In this article, we will list the 5 Best Beaten-Down Technology Stocks to Buy Now. Please visit 10 Best Beaten-Down Technology Stocks to Buy Now if you would like to see the extended list and the methodology behind it.
5. Adobe Inc. (NASDAQ:ADBE)
Year-to-Date Performance: -38.49%
Number of Hedge Fund Holders: 86
Adobe Inc. (NASDAQ:ADBE) is one of the best beaten-down technology stocks to buy now. On July 2, HSBC upgraded Adobe Inc. (NASDAQ:ADBE) to a Buy from a Hold and raised the price target to $308 from $282. While the stock has shed nearly 38% in market value year to date, the new price target represents significant upside potential as the stock is trading at about $210.
HSBC upgraded the stock and bumped the price target, buoyed by the company’s resilience against AI-powered competitors. In a research note, the firm insists the market is overestimating the adverse impact of AI-based design tools.
The sentiments come on the heels of the company delivering impressive second-quarter fiscal 2026 results that showed 12.7% revenue growth. Adobe’s guidance of 11.8% full-year revenue growth also underscored underlying growth.
According to HSBC, it has yet to see the material impact of AI competitors on Adobe. Consequently, it has reevaluated the risk associated with the competitive threats in play. The research firm has also reiterated that Adobe’s platform remains sticky due to user familiarity with workflows and embedded AI-powered features.
Adobe Inc. (NASDAQ:ADBE) is a global technology company that builds software for digital creation, document management, and marketing. Their tools are the industry standard for professionals and everyday creators, powering everything from photo and video editing to graphic design and PDF workflows.
4. Palantir Technologies Inc. (NASDAQ:PLTR)
Year-to-Date Performance: -30.45%
Number of Hedge Fund Holders: 96
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best beaten-down technology stocks to buy now. On June 29, Palantir Technologies Inc. (NASDAQ:PLTR) entered into a strategic partnership with Nvidia to deliver an intelligence engine to run the latter’s open models in sovereign environments.
Under the terms of the agreement, Nvidia’s AI platform will be combined with Palantir’s critical infrastructure products, including AIP, Ontology, Foundry, and Apollo. The integrated offerings enable government agencies to train AI on their own data and retain full ownership of the resulting models. The new offering builds on a previously announced Sovereign AI Operating System Reference Architecture.
The integration of Palantir’s infrastructure with Nvidia’s AI and Nemotron models will allow US government agencies to unleash the full power of LLMs while eliminating any security risks. According to Nvidia founder and CEO Jensen Huang, the partnership will give government agencies a secure, customizable, and fully controlled foundation for building mission-critical AI systems.
Palantir Technologies Inc. (NASDAQ:PLTR) builds software platforms—such as Gotham, Foundry, and AIP (Artificial Intelligence Platform)—that act as central operating systems for large-scale data integration and analysis. It helps both government agencies and commercial enterprises synthesize fragmented data, make complex operational decisions, and safely deploy AI models on private networks.
3. Salesforce Inc. (NYSE:CRM)
Year-to-Date Performance: -38.23%
Number of Hedge Fund Holders: 101
Salesforce Inc. (NYSE:CRM) is one of the best beaten-down technology stocks to buy now. On July 1, Guggenheim upgraded Salesforce Inc. (NYSE:CRM) to a Buy from Neutral and set a $228 price target. The new price target implies significant upside potential, as the stock has pulled back about 38% year to date to $163.23 a share.
The stock has come under pressure amid concerns that agentic artificial intelligence will disrupt its traditional Software-as-a-Service business model. While Salesforce is not expected to be a major winner amid AI disruptions, Guggenheim insists the current stock price reflects extreme conditions. For instance, the current stock price implies the stock will decline by 5% in perpetuity, something that the research firm does not agree with.
Guggenheim’s John DiFucci has termed the fatal AI bear case on the software giant as a ‘hallucination’. In the first quarter of fiscal 2027, the company delivered solid financial results, with 13% revenue growth to $11.13 billion and non-GAAP EPS of $3.88, topping consensus estimates of $3.12 a share.
Salesforce Inc. (NYSE:CRM) is a cloud-based software company that provides Customer Relationship Management (CRM) solutions. It offers a centralized platform for businesses to manage sales, customer service, marketing, and e-commerce, while integrating AI agents and unified customer data to build stronger relationships and automate daily workflows.
2. Oracle Corporation (NYSE:ORCL)
Year-to-Date Performance: -25.12%
Number of Hedge Fund Holders: 115
Oracle Corporation (NYSE:ORCL) is one of the best beaten-down technology stocks to buy now. On July 1, Blair added Oracle Corporation (NYSE:ORCL) to its analyst conviction list. According to the research firm, the company has emerged as a major beneficiary of the artificial intelligence buildout as hyperscale cloud commitments continue to drive strong revenue visibility.
Hyperscalers are increasingly signing multiyear cloud capacity commitments, thereby strengthening Oracle’s revenue base. Additionally, full-stack capabilities spanning the OCI cloud and system-of-record applications are increasingly supporting accelerated revenue growth.
Blair insists Oracle is trading at a discount relative to peers in AI infrastructure despite improving fundamentals. Consequently, there is room for upward earnings revisions and multiple expansion to drive shares higher in the second half of the year.
In June, Oracle’s total workforce declined by 13% as the cloud computing giant continued restructuring its business, driven by the adoption of AI across its operations.
Oracle Corporation (NYSE:ORCL) is a massive multinational technology company that builds enterprise software, database systems, and cloud infrastructure used by businesses and governments worldwide. Their technology manages critical backend operations like financial transactions, supply chains, and human resources.
1. Microsoft Corporation (NASDAQ:MSFT)
Year-to-Date Performance: -21.13%
Number of Hedge Fund Holders: 282
Microsoft Corporation (NASDAQ:MSFT) is one of the best beaten-down technology stocks to buy now. On July 1, Business Insider reported that Microsoft Corporation (NASDAQ:MSFT) is poised to cut its workforce by under 2.5%. The cut, which will affect thousands of employees, is part of an effort to control costs.
The cuts will mostly affect personnel in sales and consulting. In addition, the company is targeting cuts at the Xbox gaming division. Microsoft has set a precedent of cutting jobs at the start of a new fiscal year. Last year, it eliminated 6,000 roles in May and an additional 9,000 roles, representing 4% of its total workforce, in July.
The wave of job cuts underscores the tech giant’s bid to lower operating costs as it ramps up spending on artificial intelligence. Additionally, the job cuts have come amid heightened concerns that AI will replace a significant chunk of its software services. The concerns have led the stock to slump about 19% over the past month.
On Monday, the company confirmed that it would cut 4,800 jobs, or about 2.1% of its global workforce.
Microsoft Corporation (NASDAQ:MSFT) is a multinational technology company that develops, licenses, and supports a wide range of computer software, devices, and cloud-based solutions. Its core operations include software-as-a-service, cloud computing, and gaming & Hardware.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about the cheapest AI stock.
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