In this article, we will discuss the 11 Underperforming Tech Stocks to Buy According to Analysts.
On June 23, Andrew Slimmon, Morgan Stanley Investment Management Senior Portfolio Manager, joined CNBC’s ‘Squawk Box’ to discuss the latest market trends and ongoing tech selloff, specifically addressing the recent sell-off in AI-related stocks. He characterized this market movement as healthy, explaining that while these stocks are not necessarily expensive, they have become crowded due to momentum traders, and a correction helps prevent the type of unsustainable euphoria that typically leads to poor outcomes. He noted that the shift in Fed expectations (moving from certainty regarding interest rate cuts to the possibility of hikes) has also contributed to deflating this bubble.
Despite the current volatility, Slimmon maintained that pullbacks in these AI stocks represent buying opportunities. He argued that the stocks are backed by valid earnings revision stories, as both share prices and earnings have increased significantly. He pointed out that sectors like memory and chip stocks are not currently trading at high multiples, suggesting the market is acting rationally and correctly pricing these cyclical earnings rather than succumbing to irrational euphoria. He reiterated that while there are investors driven solely by the momentum of rising prices, the fundamental earnings growth justifies holding these positions.
Our Methodology
We used screeners to identify tech and tech-enabled stocks that have declined by at least 30% over the past 3 months but for which analysts see potential to recover (with an average upside potential of at least 30%). We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on June 25.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
11 Underperforming Tech Stocks to Buy According to Analysts
11. Verra Mobility Corporation (NASDAQ:VRRM)
Number of Hedge Fund Holders: 31
Verra Mobility Corporation (NASDAQ:VRRM) is one of the underperforming tech stocks to buy according to analysts. On June 15, Verra Mobility was selected by the Los Angeles City Council to design, operate, and maintain the state’s largest speed safety program. The initiative will deploy automated enforcement systems across 125 sites identified as high-injury and crash-prone corridors, with operations expected to be fully functional by the end of 2026.
This program is part of a six-city pilot authorized by Assembly Bill 645, aiming to reduce traffic fatalities and modify driver behavior. By utilizing data-driven site selection, the city intends to address the persistent issue of speeding, which accounted for a significant portion of fatal and severe crashes in Los Angeles over recent years.
Verra Mobility Corporation brings proven experience from successful programs in cities like San Francisco and Oakland. The company will implement privacy-focused technology and partner with local minority-owned firm Morgner Construction Management for installation. The deployment reflects a broader commitment to street safety, with data from other regions suggesting significant declines in both speeding and traffic fatalities.
Verra Mobility Corporation provides smart mobility technology solutions. The company’s operations are divided into the following segments: Government Solutions, Commercial Services, and Parking Solutions.
10. Accenture (NYSE:ACN)
Number of Hedge Fund Holders: 64
Accenture (NYSE:ACN) is one of the underperforming tech stocks to buy according to analysts. On June 23, Accenture entered a multi-year partnership with the Seattle Seahawks, becoming the team’s first-ever global partner. This collaboration focuses on business transformation rather than traditional branding, leveraging Accenture’s expertise in technology, data, and AI to modernize the Seahawks’ data infrastructure, business operations, and fan engagement strategies.
A primary goal of the alliance is to support the Seahawks’ international expansion efforts. The partnership kicks off with the Accenture-presented “Trophy Tour,” which will bring the team’s Super Bowl championship hardware to fans in Germany, Australia, and Canada to capitalize on growing global interest in the NFL.
Beyond business and global growth, the partnership includes a commitment to community impact in Seattle. This deal adds to Accenture’s (NYSE:ACN) growing portfolio of sports collaborations aimed at reinventing the future of athletics through digital innovation.
Accenture is a global professional services company specializing in strategy, consulting, technology, and digital transformation. The company provides services in cloud computing, AI, security, and operations, helping organizations modernize systems and drive innovation across industries.
9. Fastly Inc. (NASDAQ:FSLY)
Number of Hedge Fund Holders: 41
Fastly Inc. (NASDAQ:FSLY) is one of the underperforming tech stocks to buy according to analysts. On June 10, Fastly and Skyfire partnered to enable secure, trusted “agentic commerce” by integrating Skyfire’s identity and payment infrastructure directly into Fastly’s edge cloud platform. This solution allows enterprises to distinguish legitimate, revenue-generating AI agents from malicious traffic in real time, transforming autonomous AI activity into an accountable and monetizable channel.
By embedding identity verification and payment validation at the network edge, the partnership enables businesses to identify the entity behind every AI request, apply dynamic pricing and usage policies, and handle high-concurrency traffic without backend re-architecting. The solution complements Fastly’s existing security tools, providing a scalable way to manage the rising volume of autonomous agents interacting with APIs and e-commerce platforms.
This integration allows companies to move beyond treating AI agent traffic solely as a security threat and instead adopt it as a new economic driver. By making trust and payment decisions in milliseconds at the edge, enterprises can securely automate complex transactions with AI agents, ensuring compatibility with their existing infrastructure while capturing value from the next wave of autonomous digital commerce.
Fastly Inc. operates a programmable, high-performance edge cloud platform that delivers faster, safer, and more scalable sites and apps to customers.
8. Endava (NYSE:DAVA)
Average Upside Potential: 72.34%
Endava (NYSE:DAVA) is one of the underperforming tech stocks to buy according to analysts. On May 21, Endava reported a challenging FQ3 2026, with revenue declining 8.4% year-over-year to £178.5 million. The company faced uneven demand and extended deal cycles, leading to significant financial impacts, including a £364.6 million goodwill impairment and a deferred tax asset charge. Consequently, the company recorded a diluted loss per share of £7.55, a sharp downturn from the profit reported in the same period last year.
Despite these near-term obstacles, leadership emphasized a successful strategic pivot toward AI-native delivery. AI-driven business grew from 5% of total revenue a year ago to 15% this quarter, bolstered by new partnerships with Mastercard and Tyl by NatWest. Management maintains that focusing on these high-growth AI initiatives and deepening client relationships will help convert current headwinds into future momentum.
Endava now anticipates FQ4 revenue to range between £181.0 million and £185.0 million, reflecting a continued year-over-year decline in constant currency. The company expects adjusted diluted EPS for the next quarter to fall between £0.09 and £0.13.
Endava is a global technology services company specializing in digital transformation, software engineering, and intelligent automation solutions. Founded in 2000 and headquartered in London, the company serves industries such as payments, financial services, and telecommunications.
7. EPAM Systems Inc. (NYSE:EPAM)
Number of Hedge Fund Holders: 34
EPAM Systems Inc. (NYSE:EPAM) is one of the underperforming tech stocks to buy according to analysts. On June 8, EPAM Systems and TGS announced a collaboration to accelerate AI adoption in the energy sector, headlined by the successful migration of TGS Imaging AnyWare to AWS. By using cloud-native infrastructure, this platform allows energy companies to process petabyte-scale seismic data faster and more cost-effectively than traditional on-premises systems, removing critical bottlenecks in exploration and production.
The collaboration centers on three core innovations: TGS Data Verse for secure, OSDU-compliant subsurface data access; cloud-native seismic imaging that uses AWS Graviton and Spot instances for enhanced performance; and EPAM’s Energy HPC Orchestrator/EHO for modular, AI-enabled workflows. These tools provide a unified environment that democratizes access to complex data and supports end-to-end subsurface analysis.
This initiative positions TGS to become an AI-native geoscience firm by combining its energy intelligence with AWS’s computational scale and EPAM Systems Inc.’s (NYSE:EPAM) cloud engineering expertise. The partnership provides energy operators with a more agile, high-performance infrastructure, enabling them to move from raw data to discovery more efficiently while reducing the capital intensity of large-scale computational projects.
EPAM Systems Inc. is a Pennsylvania-based provider of digital platform engineering and software development services. The company offers engineering, cloud, marketing, and cybersecurity services, among others.
6. Wix.com Ltd. (NASDAQ:WIX)
Number of Hedge Fund Holders: 53
Wix.com Ltd. (NASDAQ:WIX) is one of the underperforming tech stocks to buy according to analysts. On June 15, Wix partnered with Microsoft (MSFT) to integrate its “Wix Harmony” website creation platform directly into Microsoft 365 Copilot. By using the OpenAI Apps SDK, this integration allows users to generate professional, production-ready websites simply by describing their business needs, goals, and brand style via text or voice prompts within the Copilot interface.
This collaboration eliminates the need for context switching by enabling users to build, manage, and analyze their digital presence (including commerce, scheduling, and SEO) without leaving the Microsoft 365 environment. Once a site is generated, users can continue to refine their website, update business logic, and monitor performance through natural language interactions in the same chat window.
The Wix app is now available to Microsoft 365 Copilot users, who can access it by prompting “@Wix” within their chat. By bringing website creation into the flow of work, the partnership aims to simplify the entrepreneurial process, allowing businesses to launch and manage their digital operations entirely through an intuitive, chat-based interface.
Wix.com Ltd. provides a web development platform for creators, delivering services through a SaaS model. Its products include website templates, website builders, website designs, an app market, web hosting, domain names, website accessibility, a mobile app builder, and an AI website builder.
5. N-Able Inc. (NYSE:NABL)
Average Upside Potential: 88.09%
N-Able Inc. (NYSE:NABL) is one of the underperforming tech stocks to buy according to analysts. On June 23, N-able launched Shadow AI Visibility across its UEM and security platforms to help IT teams detect, classify, and monitor unauthorized AI tool usage. By providing identity-attributed insights across endpoints and networks without requiring extra agents, the solution eliminates a critical blind spot and allows organizations to move from unmanaged AI activity to informed governance.
The platform categorizes tools by vendor and usage, allowing security teams to link AI activity to specific users and devices directly within their existing management console. This enables MSPs and businesses to conduct usage assessments, enforce security policies, and better manage the risks associated with rapid, unmonitored AI adoption.
By integrating these monitoring capabilities, N-Able Inc. provides the foundation needed for responsible AI use. It ensures that security teams can identify where AI is being used in their environment, enabling them to make smarter decisions about compliance and data protection without adding operational complexity.
N-Able Inc. is a cloud-based software company that offers enterprise-oriented services, including backup and data protection, remote monitoring and management, threat hunting, and others to small- and medium-sized businesses.
4. Daqo New Energy Corp. (NYSE:DQ)
Average Upside Potential: 98.17%
Daqo New Energy Corp. (NYSE:DQ) is one of the underperforming tech stocks to buy according to analysts. On June 3, Daqo New Energy signed an agreement to establish a new manufacturing base in the Kunshan Economic and Technological Development Zone to produce energy solutions for AI data centers. The project will focus on developing and manufacturing energy storage systems, solid-state transformers, circuit breakers, and batteries.
The investment is planned in two phases, with an initial commitment of RMB 2.1 billion and a total expected investment of approximately RMB 6 billion. This expansion marks a strategic diversification for the company, aiming to use its technical expertise to capitalize on the increasing demand for specialized energy infrastructure driven by the global growth of AI.
The investment represents a diversification initiative intended to create additional growth opportunities beyond Daqo’s core polysilicon business. By moving into vertically integrated energy solutions for data centers, Daqo New Energy Corp. aims to secure new growth engines amid the ongoing global energy transition.
Daqo New Energy Corp. is a provider of polysilicon to photovoltaic product manufacturers. The company’s products are utilized in ingots, wafers, and modules for solar power solutions.
3. Kingsoft Cloud Holdings Limited (NASDAQ:KC)
Average Upside Potential: 134.13%
Kingsoft Cloud Holdings Limited (NASDAQ:KC) is is one of the underperforming tech stocks to buy according to analysts. On May 27, Kingsoft Cloud reported a strong Q1 2026, with revenue rising 37.2% year-over-year to RMB 2.703 billion. Growth was primarily fueled by a 90% surge in AI business, which now represents over half of public cloud revenue. Despite a net loss of RMB 343.7 million, the company significantly narrowed its operating loss and achieved a healthy 27.6% adjusted EBITDA margin.
To support expanding AI demand, Kingsoft Cloud invested RMB 3 billion in infrastructure during the quarter. While these expenditures and higher server costs impacted short-term gross margins, the company remains focused on its “High Quality and Sustainable Development Strategy.” Management expects to maintain this investment pace to capture further opportunities in the evolving cloud landscape.
With RMB 4.9 billion in cash reserves, the company is well-positioned to scale its AI and enterprise cloud operations throughout the year. The solid revenue performance (especially within its public cloud segment) underscores Kingsoft Cloud Holdings Limited’s (NASDAQ:KC) successful penetration into high-growth tech sectors and its continued commitment to infrastructure-led expansion.
Kingsoft Cloud Holdings Limited provides cloud infrastructure, platform, and software services along with enterprise digital solutions.
2. Tigo Energy Inc. (NASDAQ:TYGO)
Average Upside Potential: 187.55%
Tigo Energy Inc. (NASDAQ:TYGO) is one of the underperforming tech stocks to buy according to analysts. On June 17, Tigo Energy began shipping its modular GO Optimized Energy Storage System to the European residential market. The system’s flexible 7.3kWh to 47.9kWh capacity supports both single-phase and three-phase configurations, ensuring compatibility with all Tigo inverters in the region while operating in temperatures as low as -30°C.
The solution integrates storage with EV chargers, heat pumps, and solar production under the Tigo Energy Intelligence platform, providing installers with a unified, remotely manageable ecosystem. This design reduces service calls and streamlines project deployments for applications ranging from compact apartments to large homes.
To support the rollout, Tigo Energy Inc. offers professional design reviews, on-call technical assistance through its “Green Glove” program, and a tiered loyalty initiative. These resources, paired with specialized training from the Tigo Academy, are designed to help installers simplify installations and provide homeowners with enhanced control over their energy usage.
Tigo Energy Inc. develops smart hardware and software for solar systems, including module-level power electronics, monitoring platforms, inverters, and battery storage products for residential, commercial, and utility-scale applications.
1. Veritone Inc. (NASDAQ:VERI)
Average Upside Potential: 564.06%
Veritone Inc. (NASDAQ:VERI) is one of the underperforming tech stocks to buy according to analysts. On May 14, Veritone launched “Job Acceleration” within its Broadbean programmatic advertising platform, providing recruiters with a self-serve tool to boost visibility for high-priority or hard-to-fill roles. This feature allows teams to temporarily prioritize specific positions without disrupting their broader, ongoing recruitment campaigns.
Users can launch accelerated hiring pushes directly from the Broadbean dashboard by selecting a budget and timeframe in a few clicks. The tool includes integrated performance tracking, enabling recruiters to monitor applicants, clicks, and conversion rates within their existing workflow.
Operated on a pay-for-performance model, the feature is designed to increase responsiveness to changing hiring needs. Early feedback from customers highlights the tool’s flexibility as a significant improvement for teams needing to act quickly on urgent talent acquisition demands.
Veritone Inc. provides software services to public sector and commercial clients. It offers a software application that can transform unstructured data from sources like video, audio, and text into actionable intelligence. This way, it helps improve the decision-making process for clients.
READ NEXT: 10 Hot Tech Stocks to Buy According to Analysts and 10 Best Future Tech Stocks to Buy According to Billionaires.
Hedge Fund Resource Center