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.
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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.
10. CDW Corporation (NASDAQ:CDW)
Forward P/E Ratio: 11.86
Number of Hedge Fund Holders: 48
CDW Corporation (NASDAQ:CDW) is one of the top cheap technology stocks to invest in according to hedge funds.
On February 5, TheFly reported that Erik Woodring at Morgan Stanley raised the price target on CDW Corporation (NASDAQ:CDW) from $141 to $142, while keeping an Equal Weight rating on the shares.
Morgan Stanley raised the target following strong Q4 2025 results. CDW exceeded the adjusted earnings per share by $0.13, posting $2.57, while revenue came in at $5.51 billion, surpassing the estimates by $179 million.
CDW Corporation’s CEO Christine A. Leahy mentioned that the strong cash flow generation provided flexibility across the firm’s capital priorities, leading to Mergers & Accuisitions and returning over $982 million to shareholders through share repurchases and dividends. Leahy stated:
”Our position as a trusted advisor remains a clear differentiator, and our results highlight the resilience of our diversified customer base and the depth of our product and solutions portfolio, built on strategic investments and an unwavering focus on our customers.”
For 2026, the company expects to exceed the U.S. IT addressable market growth by 200 to 300 basis points. To achieve this growth, CDW Corporation will remain committed to meeting the growing demands of over 250,000 customers and focus on the rising interest in AI.
CDW Corporation has an average price target of $162, highlighting an upside potential of more than 29.50%.
CDW Corporation (NASDAQ:CDW) offers IT solutions in the U.S., the U.K., and Canada. The company provides discrete hardware and software products and services, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.
9. GoDaddy Inc. (NYSE:GDDY)
Forward P/E Ratio: 10
Number of Hedge Fund Holders: 49
GoDaddy Inc. (NYSE:GDDY) is one of the top cheap technology stocks to invest in according to hedge funds.
On February 19, GoDaddy Inc. (NYSE:GDDY) reported that it has integrated with Salesforce’s MuleSoft Agent Fabric. Salesforce AI software assists companies of all sizes in discovering AI agents and verifying their identity. This protects rogue agents from coming across business systems and sensitive data.
In other news, on January 15, TheFly reported that Morgan Stanley’s Elizabeth Porter lowered the price target on GoDaddy Inc. (NYSE:GDDY) from $159 to $149, keeping an Equal Weight rating on the stock.
Porter mentioned that AI-related risks are less severe than initially feared, supporting a constructive outlook for application Software-as-a-Service (SaaS) in 2026, despite Application SaaS underperforming the broader software group and tech sector in 2025. The analyst further highlighted that a continued lack of broad-based positive spending revisions keeps GoDaddy ‘selectively opportunistic.’
Out of 20 analysts covering the stock, 65% rate it as a Buy and 35% rate it as a Hold. GDDY has an average price target of $172.50, indicating an upside potential of more than 90%. Ahead of the Q4 2025 earnings scheduled on February 24, the average analyst estimate for adjusted earnings is $1.58, with a revenue consensus of $1.27 billion.
GoDaddy Inc. (NYSE:GDDY) is the world’s largest domain name registrar. It is also focused on the design and development of cloud-based products worldwide. The company operates through two segments, including Applications and Commerce (A&C) and Core Platform (Core).
8. Dell Technologies Inc. (NYSE:DELL)
Forward P/E Ratio: 12.27
Number of Hedge Fund Holders: 51
Dell Technologies Inc. (NYSE:DELL) is one of the top cheap technology stocks to invest in according to hedge funds.
On February 18, Wells Fargo analyst Aaron Rakers lowered the price target on Dell Technologies Inc. (NYSE:DELL) from $200 to $180, keeping its Buy rating on the stock. The $180 price target still indicates an upside of over 47%.
In another development on February 19, TheFly reported that Evercore ISI added Dell Technologies to its ‘Tactical Outperform’ list ahead of Dell’s Q4 FY2026 results scheduled to be released on February 26. Amit Daryanani from Evercore lowered the price target on DELL from $180 to $160.
Despite the price adjustment, Daryanani remains positive on Dell Technologies amid the strong near-term demand trends across traditional hardware and AI compute. The analyst also expects upside to Dell’s current revenue and earnings per share expectations of $31.4 billion and $3.52 per share.
Dell is positioned to benefit from AI infrastructure growth, with the ISG segment gaining the most momentum. The ISG segment saw a 24% growth in Q3 FY2026 and recorded a robust AI server backlog, indicating a strong outlook in the segment.
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, and sells integrated solutions, products, and services worldwide. The company operates in two segments, including Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).
7. Zebra Technologies Corporation (NASDAQ:ZBRA)
Forward P/E Ratio: 14.15
Number of Hedge Fund Holders: 53
Zebra Technologies Corporation (NASDAQ:ZBRA) is one of the top cheap technology stocks to invest in according to hedge funds.
On February 13, TheFly reported that Morgan Stanley lifted the price target on Zebra Technologies Corporation (NASDAQ:ZBRA) from $309 to $323, keeping its Equal Weight rating on the stock.
Morgan Stanley’s analyst Meta Marshall remains positive on ZBRA as the company’s outlook pointed to a reacceleration in 2026 despite concerns on the Q4 print around organic growth rates.
UBS analyst Damian Karas also increased the price target on Zebra Technologies from $310 to $335, with a Buy rating. Karas pointed out that Zebra’s 2026 guidance was ahead of consensus estimates. The company expects its Q1 2026 revenue to be around $1.48 billion at the midpoint, higher than analyst estimates of $1.43 billion. Whereas, the adjusted EPS guidance for FY2026 is estimated to be $18 at the midpoint. The company’s guidance is based on a strong pipeline, ongoing investments in AI-powered solutions for the frontline, and continued momentum in RFID and machine vision technologies.
After a strong fourth quarter driven by robust growth in Asia Pacific and Latin America, and ZBRA’s return to growth in Europe, Zebra Technologies is ready to focus on expansion in healthcare, manufacturing, and retail sectors. With a consensus average price target of $345, ZBRA has an upside of almost 35% as of February 20.
Zebra Technologies Corporation (NASDAQ:ZBRA), along with its subsidiaries, is engaged in the global automatic identification and data capture solutions industry. The company operates in two segments: Connected Frontline and Asset Visibility and Automation.
6. Global Payments Inc. (NYSE:GPN)
Forward P/E Ratio: 5.97
Number of Hedge Fund Holders: 53
Global Payments Inc. (NYSE:GPN) is one of the top cheap technology stocks to invest in according to hedge funds.
On February 19, TD Cowen analyst Bryan Bergin increased the price target on Global Payments Inc. (NYSE:GPN) from $90 to $91, keeping a Hold rating on the stock. According to TheFly, Bergin believes that consistent Q4 standalone execution capped off a healthy 2025 and 2026 outlook.
On February 18, Global Payments posted Q4 2025 results, just in line with the estimates. The adjusted earnings per share of $3.18 exceeded the earnings estimates of $3.16 per share, while the revenue was around $2.32 billion, just short of the average estimate of $2.35 billion. Cameron Bready, CEO of Global Payments, said:
”2025 was a transformative year for Global Payments. We significantly advanced our agenda to reposition our business as a unified, streamlined operating company, while delivering strong financial results that were consistent with the commitments we established at the outset of the year.”
For 2026, Global Payments Inc. (NYSE:GPN) expects net revenue to grow by almost 5%, excluding dispositions. The adjusted earnings per share are expected to be around $13.80 to $14, indicating growth of 13% to 15%.
RBC Capital has also raised the price target on GPN from $95 to $97, maintaining its Sector Perform rating. The firm remains positive on GPN following the Q4 earnings beat and notes that the company’s FY2026 outlook is ‘appropriately level-set.’
Global Payments Inc. (NYSE:GPN) offers payment technology and software solutions for card, check, and digital payments in the Americas, Europe, and the Asia-Pacific. The company operates through the Merchant Solutions and Issuer Solutions segments.
5. Fidelity National Information Services, Inc. (NYSE:FIS)
Forward P/E Ratio: 8.52
Number of Hedge Fund Holders: 57
Fidelity National Information Services, Inc. (NYSE:FIS) is one of the top cheap technology stocks to invest in according to hedge funds.
On February 24, William Blair reiterated its Buy rating on Fidelity National Information Services, Inc. (NYSE:FIS), without a price target.
The analyst has reaffirmed the rating after the company reported higher Q4 2025 profit, posting gross profit of $1.07 billion. The higher profit during the last quarter was driven by robust demand for its financial products and services.
The company ended the quarter with revenue of $2.81 billion, exceeding estimates of $2.74 billion, while adjusted earnings per share came in at $1.68, just short of the average analyst estimate of $1.69. Here is what the CEO of FIS, Stephanie Ferris, said:
”We are entering 2026 with continued strong momentum as our commercial excellence initiatives and investments in innovation are driving durable revenue growth and expanding margins. With the Issuing acquisition, FIS now operates the most comprehensive financial data set in the industry – spanning the entire money lifecycle. We are executing against a differentiated strategy, driving innovation across the enterprise, and are uniquely positioned for this generational moment in financial services.”
The company expects FY2026 revenue between $13.77 billion and $13.85 billion, ahead of the consensus outlook of $13.52 billion. The revenue estimates indicate a year-over-year growth of around 31%.
In another development on February 1, Keefe Bruyette analyst Vasundhara Govil reiterated its Outperform rating on Fidelity National Information Services, keeping the price target at $85. Govil believes that Fidelity’s risk exposure to recent regulatory noise is low. The management’s intra-quarter messaging also indicates 2026 expectations are ‘well within reach,’ added Govil.
Fidelity National Information Services, Inc. (NYSE:FIS) is focused on providing financial services technology solutions. The company offers its solutions to financial institutions, businesses, and developers globally.
4. QUALCOMM Incorporated (NASDAQ:QCOM)
Forward P/E Ratio: 12.82
Number of Hedge Fund Holders: 63
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the top cheap technology stocks to invest in according to hedge funds.
On February 20, QUALCOMM Incorporated (NASDAQ:QCOM) signed a deal with Tata Electronics to produce Qualcomm Automotive Modules in India.
Tata Electronics will manage manufacturing at its new semiconductor assembly and test facility, under development in Jagiroad, Assam. This partnership is set to address the rising demand for automotive digital platforms from domestic and international automakers. Qualcomm Technologies will integrate its network of global module suppliers with Tata and support the ‘Make in India’ programme through local production. Tata will engage in technologies such as digital cockpits, infotainment systems, connectivity solutions, and intelligent vehicle infrastructure.
The agreement with Tata follows Qualcomm’s announcement of an investment of around $150 million in India to support its rapidly growing technology and AI startup ecosystem. On February 18, QUALCOMM Incorporated announced that it plans to invest in India through Qualcomm Ventures and will invest in startups with a focus on AI for automotive, IoT, robotics, and mobile. This development aligns with Qualcomm’s leadership in advancing edge AI at a global scale. Qualcomm CEO Cristiano Amon said:
”Through our new Strategic AI Venture Fund, Qualcomm is investing in companies that are advancing the next chapter of AI in India. AI is entering a new phase where intelligence is built directly into devices and systems people depend on every day, from smartphones and PCs to cars, industrial machines, robots, and more, delivering richer and more meaningful experiences.”
QUALCOMM Incorporated (NASDAQ:QCOM) is focused on the development and commercialization of foundational technologies for the wireless industry. The company operates through three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI).
3. Hewlett Packard Enterprise Company (NYSE:HPE)
Forward P/E Ratio: 9.07
Number of Hedge Fund Holders: 72
Hewlett Packard Enterprise Company (NYSE:HPE) is one of the top cheap technology stocks to invest in according to hedge funds.
On February 19, JPMorgan analyst Samik Chatterjee reduced the price target on Hewlett Packard Enterprise Company (NYSE:HPE) from $30 to $27, while maintaining an Overweight rating.
According to TheFly, Chatterjee lowered the price target as part of an earnings preview. The analyst pointed out that investor sentiment remains challenging for the hardware and networking group. The sector’s near-term performance is likely to be robust due to the pull-forward. The magnitude of share price upside is likely to be more “muted”, added Chatterjee.
In another rating on January 13, Goldman Sachs upgraded HPE from Neutral to Buy, keeping the price target at $31. Goldman believes Hewlett-Packard Enterprise to be ‘a show-me story in 2026.’ The analyst firm noted that the Juniper merger secures HPE’s position as the number two player in the enterprise networking market and expands its reach in data center networking.
Hewlett Packard Enterprise Company trades at a forward P/E of 9.07 and has an average price target of $26, which indicates an upside potential of almost 28%.
Hewlett Packard Enterprise Company (NYSE:HPE), along with its subsidiaries, develops intelligent solutions for enterprises globally. The company operates in five segments: Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other.
2. Fiserv, Inc. (NASDAQ:FISV)
Forward P/E Ratio: 7.53
Number of Hedge Fund Holders: 83
Fiserv, Inc. (NASDAQ:FISV) is one of the top cheap technology stocks to invest in according to hedge funds.
On February 16, RBC Capital analyst Daniel Perlin reiterated a Buy rating on Fiserv, Inc. (NASDAQ:FISV), maintaining the price target at $85.
The analyst remains positive on Fiserv following its Q4 2025 results. The company posted adjusted earnings per share of $1.99, exceeding consensus by $0.09, while quarterly revenue was around $5.28 billion, up 1% from a year ago.
Fiserv’s focus on disciplined investment and efficiency supports its outlook for enhancing its financial performance in 2026. The company expects organic revenue growth between 1-3% in 2026 and adjusted earnings per share between $8 to $8.30. Mike Lyons, CEO of Fiserv, stated:
”During the fourth quarter, which marked the first full quarter executing the One Fiserv plan, the team took decisive steps and achieved several meaningful milestones and client wins, while also delivering performance in line with our expectations. We are increasingly confident in our ability to create sustainable value by executing on the pillars that have long distinguished Fiserv.”
In other news, on January 28, Fiserv, Inc. (NASDAQ:FISV) reported that it is expanding its partnership with ServiceNow, Inc. (NYSE:NOW) to accelerate AI-led transformation of financial services. As per the strategic agreement, Fiserv will expand the usage of ServiceNow Now Assist for Financial Services Operations (FSO) and IT Service Management (ITSM). The company will enhance its IT and customer service operations through Now Assist, improving Fiserv’s client service. The agreement is based on a long-term partnership between both companies. Fiserv’s goal is to improve its operations at scale by integrating AI assistance directly into workflows.
Fiserv, Inc. (NASDAQ:FISV) is a global leader in payments and financial technology. The company assists clients with various payment solutions, including account processing and digital banking, card issuer processing, and network services.
1. Adobe Inc. (NASDAQ:ADBE)
Forward P/E Ratio: 11.08
Number of Hedge Fund Holders: 88
Adobe Inc. (NASDAQ:ADBE) is one of the top cheap technology stocks to invest in according to hedge funds.
On February 3, Piper Sandler downgraded Adobe Inc. (NASDAQ:ADBE) from Overweight to Neutral, lowering the price target from $470 to $330.
Piper Sandler’s Billy Fitzsimmons remains concerned about Adobe’s seat-compression and vibe-coding narratives and believes that could put a ceiling on the multiples, according to TheFly. Fitzsimmons mentioned that this is not a call on Q4 earnings.
Separately, the strong point for Adobe remains its AI monetization around its products, such as Firefly and Acrobat AI Assistant. However, the latest piracy lawsuits have led to downgrades from most analysts. The key for Adobe is to balance its legal risks and maintain its strong presence around AI-powered content tools. Its recent partnership with Cognizant focuses on enterprise demand for scalable, lower-cost content production. The AI-focused collaboration between the two firms brings Adobe’s Firefly and GenStudio tools to the center of enterprise content workflows. This will be a major development for Adobe if enterprises adopt its AI-driven content tools at scale. Stephen Frieder, Chief Revenue Officer, Enterprise at Adobe, said:
”As AI reshapes customer expectations, Adobe is helping brands stand out with exceptional, personalized experiences, powered by an AI-driven content supply chain. Cognizant’s deep industry expertise and ability to operationalize complex transformations make them a natural strategic partner as we help organizations seamlessly orchestrate and scale content production workflows while maintaining quality and control.”
Adobe Inc. (NASDAQ:ADBE) is a leading tech company that engages in digital media. The company’s digital media segment provides products and services that allow users to create, publish, and promote content.
While we acknowledge the potential of ADBE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADBE and that has 100x upside potential, check out our report about this cheapest AI stock.
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