based on the number of hedge funds.
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. Wipro Limited (NYSE:WIT)
Forward Price-to-Earnings: 19.19
Number of Hedge Funds: 19
With a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, Wipro Limited (NYSE:WIT) makes it onto our list of the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.
Following strong Q1 earnings, analyst sentiment improved, with firms like Morgan Stanley and Jefferies issuing bullish ratings on WIT. On July 18, 2025, Morgan Stanley increased its price target on the company from $3.07 to $3.30, maintaining an ‘Equal Weight’ rating. In addition to strong performance, the revision was driven by strong large-deal wins that are expected to drive its growth.
On July 17, 2025, Wipro Limited (NYSE:WIT) announced financial results for Q1 ended June 30, 2025.
Despite a 1.6% QoQ decrease, Wipro Limited (NYSE:WIT) reported revenue of $2.58 billion, an increase of 0.8% on a YoY basis. The IT services segment contributed significantly, seeing large deal bookings grow 131% YoY to $2.7 billion. Overall bookings went up by 50.7% YoY, reaching $5.0 billion.
Furthermore, Wipro Limited (NYSE:WIT) improved its operating margins by 0.8% on a YoY basis, taking them to 17.3%. Meanwhile, net income rose to $388.4 million, while operating cash flows were well-maintained at 123.2% of net income.
Adopting a cautious outlook due to macroeconomic uncertainties, Wipro Limited (NYSE:WIT) expects Q2 revenue between $2.56 and $2.61 billion.
By offering 24/7 cloud-managed services, Wipro Limited (NYSE:WIT) helps businesses optimize hybrid and public cloud environments for efficient, scalable operations through cost tracking, automation, DevOps, containers, and performance monitoring. It is included in our list of the best cloud stocks.
10. TTEC Holdings, Inc. (NASDAQ:TTEC)
Forward Price-to-Earnings: 4.95
Number of Hedge Funds: 21
TTEC Holdings, Inc. (NASDAQ:TTEC), having a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, ranks among the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.
TTEC Holdings, Inc. (NASDAQ:TTEC) is experiencing a solid stock momentum with 42.30% and 41.93% share price gains over the past three months and six months, respectively. This is driven by growing investor interest in the company’s customer engagement. Further reinforcing its momentum is its past month’s gain of 12.84%, reflecting growing confidence in the company. Along with this positive momentum, the company’s stock remains attractively priced, valued at just 0.11 times its sales.
This momentum follows the company’s Q1 results, announced on May 8, 2025. TTEC Holdings, Inc. (NASDAQ:TTEC) remained resilient with its strong operational performance, reporting a 10.6% adjusted EBITDA margin and a net income of $3.2 million, a significant improvement from the prior year. This comes despite a 7.4% revenue decrease. Furthermore, TTEC generated a positive cash flow of $21.6 million, demonstrating its strong financial health.
Although global economic uncertainties remain, TTEC Holdings, Inc. (NASDAQ:TTEC) remains optimistic about its 2025 outlook, anticipating continued growth.
Enhancing customer and employee experiences across all channels, TTEC Holdings, Inc. (NASDAQ:TTEC) delivers comprehensive cloud-based solutions including CX strategy, analytics, AI automation, omnichannel orchestration, and contact center software. It is included in our list of the best cloud stocks.
9. Yext, Inc. (NYSE:YEXT)
Forward Price-to-Earnings: 16.14
Number of Hedge Funds: 24
With a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, Yext, Inc. (NYSE:YEXT) makes it onto our list of the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.
On June 13, 2025, Yext, Inc. (NYSE:YEXT) announced the launch of Yext Research, which is a new initiative that provides deeper insights to marketers and SEO professionals into how brands are discovered in today’s complex search landscape. Leveraging over 2 billion data points, the new search initiative fills the gap in industry benchmarks and performance signals. Furthermore, the program also introduces Yext Research Partners, a collaborative model that invites experts to publish independent, data-driven insights.
This comes ahead of Yext, Inc. (NYSE:YEXT)’s solid performance for Q1 FY25, which ended on April 30, 2025. The earnings result, which was released on June 3, 2025, was marked by a 14% YoY increase in revenue that reached $109.5 million. Strong demand across the company’s platform contributed to the sales growth. Meanwhile, a record $24.7 million adjusted EBITDA was achieved, reflecting a 23% margin. A favorable currency impact and the acquisition of Hearsay Systems contributed to the company’s performance, boosting its Annual Recurring Revenue (ARR) by 15% YoY.
Yext, Inc. (NYSE:YEXT) keeps an optimistic future outlook with plans to scale up its innovative product, Yext Scout. The product, in beta, is gaining significant traction, boasting over 1,000 sign-ups and a strong response from enterprise customers.
With the Yext platform, a cloud-based solution, Yext, Inc. (NYSE:YEXT) specializes in digital knowledge management and search solutions. It is included in our list of the best cloud stocks.