In this article, we will look at the 12 Best Small Cap Tech Stocks to Buy According to Hedge Funds.
Andrew Slimmon of Morgan Stanley Investment Management appeared on CNBC to talk about the recent market action and whether the rally points to a warning.
He was of the opinion that every time he hears someone say that the breadth is bad, it is misleading because maybe the big stocks are showing the best fundamentals, and if they are, then they should be rewarded. Therefore, he is not very worried. What he is more worried about right now is that what has really led since the end of the first quarter is the real speculative stocks, and they are on a tear. That is a warning sign to him that the market is vulnerable to bad news that comes along when the leadership is in the very, very speculative names.
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Evans further stated that the bull markets die on euphoria, there are not enough indications of that, and that consumer sentiment is continuing to stay woefully depressed. In addition, while tech valuations remain reasonably priced, they are not euphoric.
With these broader market trends in view, let’s look at the best small cap tech stocks to buy according to hedge funds.
Our Methodology
We used the Finviz stock screener to identify the best small-cap tech stocks and selected the top 12 stocks most popular among hedge funds as of Q4 2025, using the hedge fund sentiment data from Insider Monkey’s database. The stocks are arranged in ascending order of hedge fund sentiment.
Note: All data was recorded on May 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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12 Best Small Cap Tech Stocks to Buy According to Hedge Funds
12. EverCommerce Inc. (NASDAQ:EVCM)
Number of Hedge Fund Holders: 9
EverCommerce Inc. (NASDAQ:EVCM) is one of the best small cap tech stocks to buy according to hedge funds. Canaccord lifted the price target on EverCommerce Inc. (NASDAQ:EVCM) to $13 from $12 on May 11, maintaining a Buy rating on the shares. The firm updated its model on the stock after its fiscal results, which were, although modestly ahead of guidance on the headline numbers, failed to fully address more fundamental questions about the trajectory of the underlying business.
In its financial results for fiscal Q1 2026, EverCommerce Inc. (NASDAQ:EVCM) reported $147.5 million in revenue from continuing operations, reflecting an increase of 3.6% compared to $142.3 million for the quarter ended March 31, 2025. Pro forma revenue rose 3.0% to $147.5 million, compared to $143.2 million for the quarter ended March 31, 2025. Management further reported that subscription and transaction fees revenue from continuing operations was $142.1 million, up 3.1% compared to $137.8 million for the quarter ended March 31, 2025.
EverCommerce Inc. (NASDAQ:EVCM) provides integrated, vertically-tailored software-as-a-service solutions for service-based small and medium-sized businesses. The company’s operations are divided into the United States and International geographical segments.
11. Ambiq Micro, Inc. (NYSE:AMBQ)
Number of Hedge Fund Holders: 15
Ambiq Micro, Inc. (NYSE:AMBQ) is one of the best small cap tech stocks to buy according to hedge funds. Ambiq Micro, Inc. (NYSE:AMBQ) received rating updates from UBS and Northland on May 13 following the release of financial results for its fiscal Q1 2026 earnings. UBS lifted the price target on the stock to $70 from $43, maintaining a Neutral rating on the shares and telling investors in a research note that growth inflections with Atomiq are still ahead.
Northland also lifted the price target on Ambiq Micro, Inc. (NYSE:AMBQ) to $72 from $44 on May 13, reiterating an Outperform rating on the stock after the company reported that its EPS beat consensus, driven primarily by revenue upside. It further stated that Ambiq Micro, Inc. (NYSE:AMBQ) is seeing solid demand for its low-power products across the wearable space and other end markets, and the firm believes that AI-enabled wearables are “in the first inning of growth.”
Ambiq Micro, Inc. (NYSE:AMBQ) provides ultra-low power semiconductor solutions that address the significant power consumption challenges of general-purpose and AI computing. The company’s operations are divided into the following geographical segments: China, Taiwan, Singapore, and the rest of the World.
