On September 24, Gil Luria, D.A. Davidson managing director, joined ‘Fast Money’ on CNBC to discuss concerns about value destruction. Luria believes that big tech reaps real returns while others face risks. As several new AI partnerships emerge, the question that comes up is that at what point the companies involved in these deals should be subjected to actual scrutiny regarding what the partnerships mean for their value. Luria stated that scrutiny should begin right now, and distinguished between real companies and marginal players in the AI trade. The real companies, such as the MAG7, have real customers and extremely favorable economics: their cost of capital is likely around 5%, and they are likely earning a 20% return on that capital, which is value-creating.
In contrast, he categorized incremental players as having to borrow at 10% or 12% and only generating mid-single-digit returns. He concluded that this is the equivalent of buying treasuries on margin, which is value-destructive and where the focus should be. He explained that the market began with a core AI trade dominated by players in the MAG7, which have captured most of the value. However, the trade then expanded to these marginal players, which are now trading at higher multiples. In Luria’s view, it doesn’t make any sense for these marginal players to command higher multiples than the real companies building AI.
That being said, we’re here with a list of the 12 oversold tech stocks to invest in.
Our Methodology
We sifted through the Finviz stock screener to compile a list of stocks that have declined by about 15% over the past 6 months. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2025.
Note: All data was sourced on September 29.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Oversold Tech Stocks to Invest in
12. Maris-Tech Ltd. (NASDAQ:MTEK)
Decline Over the Past 6 Months: 22.29%
Number of Hedge Fund Holders: 2
Maris-Tech Ltd. (NASDAQ:MTEK) is one of the oversold tech stocks to invest in. On September 29, Maris-Tech announced the launch of a new product called Peridot Night. Peridot Night is an advanced thermal and day camera solution designed for situational awareness and terrain dominance to enhance visibility, safety, and operational decision-making.
It is a ruggedized, AI-driven edge computing platform specifically for military and homeland security/HL applications. The solution is suitable for various ground, aerial, and maritime platforms, as well as fixed locations. Powered by Maris’ Jupiter-AI edge computing platform, Peridot Night integrates three thermal cameras and one full-HD day camera.
The setup provides seamless 90-degree panoramic video streams for horizontal view. Key capabilities include AI-based threat detection and local recording, which deliver real-time intelligence to defense and HLS operators in challenging environments. It can be mounted on various assets, including armored fighting vehicles, unmanned systems, and maritime platforms. When four units are installed together, Peridot Night achieves full 360-degree situational awareness.
Maris-Tech Ltd. (NASDAQ:MTEK) designs, develops, manufactures, and sells digital video and audio products and services.
11. Zenvia Inc. (NASDAQ:ZENV)
Decline Over the Past 6 Months: 23.16%
Number of Hedge Fund Holders: 3
Zenvia Inc. (NASDAQ:ZENV) is one of the oversold tech stocks to invest in. On September 15, Zenvia announced the election of Piero Rosatelli as its new Chief Financial Office/CFO and Investor Relations Officer/IRO. Rosatelli succeeds Shay Chor in the roles of CFO and IRO. Chor served the company for 4 years and has been assisting Rosatelli to ensure an orderly transition of responsibilities, and will continue to consult Zenvia’s Audit Committee.
Before this appointment, Rosatelli resigned from his position as a Zenvia Board Member. His professional background is extensive; he was one of the managing partners of Oria Capital and started his career in technology investments 16 years ago, having led more than 40 tech deals to date. He also has experience in investment banking and strategic and financial planning at the retailer C&A.
Rosatelli holds a bachelor’s degree in business administration and an MBA from Insper. He currently serves as a board member for Tolife and Interplayers Soluções Integradas and previously served on the board of Argo Solutions. For investor relations inquiries, Rosatelli and Fernanda Rosa can be contacted at ir@zenvia.com.
Zenvia Inc. (NASDAQ:ZENV) develops a cloud-based platform that enables organizations to integrate various communication capabilities internationally. It operates in the SaaS and Communications Platform as a Service segments.
10. Alpha Modus Holdings Inc. (NASDAQ:AMOD)
Decline Over the Past 6 Months: 15.04%
Number of Hedge Fund Holders: 7
Alpha Modus Holdings Inc. (NASDAQ:AMOD) is one of the oversold tech stocks to invest in. On September 23, Alpha Modus announced the issuance of a new patent by the United States Patent and Trademark Office/USPTO, which granted the patent, US Patent No. 12,423,718. The new patent expands Alpha Modus’s intellectual property in the field of in-store AI and shopper analytics.
It specifically covers methods and systems designed to monitor shopper behavior as customers move through a retail store. The technology tracks products that customers retain while shopping, identifies products presented at the point of sale/POS, and generates real-time comparisons. The capability allows the system to notify sales associates.
This issuance strengthens Alpha Modus’s existing patent portfolio, which protects core innovations in real-time consumer analytics, personalized in-store engagement, intelligent inventory management, and AI-optimized planogramming. The company continues to solidify its intellectual property position as the adoption of its patented technologies increases across the retail ecosystem.
Alpha Modus Holdings Inc. (NASDAQ:AMOD) creates, develops, and licenses data-driven technologies to enhance consumers’ in-store digital experience at the point of decision in the US.
9. Brand Engagement Network Inc. (NASDAQ:BNAI)
Decline Over the Past 6 Months: 21.59%
Number of Hedge Fund Holders: 10
Brand Engagement Network Inc. (NASDAQ:BNAI) is one of the oversold tech stocks to invest in. Effective September 18, Brand Engagement Network/BEN announced the appointment of Ruy Carrasco, M.D., to its Board of Directors. Carrasco has served as BEN’s Chief Medical Informatics Officer since 2021 and brings extensive expertise in healthcare, informatics, and enterprise innovation to the board.
BEN is actively executing its strategy and delivering secure, compliant AI solutions across various regulated sectors, including insurance, financial services, healthcare & life sciences, hospitality, and media/retail. Acting CEO, Co-Founder, and Head of Product, Tyler Luck, stated that the company is advancing with discipline and working with global partners across the US, LATAM, and the EU.
BEN’s core technology involves its Engagement Language Model/ELM, which uses retrieval-augmented generation in secure, closed-loop deployments based on customer-approved data. These multimodal AI Agents operate across chat, voice, and lifelike avatars on web, mobile, kiosks, and embedded systems.
Brand Engagement Network Inc. (NASDAQ:BNAI) provides conversational AI assistants. The company’s AI agents are built on proprietary natural language processing, multisensory awareness, sentiment, and environmental analysis, as well as real-time individuation and personalization capabilities.
8. WeRide Inc. (NASDAQ:WRD)
Decline Over the Past 6 Months: 28.72%
Number of Hedge Fund Holders: 14
WeRide Inc. (NASDAQ:WRD) is one of the oversold tech stocks to invest in. On September 26, WeRide announced that the company recently achieved a significant milestone in its global expansion and secured first place and ~$900,000 in prize money at the 2025 Dubai World Challenge for Self-Driving Transport. The achievement highlights the company’s technological competence, with its joint project with Deutsche Bahn integrating a self-driving taxi and a self-driving bus outperforming competitors.
The award was announced at the 2025 Dubai World Congress for Self-Driving Transport/DWC and comes as part of Dubai’s ambitious push toward becoming a global hub for smart mobility for a quarter of all travel to be self-driving by 2030. In conjunction with this competition win, WeRide also received a self-driving vehicle trial permit from the Dubai Roads and Transport Authority/RTA to begin Robotaxi GXR trials in the city.
WeRide intends to initially deploy 50 Robotaxi GXRs in Dubai, with a larger goal of expanding its Middle East fleet to 1,000 vehicles and ultimately deploying tens of thousands of Robotaxis by 2030. This makes Dubai the 11th city worldwide and the second in the UAE to deploy WeRide Robotaxis, following operations in Abu Dhabi.
WeRide Inc. (NASDAQ:WRD) operates as a mover in the autonomous driving industry and a robotaxi company. Its One platform provides autonomous driving products and services that address various transportation needs across a range of use cases on the open road.
7. Digimarc Corporation (NASDAQ:DMRC)
Decline Over the Past 6 Months: 24.45%
Number of Hedge Fund Holders: 15
Digimarc Corporation (NASDAQ:DMRC) is one of the oversold tech stocks to invest in. On September 17, Digimarc Corporation officially launched digitally watermarked security labels designed to help brands combat product counterfeiting and restore consumer trust. The new labels move away from unreliable analog security features like foils and holograms, which are easily replicated by counterfeiters using widely available materials, towards interactive and machine-verifiable checks.
Digimarc’s solution incorporates the latest advances in encrypted, covert, and highly copy-resistant watermarks optimized for various label material substrates. The new digitally watermarked security label is impossible to re-originate, ultra-resistant to replication, and can be scanned with a mobile device either through an app or without one.
The innovative security labels provide an affordable, consumer-friendly, and scalable method of authentication, supporting both single and two-factor authentication options. For the dual-verification process, a visible QR code can be added directly to the covertly watermarked label, or the label can be paired with an existing QR code already present on the product packaging.
Digimarc Corporation (NASDAQ:DMRC) is a tech company that provides digital watermarking solutions in the US and internationally.
6. Concentrix Corporation (NASDAQ:CNXC)
Decline Over the Past 6 Months: 16.35%
Number of Hedge Fund Holders: 24
Concentrix Corporation (NASDAQ:CNXC) is one of the oversold tech stocks to invest in. On September 18, Concentrix announced the launch of its Agentic Operating Framework, which is specifically designed to help enterprises overcome common issues that lead to widespread failures in their AI pilot projects. The Agentic Operating Framework builds upon Concentrix’s decades of expertise in creating differentiated customer experiences.
It combines advanced technologies with deep consulting capabilities to transition AI projects from failed pilots into genuine operational impact. Unlike standard AI solutions that are limited to simple bots or tools, the Framework provides end-to-end planning capabilities.
It offers a comprehensive ecosystem of agentic AI services, including readiness & strategy, brand-aligned language models, agentic engineering, data management, and monitoring. The ecosystem integrates Concentrix’s technology-agnostic approach with proprietary iX suite of products and the capabilities of its partners. A key component, Agentic Value Maps, helps clients scale AI by pinpointing and prioritizing the highest-value opportunities for collaboration between human and AI agents.
Concentrix Corporation (NASDAQ:CNXC) designs, builds, and runs integrated customer experience/CX solutions worldwide.
5. Progress Software Corporation (NASDAQ:PRGS)
Decline Over the Past 6 Months: 16.62%
Number of Hedge Fund Holders: 24
Progress Software Corporation (NASDAQ:PRGS) is one of the oversold tech stocks to invest in. On September 18, Progress Software Corporation announced a major expansion of its AI-powered developer capabilities in the Q3 2025 release of its leading developer toolsets, Progress Telerik and Progress Kendo UI. The company’s specialized AI Coding Assistants have now been extended across all major UI component libraries, reporting, and styling tools.
The expansion provides deep context to popular AI-powered Integrated Development Environments/IDEs and helps developers automate more and deliver faster. The extended availability of the Telerik and Kendo UI AI Coding Assistants now supports major UI component libraries, including ASP.NET Core, WPF, WinForms, .NET MAUI, and Angular. For the first time, this technology is also being applied to Telerik Reporting and Progress Document Processing.
These specialized assistants integrate deeply into existing IDE workflows, working inside popular solutions like GitHub Copilot, Claude Code, and Cursor. Their primary function is to deliver highly specialized, context-aware code that understands the intricacies of the Telerik and Kendo UI components, thereby promoting faster delivery without compromising quality.
Progress Software Corporation (NASDAQ:PRGS) develops, deploys, and manages AI-powered applications and digital experiences in the US and internationally.
4. Xerox Holdings Corporation (NASDAQ:XRX)
Decline Over the Past 6 Months: 27.08%
Number of Hedge Fund Holders: 26
Xerox Holdings Corporation (NASDAQ:XRX) is one of the oversold tech stocks to invest in. On September 16, Xerox Holdings Corporation announced its reentry into the cut-sheet inkjet market with the introduction of the Xerox IJP900 Inkjet Press. The move marks the company’s return to the rapidly expanding mid-volume inkjet sector, offering a powerful, cost-effective color press.
The IJP900 is engineered to support print service providers looking to profit from new applications like direct mail and transactional printing, as well as in-plant operators aiming to boost operational efficiency and reduce costs. The IJP900 is designed to integrate fully with the Xerox production print ecosystem.
The integration includes Xerox FreeFlow for workflow automation, XMPie for personalized communications, and AI-assisted workflows with production analytics. These tools work together to accelerate job preparation, automate repetitive tasks, and provide real-time operational insights, thereby increasing output and reducing costs.
Xerox Holdings Corporation (NASDAQ:XRX) is a workplace technology company that integrates hardware, services, and software for enterprises internationally. It operates in two segments: Print & Other, and Xerox Financial Services/XFS.
3. Power Integrations Inc. (NASDAQ:POWI)
Decline Over the Past 6 Months: 21.92%
Number of Hedge Fund Holders: 28
Power Integrations Inc. (NASDAQ:POWI) is one of the oversold tech stocks to invest in. On September 22, Power Integrations announced the departure of Sandeep Nayyar from the company, where he served as CFO since 2010. Altera Corporation, the world’s largest independent provider of pure-play Field-Programmable Gate Array/FPGA solutions, announced the appointment of Nayyar as its new Chief Financial Officer/CFO.
Nayyar is expected to use his 3 decades of financial leadership experience in the semiconductor, storage, and life sciences industries. Nayyar brings a proven track record of operational excellence and strategic financial oversight. During his 15-year tenure at Power Integrations, he led finance, human resources, and corporate development, overseeing a period of sustained growth for the company.
Previously, he held senior finance positions at Quantum Corporation and Applied Biosystems. In these earlier roles, he was instrumental in expanding the addressable market for both companies and successfully navigating significant sale transactions. Nayyar holds a Bachelor of Commerce from the University of Delhi. He is a Certified Public Accountant/CPA in the State of California and a Chartered Accountant from India.
Power Integrations Inc. (NASDAQ:POWI) designs, develops, manufactures, and markets analog and mixed-signal integrated circuits/ICs, and other electronic components and circuitry used in high-voltage power conversion.
2. DXC Technology Company (NYSE:DXC)
Decline Over the Past 6 Months: 19.53%
Number of Hedge Fund Holders: 28
DXC Technology Company (NYSE:DXC) is one of the oversold tech stocks to invest in. On September 17, DXC Technology announced the launch of a new AI Center of Competence in Warsaw, Poland. This center joins DXC’s expanding global network of AI hubs, which already includes locations in Bulgaria, India, the Philippines, and Spain.
The new Warsaw center employs 500 data & AI experts who focus on accelerating enterprise AI adoption to drive innovation, streamline operations, increase efficiency, and reduce costs for companies worldwide. The new AI Center of Competence is built upon three strategic pillars: a resilient cloud infrastructure, intuitive AI interfaces, and a centralized hub for Research & Development.
The foundation is designed to help organizations fully harness AI’s potential, simplify their cloud operations, and maintain the highest global data security standards. The center is focused on creating a global ecosystem for continuous learning and innovation, ensuring that AI solutions are practical, sustainable, and impactful across various industries and geographies.
DXC Technology Company (NYSE:DXC) provides IT services and solutions internationally. It operates in two segments: Global Business Services/GBS and Global Infrastructure Services/GIS.
1. Fair Isaac Corporation (NYSE:FICO)
Decline Over the Past 6 Months: 16.87%
Number of Hedge Fund Holders: 74
Fair Isaac Corporation (NYSE:FICO) is one of the oversold tech stocks to invest in. On September 23, FICO announced a new suite of domain-specific GenAI models for the financial services industry, collectively called the FICO Focused Foundation Model for Financial Services/FICO FFM. The FFM is engineered to reduce hallucinations and achieve superior accuracy and trust compared to conventional GenAI models in highly regulated financial environments.
The FICO FFM product offering consists of two core components: the FICO Focused Language Model (FICO FLM) and the FICO Focused Sequence Model (FICO FSM). The models are engineered in-house, custom-built, and trained on curated, domain-specific data sets related to financial services. Unlike large, general-purpose LLMs that require massive compute power, FICO’s focused models require up to 1,000 times fewer resources to train and maintain.
The FICO FLM is built on domain-specific and task-specific contextual data, which drastically reduces the risk of hallucinations since the training data is directly relevant to the business problem. These smaller, more accurate models, which IDC analyst Megha Kumar likened to SLMs, drive a practical approach toward agentic AI and can streamline operations for financial institutions.
Fair Isaac Corporation (NYSE:FICO) develops software with analytics and digital decisioning technologies for businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments: Scores and Software.
While we acknowledge the potential of FICO 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 FICO and that has 100x upside potential, check out our report about this cheapest AI stock.
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