13 Hot Tech Stocks to Invest In

6. Frequency Electronics Inc. (NASDAQ:FEIM)

Number of Hedge Fund Holders: 11

6-Month Performance as of January 7: 151.06%

Frequency Electronics Inc. (NASDAQ:FEIM) is one of the hot tech stocks to invest in. On December 16, Freedom Capital downgraded Frequency Electronics to Hold from Buy with a price target of $42, which was brought up from $33. This sentiment was announced as Frequency Electronics reported Q2 results that fell slightly short of expectations and prior-year profitability, yet the firm maintains a positive outlook based on an emerging operational recovery. While the satellite business is experiencing temporary weakness, it is being countered by a strengthening in the non-space defense segment and a pivot toward land-based programs.

Just a few days prior to this rating, Frequency Electronics Inc. (NASDAQ:FEIM) announced its FQ2 2026 financial results, highlighted by a record-breaking funded backlog of $82 million. This backlog represented a 17% increase since the end of the previous fiscal year in April. Revenue for the quarter rose to $17.1 million, which was a 24% sequential increase and the third-highest quarterly revenue recorded by the company in the past decade.

The company’s revenue mix saw a shift toward non-space US government and Department of Defense/DoD contracts, which generated $11.9 million and accounted for 69% of total revenue. In contrast, commercial and US Government satellite programs contributed $4.6 million, or 27%. While total revenue was up from the previous year’s $15.8 million, net income fell to $1.8 million ($0.18 per share) from $2.7 million ($0.28 per share) a year ago. Frequency Electronics is now positioning itself for emerging markets, including quantum sensing, proliferated satellites, and Alternative Position, Navigation, and Timing (ALT-PNT) solutions.

Frequency Electronics Inc. (NASDAQ:FEIM), together with its subsidiaries, designs, develops, manufactures, markets, and sells precision time and frequency control products and components for microwave integrated circuit applications.