11 Oversold Tech Stocks to Buy According to Hedge Funds

7. Enphase Energy, Inc. (NASDAQ:ENPH)

RSI: 36.86

Number of Hedge Fund Holders: 39

Enphase Energy, Inc. (NASDAQ:ENPH) is an energy technology company specializing in microinverter-based solar-plus-storage systems. Its core products are centered around solar energy management for residential and commercial customers.  ENPH’s systems are compatible with most solar panels, which makes it one of the leaders in the market. The company also offers electric vehicle charging solutions through its ClipperCreek brand.

Enphase Energy, Inc. (NASDAQ:ENPH) reported a 35% YoY revenue growth in the recent Q1 2025. The company’s US revenue decreased 13% QoQ due to seasonality and softening demand, while European revenue increased 7%, driven by FlexPhase battery shipments in Germany. The company faced challenges from new tariffs, particularly on batteries sourced from China, which is expected to impact gross margins by 2% in Q2 2025 and 6-8% in Q3 2025, though they plan to fully offset this impact by Q2 2026 through supply chain diversification efforts.

Looking ahead, Enphase Energy, Inc. (NASDAQ:ENPH) is focusing on several growth initiatives, including the launch of its new-generation battery, which delivers the lowest installation cost of any ENPH product to date. ENPH is also expanding its served available market in Europe with the introduction of a new battery with backup, a new EV charger, and the upcoming IQ Balcony Solar Kit. Additionally, the company prepares to launch a new generation microinverter, which is expected to unlock a 10-gigawatt opportunity in commercial solar while driving cost per watt improvements across its residential business. With this move, management expects to significantly improve the payback period for clients and thus fuel demand for residential solar solutions. As the US administration hinted towards potentially negotiating lower tariffs with China, ENPH’s headwinds are likely to vanish, making the company one of the best oversold stocks to consider.