5 Best Low Priced Technology Stocks to Buy According to Hedge Funds

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1. Unity Software Inc. (NYSE:U)

Number of Hedge Fund Holders: 80

Unity Software Inc. (NYSE:U) is one of the best low priced technology stocks to buy according to hedge funds. On May 7, Unity reported Q1 2026 financial results, with total revenue rising 17% year-over-year to $508 million. Total strategic revenue grew 35% to $432 million, driven by a 49% surge in Strategic Grow revenue to $279 million and a 15% increase in Strategic Create revenue to $154 million. Non-strategic revenue declined 34% to $76 million, primarily due to the sunsetting of the ironSource Ad network and the planned divestiture of the Supersonic publishing business.

The company reported a GAAP net loss of $347 million, up from a net loss of $78 million in the prior year’s quarter. This loss includes $279 million in impairment charges tied to the ironSource sunset and Supersonic divestiture. Conversely, Adjusted EBITDA increased significantly to $138 million, expanding its margin to 27%. Net cash provided by operating activities reached $71 million, and free cash flow rose to $66 million.

For Q2 2026, Unity Software Inc. (NYSE:U) expects total revenue between $505 million and $515 million. Strategic revenue is projected to grow 29% to 32% year-over-year to a range of $455 million to $465 million. Additionally, the company forecasts Adjusted EBITDA to land between $130 million and $135 million, representing a year-over-year increase of 44% to 49%.

Unity Software Inc. (NYSE:U) offers a platform used to deploy, develop, and scale games and interactive experiences across personal computers, mobile phones, consoles, and extended reality devices. Its platform provides AI solutions. The company also offers Create Solutions and Grow Solutions.

While we acknowledge the potential of U 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 U and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 9 Best Biotech Penny Stocks to Buy in 2026 and 12 Best AI Stocks Under $50 to Buy Right Now.

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