On Friday, August 8, US stocks went up, with the tech sector leading the gains. All the major averages ended the week with strong gains.
The tech-heavy Nasdaq Composite rose by 0.98% and reached a new record close. Earlier in the day, it hit a fresh all-time intraday high. The S&P 500 increased by 0.78% and ended slightly below its record close. The Dow Jones Industrial Average went up by 0.47%.
The major averages had a good week. The 30-stock Dow rose about 1.4%, the broad market S&P 500 gained 2.4%, and the Nasdaq jumped 3.9% on the week.
Apple Inc. (NASDAQ:AAPL) helped lift both the S&P 500′s tech sector and the Nasdaq. The stock had its best week since July 2020 as it jumped 13% after the company announced its plans to invest about $600 billion over four years in the United States.
This move was seen as an attempt to please President Donald Trump. Earlier in the week, President Trump said he would impose a 100% tariff on imported semiconductors and chips. However, he pointed out that companies that are “building in the United States” will be exempt from this tariff.
With this background in mind, let’s take a look at the 14 best technology penny stocks to buy according to analysts.
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Our Methodology
To compile our list of the 14 best technology penny stocks to buy according to analysts, we used the Finviz stock screener to look for stocks in the technology sector with a share price of under $5 as of August 8, 2025. We sorted our results based on market capitalization and picked the top 40 penny stocks. Next, we focused on the top 14 stocks that analysts believe have the most potential for growth. We ranked the 14 best technology penny stocks to buy based on their average price target upside potential according to analysts as of August 8, 2025.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds.
Why do we care about what hedge funds do? 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).
14 Best Technology Penny Stocks to Buy According to Analysts
14. indie Semiconductor, Inc. (NASDAQ:INDI)
Share Price: $4.02
Average Price Target Upside Potential According to Analysts: 49.25%
Number of Hedge Fund Holders: 15
indie Semiconductor, Inc. (NASDAQ:INDI) is one of the best technology penny stocks to buy according to analysts. On August 7, indie Semiconductor, Inc. (NASDAQ:INDI) announced that it has entered into a definitive agreement to acquire emotion3D GmbH.
Based in Vienna, Austria, emotion3D specializes in developing advanced perception algorithms and software for in-cabin sensing, advanced driver assistance systems (ADAS), and automated driving.
According to the report by indie Semiconductor, Inc. (NASDAQ:INDI), car makers are increasingly looking for co-optimized hardware-software solutions for ADAS applications. emotion3D is already working with top global Tier 1 manufacturers and OEMs, providing an AI-based perception approach suited to embedded ADAS sensing, which can also be expanded to vision, radar, and sensor fusion applications.
indie Semiconductor, Inc. (NASDAQ:INDI) believes that supplying software alongside its chip offering can help enhance the company’s vision and radar portfolio and high-gross-margin revenue. This transaction will position the company to benefit from the substantial ADAS market opportunity.
indie Semiconductor, Inc. (NASDAQ:INDI) will pay $20 million in cash at closing. Additionally, the company may have to pay up to $10 million if certain revenue targets are met over a post-closing period ending in February 2027. The company expects to complete the acquisition in the fourth quarter of 2025. indie Semiconductor, Inc. (NASDAQ:INDI) expects the deal to be immediately accretive.
indie Semiconductor, Inc. (NASDAQ:INDI) is a semiconductor company focused on developing and supplying automotive semiconductors, photonics, and software platforms.
13. Digital Turbine, Inc. (NASDAQ:APPS)
Share Price: $4.35
Average Price Target Upside Potential According to Analysts: 55.17%
Number of Hedge Fund Holders: 15
Digital Turbine, Inc. (NASDAQ:APPS) is one of the best technology penny stocks to buy according to analysts. On June 18, Digital Turbine, Inc. (NASDAQ:APPS) announced a special partnership with Alcatel, a top French consumer tech brand.
This partnership aims to improve the mobile user experience in India, which is the world’s second-largest smartphone market.
As Alcatel launches its new smartphones in India, working with Digital Turbine, Inc. (NASDAQ:APPS) will allow the French consumer tech brand to offer smooth and personalized experiences that improve how users interact with their mobile devices.
Under the agreement, Digital Turbine, Inc.’s (NASDAQ:APPS) suite of mobile technologies will be integrated directly into Alcatel devices made in India. This will improve how users discover and engage with apps.
These mobile technologies include Dynamic Installs, which opens new opportunities for app discovery by introducing users to pre-selected apps tailored to their preferences. SingleTap installs will allow users to download apps quickly without having to visit an app store, improving the user experience. Users will also get timely and relevant notifications with app suggestions based on their interests. This will help users get more value from their phones every day.
Digital Turbine, Inc. (NASDAQ:APPS) is a global mobile technology company that provides a platform designed to improve user acquisition growth and monetization. This platform connects advertisers, publishers, carriers, and device manufacturers with consumers.
12. Ribbon Communications Inc. (NASDAQ:RBBN)
Share Price: $3.79
Average Price Target Upside Potential According to Analysts: 58.31%
Number of Hedge Fund Holders: 11
Ribbon Communications Inc. (NASDAQ:RBBN) is one of the best technology penny stocks to buy according to analysts. On July 24, JMP Securities reiterated its Market Outperform rating for Ribbon Communications Inc. (NASDAQ:RBBN) with a price target of $6.00.
This decision came after Ribbon Communications Inc. (NASDAQ:RBBN) reported strong results for the second quarter of 2025.
The company generated $221 million in revenue in the second quarter, up 15% year-over-year and beating the consensus estimate of $213.4 million. Ribbon Communications Inc.’s (NASDAQ:RBBN) adjusted EBITDA reached $32 million, an increase of 47% compared to the same period last year and exceeding the consensus forecast of $29.7 million.
JMP analyst Trevor Walsh pointed out that Ribbon Communications Inc. (NASDAQ:RBBN) expects the fourth quarter to be the strongest of the year. This suggests that the company is “in an up cycle and gaining momentum” during “a multiyear investment period to modernize communication networks.”
Ribbon Communications Inc. (NASDAQ:RBBN) is a technology company that provides communications software, IP, and optical networking solutions to service providers, enterprises, and critical infrastructure sectors.
11. Commerce.com, Inc. (NASDAQ:CMRC)
Share Price: $4.36
Average Price Target Upside Potential According to Analysts: 60.55%
Number of Hedge Fund Holders: 27
Commerce.com, Inc. (NASDAQ:CMRC) is one of the best technology penny stocks to buy according to analysts. On July 31, Stifel reduced its price target for Commerce.com, Inc. (NASDAQ:CMRC) from $9 to $8 while keeping a Buy rating.
This decision came after the company reported Q2 2025 results and announced that it is rebranding its corporate name to Commerce.com, Inc. (NASDAQ:CMRC). This brings together the company’s three market-leading solutions, BigCommerce, Feedonomics, and Makeswift, to support the next era of agentic commerce.
Commerce.com, Inc. (NASDAQ:CMRC) has restructured its go-to-market strategy and positioned itself to benefit from the agentic commerce trend.
The company’s Q2 2025 results met Wall Street’s expectations. Stifel described these results as “a clean print across the board.”
Despite lowering the price target, Stifel still believes Commerce.com, Inc. (NASDAQ:CMRC) has a good risk/reward profile. The firm expects the company to experience a slight acceleration in revenue and margin improvements over the mid-term.
Commerce.com, Inc. (NASDAQ:CMRC) provides an open, AI-driven commerce ecosystem. The company offers solutions, tools, and systems that empower businesses to innovate, grow, and thrive.
10. Rezolve AI PLC (NASDAQ:RZLV)
Share Price: $3.00
Average Price Target Upside Potential According to Analysts: 66.67%
Number of Hedge Fund Holders: 8
Rezolve AI PLC (NASDAQ:RZLV) is one of the best technology penny stocks to buy according to analysts. On July 31, Rezolve AI PLC (NASDAQ:RZLV) reported that it has secured a $50 million strategic investment from two new fundamental investors.
This investment is designed as a long-term commitment without any warrants, contingent rights, or side arrangements. This shows strong trust from investors in Rezolve AI PLC’s (NASDAQ:RZLV) long-term potential.
The company plans to use the proceeds of this investment carefully on high-return growth initiatives. Rezolve AI PLC (NASDAQ:RZLV) will be looking to accelerate the deployment of its Brain Suite platform across key global markets. The company also plans to double enterprise sales capacity to transform active pilots into long-term commercial contracts. Additionally, Rezolve AI PLC (NASDAQ:RZLV) also plans to grow strategic partnerships and reseller channels to reach more customers and drive revenue growth.
This investment is expected to help the company take a strong position in the $30 trillion global retail market, which is transitioning to AI-first infrastructure.
Rezolve AI PLC (NASDAQ:RZLV) is a leader in AI-powered solutions for the retail and e-commerce sectors, focused on improving customer engagement, streamlining operations, and boosting sales with scalable AI-driven tools.
9. Vimeo, Inc. (NASDAQ:VMEO)
Share Price: $3.89
Average Price Target Upside Potential According to Analysts: 67.10%
Number of Hedge Fund Holders: 24
Vimeo, Inc. (NASDAQ:VMEO) is one of the best technology penny stocks to buy according to analysts. On July 1, Vimeo, Inc. (NASDAQ:VMEO) reported the appointment of Rose Frawley as the company’s new Chief People Officer (CPO).
Frawley will lead the company’s global plans for talent and organizational development. She will be committing to Vimeo, Inc.’s (NASDAQ:VMEO) people-first strategy and culture to help the company bring in top-tier talent.
At the helm of Vimeo, Inc.’s (NASDAQ:VMEO) human resources operations, Frawley will be working to create a culture full of trust and connection. She will be supporting employees to reach their full potential and make great video experiences for users.
Frawley has more than 20 years of experience in human resources. She specializes in creating high-performing People functions within leading technology and data companies.
Philip Moyer, CEO of Vimeo, Inc. (NASDAQ:VMEO), believes Frawley will play an important role in the company’s goal of making Vimeo the most trusted private video platform in the world and the best place for video talent to work.
Vimeo, Inc. (NASDAQ:VMEO) is a technology company that is known for Vimeo, a leading online video platform for hosting, creating, editing, sharing, and streaming high-quality videos for businesses, creatives, and brands.
8. Rimini Street, Inc. (NASDAQ:RMNI)
Share Price: $4.02
Average Price Target Upside Potential According to Analysts: 67.91%
Number of Hedge Fund Holders: 11
Rimini Street, Inc. (NASDAQ:RMNI) is one of the best technology penny stocks to buy according to analysts. On June 17, Rimini Street, Inc. (NASDAQ:RMNI) announced that OSG Corporation has extended its contract with the company for support of its Oracle EBS systems through 2029.
OSG Corporation, a global leader in the manufacturing of precision cutting tools, rolling dies, and machine parts, aims to accelerate its growth and profitability goals by extending its contract with Rimini Street, Inc. (NASDAQ:RMNI).
According to the report by Rimini Street, Inc. (NASDAQ:RMNI), OSG Corporation achieved an 8% reduction in total IT operating costs by following the Rimini Smart Path. This freed up resources for OSG Corporation to fund its factory automation initiatives.
Rimini Street, Inc. (NASDAQ:RMNI) a global provider of end-to-end enterprise software support and services. It is a leading third-party support provider for Oracle, SAP, and VMware software.
7. Kaltura, Inc. (NASDAQ:KLTR)
Share Price: $1.74
Average Price Target Upside Potential According to Analysts: 72.41%
Number of Hedge Fund Holders: 14
Kaltura, Inc. (NASDAQ:KLTR) is one of the best technology penny stocks to buy according to analysts. On July 16, Kaltura, Inc. (NASDAQ:KLTR) announced that its Kaltura Work Genie will now be available in the new AI Agents and Tools category on the AWS Marketplace.
According to the report, customers will now be able to find, buy, and use AI agent solutions, including the Work Genie, to accelerate agent and agentic workflow development easily through their AWS accounts.
Kaltura, Inc.’s (NASDAQ:KLTR) Work Genie helps organizations turn enterprise knowledge into personalized learning and support paths. It creates engaging and impactful digital experiences for both enterprise customers and employees.
By offering the Kaltura Work Genie in AWS Marketplace, Kaltura, Inc. (NASDAQ:KLTR) will provide customers with a streamlined way to get personalized, AI-driven learning and marketing experiences. Customers will be able to buy and deploy agent solutions faster and more efficiently.
Kaltura, Inc. (NASDAQ:KLTR) offers a platform for enterprise and TV content management and a wide range of AI-powered video products to support customer and employee engagement and success.
6. Blend Labs, Inc. (NYSE:BLND)
Share Price: $2.73
Average Price Target Upside Potential According to Analysts: 79.49%
Number of Hedge Fund Holders: 33
Blend Labs, Inc. (NYSE:BLND) is one of the best technology penny stocks to buy according to analysts. On August 7, Blend Labs, Inc. (NYSE:BLND) shared its second quarter 2025 financial results and reported that it reached a record high for its remaining performance obligations (RPO), with a balance of $190.4 million at the end of the quarter.
The company saw strong sales growth in the second quarter. Blend Labs, Inc. (NYSE:BLND) secured 23 new and expanded deals, which is twice as many as in the first quarter.
This growth came from both gaining new customers and deep product expansions with existing customers. Out of these 23 deals, 3 included new independent mortgage banks. This shows that Blend Labs, Inc.’s (NYSE:BLND) focus on this customer channel is starting to pay off.
Blend Labs, Inc. (NYSE:BLND) offers digital banking solutions through its cloud origination platform for banks, credit unions, and mortgage lenders.
5. Alight, Inc. (NYSE:ALIT)
Share Price: $3.81
Average Price Target Upside Potential According to Analysts: 83.73%
Number of Hedge Fund Holders: 41
Alight, Inc. (NYSE:ALIT) is one of the best technology penny stocks to buy according to analysts. On July 23, Alight, Inc. (NYSE:ALIT) reported that its Board of Directors announced a regular quarterly cash dividend of $0.04 per share on outstanding Class A Common Stock.
The dividend will be paid on September 15 to shareholders who own the stock on record as of the close of business on September 2.
Previously, in the second quarter of 2025 ended June 30, 2025, Alight, Inc. (NYSE:ALIT) repurchased $20 million worth of its common stock as part of its existing share repurchase program. During the quarter, the company returned a total of $42 million to its shareholders through dividends and buying back shares.
Alight, Inc. (NYSE:ALIT) ended the second quarter of 2025 with $241 million left in its share buyback authorization.
Alight Inc. (NYSE:ALIT) is a leading cloud-based human capital technology and services provider. The company’s main product, Alight Worklife, is a platform that helps manage employee benefits like healthcare, payroll, and wellbeing.
4. Blaize Holdings, Inc. (NASDAQ:BZAI)
Share Price: $3.20
Average Price Target Upside Potential According to Analysts: 87.50%
Number of Hedge Fund Holders: 7
Blaize Holdings, Inc. (NASDAQ:BZAI) is one of the best technology penny stocks to buy according to analysts. On July 21, Rosenblatt Securities upgraded Blaize Holdings, Inc. (NASDAQ:BZAI) from Neutral to Buy and increased the price target from $3.00 to $6.00.
This decision came after the company announced a second big deal for the deployment of its edge AI platform in Asia. The two agreements are worth $120 million and $56 million.
Rosenblatt noted that Blaize Holdings, Inc. (NASDAQ:BZAI) is securing agreements that are bigger and happening sooner than expected. The firm said that it is impressed with the company’s potential revenue pipeline of about $900 million through 2027.
The research firm pointed out Blaize Holdings, Inc.’s (NASDAQ:BZAI) edge AI technology as a key strength. They highlighted its high performance per watt, development support ecosystem, and its ability to serve different end markets.
Blaize Holdings, Inc. (NASDAQ:BZAI) is a technology company that provides a full-stack programmable processor architecture and a low-code/no-code software platform designed to support AI processing solutions for high-performance computing in edge devices and data centers.
3. VTEX (NYSE:VTEX)
Share Price: $4.31
Average Price Target Upside Potential According to Analysts: 108.82%
Number of Hedge Fund Holders: 14
VTEX (NYSE:VTEX) is one of the best technology penny stocks to buy according to analysts. On August 7, JPMorgan downgraded VTEX (NYSE:VTEX) from Overweight to Neutral and reduced its price target from $7.50 to $6.00.
This decision came after the company reported results for the second quarter of 2025. VTEX (NYSE:VTEX) reported that subscription revenue grew by 11.2% compared to the same time last year. However, this fell short of the company’s guidance range of 12.5% to 15.5%.
JPMorgan noted that weaker performance in key markets of Argentina and Brazil was the main reason behind the disappointing performance. VTEX (NYSE:VTEX) also lowered its full-year 2025 growth guidance to 9%-12%, down from its earlier outlook of 14%-17%.
Despite this, JPMorgan pointed out that the company’s margins surpassed expectations. This prompted VTEX (NYSE:VTEX) to raise its margin guidance for the year.
VTEX (NYSE:VTEX) provides an enterprise digital commerce platform for brands, retailers, and manufacturers to create and manage their e-commerce strategies.
2. Sabre Corporation (NASDAQ:SABR)
Share Price: $1.88
Average Price Target Upside Potential According to Analysts: 112.20%
Number of Hedge Fund Holders: 32
Sabre Corporation (NASDAQ:SABR) is one of the best technology penny stocks to buy according to analysts. On July 17, Sabre Corporation (NASDAQ:SABR) announced a new multi-year agreement with Christopherson Business Travel, a leading travel management company serving over 1,000 organizations in the US.
This agreement establishes Sabre Corporation (NASDAQ:SABR) as Christopherson’s primary distribution technology partner. This partnership will combine Sabre Corporation’s (NASDAQ:SABR) strengths in content aggregation, automation, and intelligent retailing with Christopherson’s modern approach to travel management.
Christopherson will be moving its operations to a range of Sabre Corporation’s (NASDAQ:SABR) solutions to improve efficiency, service delivery, and client offering across its multiple market sectors. These solutions include Sabre Red 360, which will offer faster and content-rich shopping in a customizable interface. Christopherson will also use Sabre APIs to quickly and securely retrieve multi-source content, including NDC offers.
To simplify post-booking servicing and reduce manual effort, Christopherson will use Sabre Corporation’s (NASDAQ:SABR) Automated Exchanges & Refunds. The Trip Proposal solution will help Christopherson offer personalized, branded itineraries more quickly. Christopherson will use Market Intelligence to get data-driven insights for better performance. The Agency Retailer solution will support flexible distribution models and open new retailing opportunities for Christopherson.
Sabre Corporation (NASDAQ:SABR) is a leading global travel technology company focused on helping airlines, hoteliers, agencies and other partners to retail, distribute, and fulfill travel worldwide.
1. PowerFleet, Inc. (NASDAQ:AIOT)
Share Price: $3.87
Average Price Target Upside Potential According to Analysts: 132.56%
Number of Hedge Fund Holders: 24
PowerFleet, Inc. (NASDAQ:AIOT) is one of the best technology penny stocks to buy according to analysts. On July 10, PowerFleet, Inc. (NASDAQ:AIOT) announced a new automated AI risk intervention application, an innovative AI video module. This application is powered by an expert AI automation engine and it is designed to help companies find and prevent risks in real time.
The app is integrated into the company’s Unity ecosystem and offers a new way to proactively manage safety by replacing the need for people to watch videos manually. Instead of focusing on post-incident review, this enterprise application uses AI to watch and analyze live videos to help organizations make quicker and better decisions to keep their fleets safe.
According to the report by PowerFleet, Inc. (NASDAQ:AIOT), traditional dash cams or legacy telematics systems only review incidents after they occur. However, this new application uses advanced AI processing on both the edge and cloud to spot risky behaviors like fatigue, distraction, and aggressive driving as they happen. It then sends alerts to help prevent accidents.
PowerFleet, Inc. (NASDAQ:AIOT) expects this new automated AI risk intervention module to help lower collision rates, distracted driving, and VOR (Vehicle Off Road) time.
PowerFleet, Inc. (NASDAQ:AIOT) is a leader in AI-powered data solutions that enhance mobile asset performance, safety, efficiency, and workforce productivity. The company’s Unity cloud apps use AI, machine learning, and IoT connectivity to offer mission-critical insights across industrial, logistics, and transportation sectors.
While we acknowledge the potential of AIOT as an investment, 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 AIOT and that has a 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
