In this article, we will talk about the 12 Cheap Technology Stocks to Invest In According to Hedge Funds.

In December 2025, UBS was positive on the U.S. tech sector and expected it to remain strong, driven by AI-led growth, citing it as a major driver of the market’s next leg up. However, in a recent update on February 10, UBS downgraded the U.S. IT sector to Neutral, signaling that the recent strength in tech stocks veils increasing risks linked to hyperscaler spending and uncertainty in the software industry.

In a note, UBS Chief Investment Officer Mark Haefele said they expect a deceleration in hyperscaler Capex growth, while stretched hardware valuations suggest a more cautious stance. The bank expects hyperscaler Capex could reach around $700 billion in 2026, indicating ‘a more than fourfold increase over three years.’ Haefele pointed out that this level of investment now ‘consumes almost 100% of hyperscalers’ cash flow from operations.’

Following a tech sell-off earlier in February, the tech-savvy Nasdaq Composite has dropped by almost 4% over the last month, as of February 20. Year-to-date, the index is down by 2.94%. Piper Sandler analysts attribute the recent tech sell-off to a shift to the ‘old economy’ amid the AI shift. Goldman Sachs also shared similar thoughts and stated:

”After years of focus on identifying stocks with the greatest potential AI exposure, concerns about disruption have pushed investors back toward ‘real economy’ industries, including those leveraged to recent signs of accelerating economic growth.”

On the other side, the market remains under the shadow of potential new tariffs from the U.S. administration following President Trump’s condemnation of the U.S. Supreme Court ruling on February 23. The court, in a 6-to-3 decision, ruled against the latest 10% increase in global tariffs. According to Reuters, the President has vowed to other tariff powers and licenses without sharing any details. In a social media post, Trump said:

”The court has also approved all other Tariffs, of which there are many, and they can all be used in a much more powerful and obnoxious way, with legal certainty, than the Tariffs as initially used.”

The European Commission has also demanded that the terms of an EU-US trade deal signed last year be adhered to.

With that, let’s take a look at the 12 Cheap Technology Stocks to Invest In According to Hedge Funds.

Our Methodology

To create a list of 12 cheap technology stocks to invest in according to hedge funds, we shortlisted tech companies with forward P/E ratios between 3 and 15. We then reviewed the analyst insight and confirmed that these companies have positive analyst coverage and upside. Finally, we ranked the cheap technology stocks to invest in based on the number of hedge funds holding them. The hedge fund sentiment data for each stock were sourced from Insider Monkey’s database as of Q3 2025.

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

Note: All the data is as of market close on February 20, 2026.

11. Corpay, Inc. (NYSE:CPAY)

Forward P/E Ratio: 11.74

Number of Hedge Fund Holders: 45

Corpay, Inc. (NYSE:CPAY) is one of the top cheap technology stocks to invest in according to hedge funds.

On February 11, Corpay, Inc. (NYSE:CPAY) announced that its Cross-Border business has signed a multi-year agreement with LIV Golf, extending its successful and exclusive partnership as LIV’s official corporate foreign exchange (FX) provider.

Corpay Cross-Border has been offering a range of corporate FX payment solutions to LIV Golf since 2024. With this latest extension agreement, Corpay will continue to provide its comprehensive currency risk management solutions and award-winning global payments services to LIV Golf.

Corpay Cross-Border business extended another partnership deal with Rugby Australia. In a news release on February 9, the company announced that Rugby Australia has signed with them as their official exchange payments partner. In a multi-year deal, Cross-Border will continue to offer its payment services to both the Men’s Australian National Rugby Union Team, the Wallabies, and the Women’s Australian National Rugby Union Team, the Wallaroos.

Out of 18 analysts covering CPAY, 78% have rated the stock as a Buy, while 22% have a Hold rating. CPAY has a consensus average price target of $384, indicating upside potential of more than 13%. Corpay currently trades at a forward price-to-earnings ratio of 11.74.

Corpay, Inc. (NYSE:CPAY) is a corporate payment service provider that assists businesses in managing vehicle-related expenses, lodging expenses, and corporate payments worldwide. The company offers vehicle payment solutions, including fuel, tolls, parking, vehicle compliance, and fleet maintenance.

11. Gen Digital Inc. (NASDAQ:GEN)

Forward P/E Ratio: 8.78

Number of Hedge Fund Holders: 46

Gen Digital Inc. (NASDAQ:GEN) is one of the top cheap technology stocks to invest in according to hedge funds.

On February 12, Gen Digital Inc. (NASDAQ:GEN) announced new products for its identity theft software, LifeLock, to expand identity protection that adapts to the complexity of Americans’ financial lives.

Identity theft has become a major problem, and the growing risk poses a major threat to a person’s financial life. LifeLock’s newly designed products will help clients overcome this issue and offer clearer, more comprehensive protection.

The new LifeLock plans range from basic to advanced, including Core, Advanced, and Total. These plans offer up to $1.05 million, $1.2 million, and $3 million in identity theft coverage, respectively. Apart from these offerings, these plans provide comprehensive credit and financial monitoring.

The new features also offer AI-powered and human-supported scam detection to prevent fraud. Apart from the million-dollar protection package, the company is also offering scam reimbursement of up to $5,000 and $10,000 for its Advanced and Total plans. On top of all these features, LifeLock will provide 24/7 Virtual Advisor support.

Of 14 analysts, 7 rate GEN a Buy and 7 a Hold. GEN has a consensus price target of $32.50, presenting an upside of over 45%.

Gen Digital Inc. (NASDAQ:GEN) is focused on providing cybersecurity solutions for individuals, families, and small businesses. The company offers identity protection and online privacy, along with other security management services.