In this article, we will take a look at the best high-return technology stocks to buy now.
Technology stocks have long been the driving force behind some of the market’s wealth-creation stories. From IT services and software to semiconductors and consumer electronics, the technology sector continues to shape how the markets work. Even amid a challenging macro landscape, leading technology companies remain committed to innovation, growth, and profitability.
Regarding the excitement around semiconductors and AI infrastructure, CNBC’s Jim Cramer said on May 8 that the stocks are driving the market higher. Cramer highlighted that next week will reveal whether investors will continue to reward every positive AI-powered development.
The publication, titled “Jim Cramer says ‘it’s not too late’ to own AI winners powering the market,” outlined that both the Nasdaq Composite and S&P 500 achieved new intraday highs and closed at record levels on Friday. AI names mainly drove this win.
What’s interesting is that the technology sector stood out as the top-performing sector within the S&P 500. While the overall index was up only 2.3%, the technology sector surged 7%. Although Cramer expressed caution against overreliance on the data center complex, he believes the group represents a long-term shift.
Keeping this view in mind, we have compiled a list of the best high-return technology stocks to buy now.
Our Methodology
For this article, we began by filtering for Technology sector stocks with market capitalizations exceeding $1 billion. Next, we shortlisted stocks with at least 50% upside potential, and based on the number of hedge funds holding positions in these stocks. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks were then ranked according to their upside potential.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Elastic N.V. (NYSE:ESTC)
Upside Potential as of May 8, 2026: 50.43%
Number of Hedge Fund Holders: 55
On April 23, Rothschild Redburn started coverage on Elastic N.V. (NYSE:ESTC) with a Neutral rating and a $49 price target. The firm is among the 63% of analysts bullish on the stock, with the remaining 38% Neutral. The one-year median price target of $78 reflects approximately 50% upside potential.
While acknowledging the unpredictability of Elastic N.V. (NYSE:ESTC)’s growth story and past execution record, given its shift to a sales-led model, Rothschild Redburn also warned about the company’s market positioning and platform scale.
For a more optimistic stance, the firm would require clearer communication around the company’s market positioning and growth narrative, along with strengthened execution and headcount productivity. The company’s long-term fundamentals are backed by the large enterprise opportunity and sustained platform adoption across its clientele, making it one of the best high-return technology stocks to buy now. Although Elastic N.V. (NYSE:ESTC) has underperformed the S&P 500 in the past, it has a strong quarterly revenue growth (yoy) of 17.70%.
Elastic N.V. (NYSE:ESTC) is a Netherlands-based AI company that provides software platforms for use across a range of environments. Incorporated in 2012, the company mainly offers Elastic’s Search AI Platform, Elastic Search product, and Elastic Observability.
9. ServiceNow, Inc. (NYSE:NOW)
Upside Potential as of May 8, 2026: 53.28%
Number of Hedge Fund Holders: 118
On May 6, BMO Capital reaffirmed an Outperform rating and a price target of $115 on ServiceNow, Inc. (NYSE:NOW). According to the firm, the company’s platform is defensive due to the following three factors: autonomous execution, governance, and context. The firm believes the long-term revenue outlook may not significantly improve the investor sentiment in the times ahead. Although near-term risks exist, the firm remains positive on the company.
On the same day, Bernstein SocGen Group lifted the price target on ServiceNow, Inc. (NYSE:NOW) to $236 from $226 and reiterated a Market Perform rating. The price rise came after the company’s Analyst Day, where it highlighted plans to increase its Rule of 40 metric to more than 60 from the current 56.
Additionally, ServiceNow, Inc. (NYSE:NOW) projects 2030 subscription revenue of $30 billion, relative to the guidance of nearly $15.75 billion for FY26. Despite underperforming the S&P 500 in terms of returns, the company has quarterly revenue growth (YoY) of 22.10%, making it one of the best high-return technology stocks to buy now. Peter Weed, an analyst at Bernstein SocGen, said that the Analyst Day “added a bullish tailwind” but also “fed the bears who believe any level of deceleration is intolerable.”
ServiceNow, Inc. (NYSE:NOW) is a California-based provider of cloud-based solutions for digital workflows. Incorporated in 2004, the company delivers a diverse range of products, including asset management, customer service management, field service management applications, and source-to-pay operations.
8. Workiva Inc. (NYSE:WK)
Upside Potential as of May 8, 2026: 57.73%
Number of Hedge Fund Holders: 42
On May 7, Alexander Sklar, an analyst at Raymond James, trimmed the price target on Workiva Inc. (NYSE:WK) to $85 from $90 and reiterated an Outperform rating. According to the firm, the company delivered a solid Q1, maintained its full-year growth outlook, and raised its profitability estimates, thanks to greater deal sizes, robust retention, strengthening AI adoption, and market share gains.
The firm further added that Workiva Inc. (NYSE:WK)’s high-teens subscription growth potential, along with incremental EBIT margins rising above 50%, reinforces an appealing risk-reward setup. This comes despite limited upside to guidance in the times ahead.
Looking ahead, Workiva Inc. (NYSE:WK) remains positive about its growth prospects, making it one of the best high-return technology stocks to buy now. Management guides for Q2 2026 revenue in the range of $250 million to $252 million. The growth will mainly be driven by AI-powered innovation and enhanced platform capabilities. While expressing optimism, CEO Marty Vanderploeg said,
“Our Q1 results reflect the strength of our platform and our commitment to innovation. We are well-positioned to capitalize on market opportunities and deliver value to our customers and shareholders.”
Workiva Inc. (NYSE:WK) is an Iowa-based provider of cloud-based reporting solutions. Founded in 2008, the company offers the Workiva platform, audit trail services, and administrator access management, among others.
7. EPAM Systems, Inc. (NYSE:EPAM)
Upside Potential as of May 8, 2026: 58.49%
Number of Hedge Fund Holders: 44
On May 8, Goldman Sachs significantly cut the price target on EPAM Systems, Inc. (NYSE:EPAM) to $110 from $215 and downgraded the stock from Buy to Neutral. According to the firm, the company is experiencing stronger-than-expected pressures on discretionary spending, which are adversely impacting its custom applications segment and broader services business. The analyst further added that the continued lack of discretionary spending momentum among customers will possibly “pose headwinds for the foreseeable future.”
A day earlier, EPAM Systems, Inc. (NYSE:EPAM) delivered its Q1 results, outperforming EPS and revenue by $0.11 and $0.01 billion, respectively. The company’s revenue also increased 7.6% YoY. Despite this, the stock fell 3.71% in pre-market trading.
EPAM Systems, Inc. (NYSE:EPAM) is a Pennsylvania-based provider of digital platform engineering and software development services. Founded in 1993, the company offers engineering, cloud, marketing, and cybersecurity services, among others.
6. Itron, Inc. (NASDAQ:ITRI)
Upside Potential as of May 8, 2026: 58.54%
Number of Hedge Fund Holders: 46
On April 29, Jeff Osborne, an analyst at TD Cowen, cut the price target on Itron, Inc. (NASDAQ:ITRI) to $130 from $145 and maintained a Buy rating. The firm said the company’s Q1 results outperformed expectations due to a pull-forward, which consequently led to Q2 guidance below estimates. According to TheFly, deployment of grid-edge technology is on schedule, with no labor or materials constraints noted.
On the same day, analysts at Roth/MKM also trimmed the price target on Itron, Inc. (NASDAQ:ITRI) to $136 from $150 and reiterated a Buy rating. As highlighted by the firm, the company’s near-term revenue growth outlook appears soft, particularly due to complex projects and transitory regulatory trends. The firm remains positive on the company’s strong backlog and pipeline clarity, making it one of the best high-return technology stocks to buy now.
The company’s asset-light shift is expected to continue to enhance wallet share, margins, and sentiment, Roth/MKM noted. While Itron, Inc. (NASDAQ:ITRI)’s share price returns continue to underperform the S&P 500, it delivers a profit margin of 12.31% and ROE (ttm) of 18.58%.
Itron, Inc. (NASDAQ:ITRI) is a Washington-based provider of technology, solutions, and services that help manage energy, water, and smart city operations. Founded in 1977, the company operates through Device Solutions, Networked Solutions, Outcomes, and Resiliency Solution segments.
5. ServiceTitan, Inc. (NASDAQ:TTAN)
Upside Potential as of May 8, 2026: 59.26%
Number of Hedge Fund Holders: 48
Based on the consensus median price target, ServiceTitan Inc. (NASDAQ:TTAN) reflects approximately 59% upside potential from the current level. The majority of analysts are bullish on the stock as of May 8. On April 17, Needham reaffirmed a Buy rating and a price target of $100 on ServiceTitan, Inc. (NASDAQ:TTAN).
Scott Berg, the analyst at Needham, engaged with the company’s two existing customers: a VP at a $750 million private equity rollup and the owner of a $10 million HVAC firm. Both customers shared encouraging feedback related to the momentum of innovation and new modules.
Among the new modules, Sales Pro and Atlas AI stood out. The customers also highlighted that newer offerings still have room to mature, with them adopting a “wait and see” approach to validate the reliability first. According to Needham, the customer checks are broadly positive. With ServiceTitan, Inc. (NASDAQ:TTAN) sustaining a key market position that is only widening, it remains one of the best high-return technology stocks to buy now.
Three days earlier, Piper Sandler trimmed the price target on ServiceTitan, Inc. (NASDAQ:TTAN) to $100 from $120 and maintained an Overweight rating. The firm believes the current year “has been rough for enterprise software.”
ServiceTitan, Inc. (NASDAQ:TTAN) is a California-based provider of an end-to-end cloud-based software platform. Incorporated in 2007, the company offers a platform for contractors, pest-control software, business-management software, and several FinTech products.
4. Grab Holdings Limited (NASDAQ:GRAB)
Upside Potential as of May 8, 2026: 62.60%
Number of Hedge Fund Holders: 61
On May 7, TheFly reported that Morgan Stanley trimmed the price target on Grab Holdings Limited (NASDAQ:GRAB) to $5.90 from $6.40 and reiterated an Overweight rating. Although risks such as macroeconomic and regulatory uncertainties are affecting the stock, the firm believes that the first quarter “demonstrated that growth, margins and capital returns can compound together.”
Back on May 5, Benchmark maintained a Buy rating and a price target of $7 on Grab Holdings Limited (NASDAQ:GRAB) after Q1 results. What stood out the most in the company’s financial results were the revenue and profitability beat, with revenue rising 20% YoY over the past twelve months.
Benchmark believes the company’s operating model is improving, thanks to disciplined execution, product innovation, and AI-related efficiencies. However, risks like fuel fluctuations, regulatory clarity in Indonesia, and the overall consumer health in fintech exist, the firm asserted, adding that Grab Holdings Limited (NASDAQ:GRAB) has adequate tools to tackle these challenges. No wonder the company is among the best high-return technology stocks to buy now.
Grab Holdings Limited (NASDAQ:GRAB) is Southeast Asia’s leading superapp, ranked by GMV across food delivery, mobility, and financial services. From necessities to earning opportunities, the company claims to be an all-in-one platform.
3. Zeta Global Holdings Corp. (NYSE:ZETA)
Upside Potential as of May 8, 2026: 76.11%
Number of Hedge Fund Holders: 47
On May 1, RBC Capital elevated the price target on Zeta Global Holdings Corp. (NYSE:ZETA) to $29 from $27 and reiterated an Outperform rating. While highlighting that the company’s guidance appears conservative, given the early Athena traction, the firm anticipates the company to continue posting beats. With that said, the firm lifted the price target to better reflect raised estimates and AI traction.
What’s truly impressive is the company’s 3-year return, which was 29.25% higher than the S&P 500’s return of 77.16%. Despite not being profitable, Zeta Global Holdings Corp. (NYSE:ZETA) remains positive about its future prospects, with forecasted EPS and revenue growth in the following quarters. With that, the company also expects sustained momentum from its AI initiatives, with a high-end GAAP EPS projection for this year. This makes it one of the best high-return technology stocks to watch.
Following the Q1 success, B. Riley also lifted the price target on Zeta Global Holdings Corp. (NYSE:ZETA) to $30 from $28 and maintained a Buy rating on May 1. The firm noted the company’s super-scaled customer expansion, broad-based strength, and early traction with Athena.
Zeta Global Holdings Corp. (ZETA) is a New York-based operator of an omnichannel data-driven cloud platform. Founded in 2007, the company provides enterprises with consumer intelligence and marketing automation software.
2. Pagaya Technologies Ltd. (NASDAQ:PGY)
Upside Potential as of May 8, 2026: 82.48%
Number of Hedge Fund Holders: 41
On May 7, Pagaya Technologies Ltd. (NASDAQ:PGY) delivered Q1 2026 results, significantly surpassing EPS estimates. The company delivered EPS of $0.73 and revenue of $318 million, versus the forecasted $0.20 and $323.63 million. With a quarterly earnings growth (YoY) of 212.90%, there’s no doubt the company’s 2026 performance is off to a strong start.
Another standout highlight was the company’s net income of $25 million, which surged 213% from the previous year’s $8 million. Pagaya Technologies Ltd. (NASDAQ:PGY) achieved its fifth consecutive quarter of GAAP net income profitability. Although the macroeconomic environment was challenging, the company’s product strategy and operational efficiency, coupled with the focus on enhancing its multi-channel platform, meaningfully contributed to the results.
Looking ahead, Pagaya Technologies Ltd. (NASDAQ:PGY) expects sustained EPS and revenue momentum. The company projects EPS growth to $0.83 in the second quarter, with revenue anticipated to reach $371 million. The ongoing product diversification and expanded partnerships reinforce this positive outlook.
As stated by CEO Gal Krubiner,
“Our consistent profitability and strategic diversification underscore Pagaya’s resilience in a volatile market. We are committed to driving growth through innovation and operational excellence.”
Pagaya Technologies Ltd. (NASDAQ:PGY) is a New York-based product-focused technology company specializing in data science and proprietary AI technology. Founded in 2016, the company mainly serves the financial market.
1. Klaviyo, Inc. (NYSE:KVYO)
Upside Potential as of May 8, 2026: 98.81%
Number of Hedge Fund Holders: 43
On May 7, Raimo Lenschow, an analyst at Barclays, cut the price target on Klaviyo, Inc. (NYSE:KVYO) to $25 from $31 and reaffirmed an Overweight rating. This comes after the company’s Q1 results, which demonstrated enterprise and international momentum with “solid early signs” from its AI approach. The firm believes muted seasonal dynamics resulted in the expectations miss.
Several other analysts revisited their stance on Klaviyo, Inc. (NYSE:KVYO) on the same day. KeyBanc trimmed the price target on the company from $40 to $35 and maintained an Overweight rating. The firm highlighted that the company delivered a beat-and-raise quarter to start the year, yet increases were relatively modest compared to its usual standards. This, combined with the CFO’s planned departure later this year, may likely reverse the gains it has posted over the past week, the firm asserted.
Stifel shares a similar view, citing CFO transition, AI investments, and new carrier fees in messaging. The firm lowered its price target on the company to $28 from $35. Growth drivers like enterprise and international customers, along with product innovation, drove the firm’s Buy rating.
Klaviyo, Inc. (NYSE:KVYO) is a Massachusetts-based cloud-based SaaS platform offering CRM, Klaviyo Data Platform, Advanced KDP, and Marketing Agent, among others. Incorporated in 2012, the company mainly serves entrepreneurs, SMEs, and other enterprises.
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