In this article, we will look at the 12 Best Tech Stocks to Invest In on the Dip.

The Nasdaq Composite shed 4% on Friday, June 5, its worst single-session loss since April 2025’s tariff turmoil. However, BTIG, a global financial services firm, is not calling the selloff a one-day event. Jonathan Krinsky, the firm’s technical strategist, warned that tech stocks face an additional 9%-10% downside from current levels. In fact, he called Friday’s drop the start of a larger unwind and characterized the sector as still broken technically, and that it doesn’t have a confirmed recovery yet in sight.

However, not everyone on Wall Street agrees with that line of thinking. For example, Steve Sosnick, chief strategist at Interactive Brokers, told MarketWatch that the anticipated flood of new supply from the upcoming SpaceX IPO is creating bad psychology and causing some investors to raise money to pay for it. For Valérie Noël, head of trading at Syz Bank, IPOs of SpaceX’s size tend to absorb liquidity. They also encourage some portfolio rebalancing, particularly when investors want to create room for a new position, Noël told the Financial Times.

Other expert observers see Friday’s selloff as the symptom of a kind of fragility that is ingrained in the current structure of the market. They cite LSEG Datastream data, which shows that the US tech sector now accounts for more than 39% of the S&P 500’s total market capitalization. This concentration is even higher than the 35% peak recorded during the dotcom bubble of March 2000. With such concentration levels, noted Walter Todd, chief investment officer at Greenwood Capital, it doesn’t take much to unravel the entire market.

Be that as it may, a Bespoke Investment Group analysis cited by Reuters argues that today’s leadership of the market by tech stocks isn’t anything close to the scenario during the dotcom bubble. For starters, the tech sector today accounts for more than a quarter of trailing 12-month net income among S&P 500 members. This is nearly twice the share it held at the dotcom bubble’s peak. Considering that some, such as David Lefkowitz, head of US equities at UBS Global Wealth Management, believe that the AI trade that has fueled much of the tech stock rally has further to go, it seems the sector still has plenty of runway left.

With that backdrop in mind, this article identifies 12 tech stocks worth considering during the current dip.

Our Methodology

To create this list, we used the Finviz stock screener to identify technology stocks that have declined more than 25% on a year-to-date basis as of June 10, 2026, but analysts see more than 25% upside potential. These stocks are also popular among analysts and elite hedge funds in Q1 2026. We ranked the stocks in ascending order based on the number of hedge funds that hold stakes in them.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).

Best Tech Stocks to Invest In on the Dip

12. Broadridge Financial Solutions, Inc. (NYSE:BR)

Number of Hedge Fund Holders: 44

Stock Upside: 33.30%

Year-To-Date Performance: -32.77%

Broadridge Financial Solutions, Inc. (NYSE:BR) is one of the best tech stocks to invest in on the dip. On June 8, Broadridge Financial Solutions, Inc. (NYSE:BR) announced that its Distributed Ledger Repo (DLR) platform processed $7.2 trillion in repo transactions during May 2026. The company noted that the average daily volume for the month amounts to $362 billion, a 220% year over year increase.

For context, the repo market is a short-term borrowing mechanism that financial institutions use to manage liquidity and collateral daily, and Broadridge’s DLR platform handles this activity using distributed ledger technology. According to the company, DLR allows tokenized securities to be settled and moved in real time within existing market workflows. Because it removes the need for manual reconciliations, the solution avoids settlement delays that typically slow down traditional repo infrastructure.

Horacio Barakat, Global Head of Digital Innovation at Broadridge, noted that the 220% year over year growth reflects a broader trend of institutional adoption. He said: “Institutions are increasingly looking for ways to improve liquidity efficiency and collateral mobility while maintaining operational simplicity. DLR is helping firms put tokenization to work in day-to-day market activity, delivering measurable benefits on an institutional scale.”

In August 2024, the DLR processed around $1 trillion, which then surged to $5.9 trillion by August 2025. The volume peaked at nearly $8 trillion by March this year.

Last month, on May 12, Broadridge announced an expansion of its tokenization capabilities that goes beyond the repo market. The company said plans were in motion to extend the DLR infrastructure to cover the issuance, trading, settlement, and servicing of tokenized securities across multiple asset classes. The goal, according to Frank Troise, President of Broadridge’s Global Capital Markets business, is to give institutions a single integrated framework through which they can operate across both traditional and digital markets.

Broadridge Financial Solutions, Inc. (NYSE:BR) is a financial technology company. It provides investor communications, governance, capital markets, and wealth management solutions to financial institutions, corporations, and asset managers.

11. Leidos Holdings, Inc. (NYSE:LDOS)

Number of Hedge Fund Holders: 44

Stock Upside: 44.92%

Year-To-Date Performance: -31.53%

Leidos Holdings, Inc. (NYSE:LDOS) is one of the best tech stocks to invest in on the dip. On June 4, Leidos Holdings, Inc. (NYSE:LDOS) announced the deployment of a new cloud-based satellite communications tool called the Joint Management Tool, or JMT. Leidos said the JMT is developed in partnership with the Defense Information Systems Agency (DISA) and US Space Command, and that the objective is to improve how military operators across the Department of War access and manage satellite communications (SATCOM) resources worldwide.

According to Leidos, the JMT solves the problem of fragmentation. It noted that before this tool, military operators used manual and time-intensive processes spread across multiple commands and agencies to manage global SATCOM resources. Now, the JMT consolidates service requests and operational oversight into a single enterprise environment. For that reason, operators have real-time visibility into available satellite communications assets. Put simply, commanders in the field can now see what connectivity resources are available, request access, and act faster without being slowed down by administrative bottlenecks.

The company said it expects the JMT’s automated dashboard to cut command-level reporting and analysis time by up to 85%. This tool replaces a legacy DISA system that had been in use since 2004. Leidos said it only took one year to develop and deploy the replacement, and that it used commercial off-the-shelf telecommunications modules for the development.

Leidos Holdings, Inc. (NYSE:LDOS) is a technology and engineering company. It provides digital modernization, cybersecurity, artificial intelligence, cloud computing, and defense technology solutions to government and commercial customers.