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.
8. Health Catalyst, Inc. (NASDAQ:HCAT)
Forward Price-to-Earnings: 18.76
Number of Hedge Funds: 25
Health Catalyst, Inc. (NASDAQ:HCAT), 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.
On July 1, 2025, Wells Fargo set its price target at $10 for Health Catalyst, Inc. (NASDAQ:HCAT), maintaining a ‘Buy’ rating. HCAT’s shares are currently trading at around $4, implying a significant upside as per the analyst.
The analyst believes that Health Catalyst, Inc. (NASDAQ:HCAT) is valued much lower than its peers, which sets the company up for future growth through consistent performance. The firm expects positive growth in the company’s bookings in the upcoming Q2, which is likely to boost investor sentiment.
Meanwhile, the company’s strong revenue visibility for 2025 is noted, along with an anticipated acceleration in its DOS client growth. Looking ahead, the analyst expects the company to improve its dollar-based retention rate, enhancing its customer loyalty and revenue base. Legislative uncertainties, on the other hand, are expected to be short-term concerns with minimal long-term impact. Lastly, the company’s EBITDA growth was also highlighted as a key reason for the optimistic outlook.
With Health Catalyst Ignite, a cloud-based data and analytics platform, Health Catalyst, Inc. (NASDAQ:HCAT) serves healthcare entities, enhancing clinical, financial, and operational results. It is included in our list of the best cloud stocks.
7. BigCommerce Holdings, Inc. (NASDAQ:BIGC)
Forward Price-to-Earnings: 18.32
Number of Hedge Funds: 27
With a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, BigCommerce Holdings, Inc. (NASDAQ:BIGC) makes it onto our list of the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.
On July 23, 2025, BigCommerce Holdings, Inc. (NASDAQ:BIGC) announced the launch of ‘Branch of the Future’, which is an ecommerce accelerator tailored for the UK Building materials sector. Developed in collaboration with digital agency Brave Bison, Pimberly, and construction consultant The Journey, the solution enables merchants to digitize operations and satisfy next-gen buyer needs.
Integrating BigCommerce Holdings, Inc. (NASDAQ:BIGC)’s B2B Edition, Brave Bison’s ready-to-deploy ecommerce solution, and Pimberly’s Product Information Management platform, this accelerator offers customer-specific pricing, quoting, real-time inventory, and streamlined workflows, boosting efficiency and sales. It helps modernize traditionally offline trade buying, reducing costs for merchants, while strengthening customer relationships.
With its leading open Software-as-a-service (SaaS) platform for e-commerce, BigCommerce Holdings, Inc. (NASDAQ:BIGC) enables merchants to build, manage, and scale online stores across a diverse range of sales channels. It is included in our list of the best cloud stocks.
6. Jamf Holding Corp. (NASDAQ:JAMF)
Forward Price-to-Earnings: 9.25
Number of Hedge Funds: 27
Jamf Holding Corp. (NASDAQ:JAMF), 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.
On July 21, 2025, Barclays decreased its price target on Jamf Holding Corp. (NASDAQ:JAMF) from $15 to $10, maintaining an ‘Equal Weight’ rating. However, the analyst expresses optimism about how software companies are positioned for the upcoming Q2 earnings. This optimism is driven by market feedback and sales data, which demonstrated improved performance in May and June following a weak April. As such, the analyst expects strong Q2 results for Jamf Holding Corp. (NASDAQ:JAMF), with potential for upward guidance revisions.
Meanwhile, on July 17, 2025, JPMorgan also decreased its price target on Jamf Holding Corp. (NASDAQ:JAMF) from $15 to $12, maintaining an ‘Overweight’ rating. Justifying the bullish rating, the analyst spoke about strong cloud spending trends that are expected to drive upside in the second half of 2025. However, it cited concerns about increased exposure to macro-sensitive customer segments, justifying the downward revision of its price target.
Thus, analysts see improving momentum, yet advise caution for investors amid market uncertainties that may impact customer base and future performance of Jamf Holding Corp. (NASDAQ:JAMF).
Serving Apple devices, Jamf Holding Corp. (NASDAQ:JAMF) delivers cloud-based management and security solutions, automating the device lifecycle, identity and access management, and endpoint protection within the IT landscape. It offers a cloud-hosted Jamf Pro MDM server, enabling scalable, globally accessible management of Apple devices. It is included in our list of the best cloud stocks.
5. Nokia Oyj (NYSE:NOK)
Forward Price-to-Earnings: 13.59
Number of Hedge Funds: 29
With a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, Nokia Oyj (NYSE:NOK) makes it onto our list of the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.
On July 22, 2025, Nokia Oyj (NYSE:NOK) released its revised full-year 2025 financial outlook ahead of its Q2 results. Based on the revised guidance, the company expects a comparable operating profit of $1.88–2.47 billion, down from the previous guidance range of $2.24-2.83 billion. This revision in operating profit guidance is attributed to a weaker US dollar and ongoing tariff impacts.
Now, Nokia Oyj (NYSE:NOK) bases its projections on a EUR: USD exchange rate of 1.17, in contrast to 1.04 in January. The currency risk is expected to have a negative impact of $270.79 million on profits. Meanwhile, tariffs are expected to negatively impact earnings by $58.87-94.19 million.
Meanwhile, on July 24, 2025, Nokia Oyj (NYSE:NOK) reported its performance for Q2 that ended June 30, 2025. The company’s comparable net sales were flat at EUR 5.35 billion. Sales declined 1% on a constant currency basis due to a 13% decline in Mobile Networks. Meanwhile, the Network Infrastructure and Cloud & Network Services segments recorded growth of 8% and 14%, respectively.
A venture fund loss of $58.79 million contributed to a 6.6% decline in operating margin, leading to a decrease in EPS from $0.07 per share in Q2 2024 to $0.05 in Q2 2025. Furthermore, free cash flow stood at $103.47 million, declining due to debt repayment.
Operating through Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies segments, Nokia Oyj (NYSE:NOK) offers mobile, fixed, and cloud network solutions across the globe. It is included in our list of the best cloud stocks.
4. Xerox Holdings Corporation (NASDAQ:XRX)
Forward Price-to-Earnings: 7.29
Number of Hedge Funds: 29
Xerox Holdings Corporation (NASDAQ:XRX), 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.
Xerox Holdings Corporation (NASDAQ:XRX) announced critical updates to its Xerox PrimeLink B9100 Production Press Series and Xerox FreeFlow Workflow Software on July 16, 2025.
According to the updates to the PrimeLink B9100 Production Press Series, efficiency is boosted and secure transactional printing is enabled with the new dual oversized high-capacity feeders and Fiery server. Furthermore, an optional Job Vitals Light feature is added, providing instant job status visibility across the production floor.
Meanwhile, for FreeFlow Workflow Software, the PowerSplit Accelerator is included in FreeFlow Core, enabling faster processing of complex jobs, while Vision Connect now delivers enhanced data reporting, predictive monitoring, and interactive insights.
With the help of its Xerox Workplace Cloud and FreeFlow platforms, Xerox Holdings Corporation (NASDAQ:XRX) utilizes cloud technology, offering secure print management, authentication, and mobility workflows. It is included in our list of the best cloud stocks.
3. Sabre Corporation (NASDAQ:SABR)
Forward Price-to-Earnings: 11.55
Number of Hedge Funds: 32
With a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, Sabre Corporation (NASDAQ:SABR) makes it onto our list of the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.
A multi-year agreement was finalized on July 17, 2025, between Sabre Corporation (NASDAQ:SABR) and Christopherson Business Travel. Under this agreement, SABR was appointed the corporate travel management company’s primary technology partner. This integrates SABR’s strengths in content aggregation, automation, and AI-powered retailing with Christopherson’s mission of delivering efficient travel management.
Sabre Corporation (NASDAQ:SABR) cloud-native solutions, including Sabre Red 360, Sabre APIs, and Automated Exchanges & Refunds, will help Christopherson improve efficiency and enhance its client service. Meanwhile, it will utilize SABR’s Trip Proposal, Market Intelligence, and Agency Retailer tools to power personalized experiences and scalable retailing across sectors.
This collaboration will also support Christopherson’s proprietary Andavo platform, enabling real-time orchestration and multi-source content access, and will bolster both companies’ efforts toward modernization and enhanced client value.
Sabre Corporation (NASDAQ:SABR) helps travel agencies automate operations, integrate NDC content, and scale efficiently using cloud-based platforms such as PowerSuite Cloud. It is included in our list of the best cloud stocks.
2. Harmonic Inc. (NASDAQ:HLIT)
Forward Price-to-Earnings: 16.52
Number of Hedge Funds: 35
Harmonic Inc. (NASDAQ:HLIT), 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.
On July 8, 2025, Wolfe Research initiated coverage on Harmonic Inc. (NASDAQ:HLIT) with a price target of $7 and an ‘Underperform’ rating. This comes ahead of the company’s earnings release for Q2, which is scheduled for July 28, 2025. The analyst’s price target implies a downtick from the company’s current share price of $9.10. However, several other analysts, such as Rosenblatt, Needham, and Barclays, have recently given bullish ratings on the company.
Despite a sluggish outlook, analysts project strong growth in 2025, where they project a revenue growth of 30.29%, taking the total expected revenue from $645.2 million in 2025 to $840.6 million in 2026. This growth is driven by Harmonic Inc. (NASDAQ:HLIT)’s strategic partnerships and technological innovation, as its recent deals with Vectra and Cignal TV demonstrate its growing global footprint in the realm of broadband and video streaming. Furthermore, its innovative PTP-less DAA deployment and cloud-native VOS360 platform are expected to bolster its competitive edge.
While there have been delays in the short-term rollouts, management remains optimistic. Looking ahead, the analysts expect an improved second half of 2025 and a strong 2026 performance, driven by strong demand amid the company’s collaboration with CUJO AI that will enhance broadband connectivity.
With the help of its software and SaaS platforms, Harmonic Inc. (NASDAQ:HLIT) offers cloud-based broadband and video solutions, serving operators and media companies by delivering high-speed internet and advanced streaming services. It is included in our list of the best cloud stocks.
1. Alight, Inc. (NYSE:ALIT)
Forward Price-to-Earnings: 9.25
Number of Hedge Funds: 41
With a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, Alight, Inc. (NYSE:ALIT) makes it onto our list of the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.
Maintaining a ‘Buy’ rating, DA Davidson reiterated its price target of $10 on Alight, Inc. (NYSE:ALIT). This represents a potential upside of 75.4% as the company’s shares are currently trading at $5.70. This reiteration comes ahead of Q2 results, which are scheduled for release on August 5, 2025.
The analyst expects that Alight, Inc. (NYSE:ALIT) will meet or slightly exceed expectations with its Q2 results. There has been some skepticism surrounding the company’s profitability as it has not been profitable over the past year. However, analyst projects earnings per share (EPS) of $0.61 in 2025, reinforcing its optimism about the company’s future. Furthermore, the analyst believes that the management of Alight, Inc. (NYSE:ALIT) has been conservative in its 2025 guidance thus far, which it believes will be adjusted.
Additionally, in its Q2 2025 investor letter, Aristotle Capital Boston, LLC stated the following in its ‘Small Cap Equity Strategy’:
“Alight, Inc. (NYSE:ALIT), operates a cloud-based platform that provides human capital management and benefits administration solutions to mostly Fortune 500 companies. We believe the company has the opportunity to grow its business through the expansion of existing client relationships along with attracting new clients to their platform. Self-help initiatives implemented by the new CEO coupled with technological enhancements to the platform are expected to streamline operational costs and improve margins on a go-forward basis.”
Alight, Inc. (NYSE:ALIT), a cloud-based integrated digital human capital and business solutions provider, offers Alight Worklife, which is a cloud-based employee engagement platform. It is included in our list of the best cloud stocks.
While we acknowledge the potential of ALIT to grow, 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 ALIT and that has 100x upside potential, check out our report about this cheapest AI stock.
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