In this article, we will discuss the 5 Best Rising Tech Stocks to Buy According to Hedge Funds. For deeper discussion and analysis, read 8 Best Rising Tech Stocks to Buy According to Hedge Funds.
5. Innodata Inc. (NASDAQ:INOD)
One-month Return: 121.33%
Number of Hedge Fund Holders: 23
On May 14, Wedbush raised its price target on Innodata Inc. (NASDAQ:INOD) to $100 from $80 while maintaining an Outperform rating on the shares. The firm stated that the higher target reflects increased confidence in the company’s long-term growth runway following what it described as “monster” first-quarter results and an improved outlook. Wedbush reiterated its view that Innodata is positioned to emerge as a major beneficiary of accelerating artificial intelligence adoption trends, citing the company’s expanding role in supporting enterprise AI initiatives and data infrastructure development.
Earlier, on May 8, Wedbush increased its price target on Innodata Inc. (NASDAQ:INOD) to $80 from $75 while also reiterating an Outperform rating. According to the firm, the company delivered exceptionally strong first-quarter results featuring substantial beats across key financial metrics while raising fiscal 2026 revenue growth guidance to more than 40% year over year. Wedbush noted that the performance demonstrates Innodata’s ability to capitalize on growing demand for AI-related data solutions and highlighted the company’s continued inclusion on the IVES AI 30 list as additional validation of its strategic positioning within the AI ecosystem.
Founded in 1988 and headquartered in Ridgefield Park, Innodata Inc. (NASDAQ:INOD) is a global data engineering company that develops foundational data and software platforms used to build, train, and deploy artificial intelligence solutions. The company supports enterprise AI adoption through services and technologies designed to improve data quality, scalability, and operational efficiency.
4. Bandwidth Inc. (NASDAQ:BAND)
One-month Return: 164.30%
Number of Hedge Fund Holders: 15
On May 15, Citizens raised its price target on Bandwidth Inc. (NASDAQ:BAND) to $70 from $45 while maintaining an Outperform rating on the shares. According to the firm, management delivered a notably optimistic assessment of current business trends, with investor attention centered on the company’s exclusive partnership with Salesforce, expanding monetization opportunities tied to voice artificial intelligence, and rapidly growing software services’ annual recurring revenue. Citizens also highlighted Bandwidth’s differentiated position relative to Twilio within enterprise voice infrastructure, arguing that the company’s owned-network model and strategic positioning continue to support a favorable long-term growth outlook despite the stock’s substantial year-to-date appreciation.
The previous day, Needham analyst Joshua Reilly raised the firm’s price target on Bandwidth Inc. (NASDAQ:BAND) to $60 from $45 while reiterating a Buy rating following discussions with CEO David Morken and CFO Daryl Raiford at the Needham Technology & Media Conference. Key topics included the significant competitive advantages associated with the company’s owned communications network, the emerging Agentforce contact center opportunity, and the potential for second-half volume growth to exceed current guidance expectations. Needham also pointed to voice AI as a potentially major long-term growth driver capable of accelerating enterprise adoption and expanding revenue opportunities across Bandwidth’s communications platform.
Founded in 1999 and headquartered in Raleigh, Bandwidth Inc. (NASDAQ:BAND) is a cloud communications software company that provides APIs and infrastructure enabling developers and enterprises to integrate voice calling, messaging services, and emergency communications directly into applications and digital platforms. The company’s infrastructure-centric approach allows enterprises to build scalable communications solutions while maintaining greater operational control and reliability.
3. Trio-Tech International (NYSEAMERICAN:TRT)
One-month Return: 185.21%
Number of Hedge Fund Holders: 1
On May 14, Trio-Tech International (NYSEAMERICAN:TRT) stated that it expects increasing demand for its semiconductor back-end testing services, driven by customer programs involving advanced CPU and GPU computing applications as well as electric vehicle semiconductor technologies. In response to rising demand from North American and European semiconductor customers, the company announced the execution of a lease for an additional 104,000 square feet in Perai, Penang, Malaysia, significantly expanding its testing capacity for AI-related semiconductor services across Southeast Asia. Management also indicated that the company expects stronger contributions from its Industrial Electronics segment, supported by growing demand across industrial, aerospace, and commercial applications. The company reiterated its commitment to operational efficiency, disciplined capital allocation, and maintaining strong liquidity to support long-term profitability and expansion initiatives.
On the same day, Trio-Tech International (NYSEAMERICAN:TRT) reported third-quarter revenue of $16.5 million compared to $7.4 million in the prior-year period, reflecting substantial year-over-year growth. CEO S.W. Yong stated that the company benefited from sustained demand within its Semiconductor Back-End Solutions segment, particularly from customers developing advanced AI computing and EV automotive chips requiring high reliability and performance validation. Management also disclosed that after previously announcing approximately $5.3 million in orders for high-performance Burn-In Boards supporting next-generation AI GPU platforms, the company subsequently secured an additional $2.5 million in related orders. The company believes its expanding regional footprint, strengthened balance sheet, and growing semiconductor testing activity position it favorably for continued participation in high-growth AI and EV markets.
Founded in 1958 and headquartered in Van Nuys, Trio-Tech International (NYSEAMERICAN:TRT) provides semiconductor testing services, equipment manufacturing, and distribution solutions for semiconductor and industrial electronics markets. While maintaining corporate headquarters in California, the company also operates principal executive and regional headquarters in Singapore, supporting its extensive Asian semiconductor operations.
2. MaxLinear, Inc. (NASDAQ:MXL)
One-month Return: 295.46%
Number of Hedge Fund Holders: 26
On May 14, MaxLinear, Inc. (NASDAQ:MXL) announced the availability of its Trinity platform based on the URX processor family, designed to deliver carrier-grade bidirectional wireless backhaul speeds of up to 10Gbps. The company stated that the Trinity platform combines the URX850 system-on-chip with a cloud-native API framework that integrates directly with MaxLinear’s millimeter-wave and microwave modem technologies. According to management, the platform is specifically engineered to support next-generation intelligent networks through cloud-managed and AI-optimized backhaul infrastructure, enabling telecommunications operators to expand 5G coverage while reducing deployment and operational expenses through automation and real-time network intelligence. The company added that OEM products utilizing the Trinity platform are expected to launch during the first half of 2027.
Earlier, on May 12, Benchmark initiated coverage of MaxLinear, Inc. (NASDAQ:MXL) with a Buy rating and a $28 price target. The initiation reflects growing optimism surrounding the company’s ability to capitalize on increasing demand for advanced connectivity infrastructure tied to 5G deployments, AI data center interconnects, and next-generation wireless networking applications. Analysts continue to view MaxLinear’s portfolio of high-performance connectivity semiconductors as strategically positioned to address rising bandwidth requirements across enterprise, telecommunications, and cloud infrastructure markets.
Founded in 2003 and headquartered in Carlsbad, MaxLinear, Inc. (NASDAQ:MXL) is a fabless semiconductor company specializing in high-performance radio-frequency, analog, and mixed-signal systems-on-chip technologies. Its products support multi-gigabit connectivity across smart homes, 5G and 6G wireless infrastructure, AI data center optical interconnects, and industrial networking applications.
1. Rackspace Technology, Inc. (NASDAQ:RXT)
One-month Return: 337.59%
Number of Hedge Fund Holders: 8
On May 12, BMO Capital raised its price target on Rackspace Technology, Inc. (NASDAQ:RXT) to $5 from $2 while maintaining a Market Perform rating following the company’s first-quarter results. According to the analyst, one of the most significant developments during the quarter was Rackspace’s memorandum of understanding with Advanced Micro Devices focused on integrating AMD CPUs and GPUs into governed AI infrastructure solutions. BMO noted that the quarter reinforced its view that Rackspace is pursuing a strategic approach centered on partnerships with leading AI ecosystem companies such as Palantir Technologies and AMD in order to strengthen its positioning for regulated and enterprise AI workloads.
Previously, on May 7, Rackspace Technology, Inc. (NASDAQ:RXT) and Advanced Micro Devices announced a multiyear strategic partnership framework designed to create an Enterprise AI Cloud tailored for regulated enterprises and sovereign workloads. Under the agreement, AMD Instinct GPUs and EPYC CPUs are expected to be integrated into a fully managed and governed enterprise AI stack operated by Rackspace. The companies stated that the partnership aims to create a new category of managed enterprise AI infrastructure by combining dedicated AMD compute resources with Rackspace’s managed operational model. The initiative is intended to deliver a fully integrated AI infrastructure platform spanning bare-metal compute, inference tooling, governed runtime environments, and enterprise-grade service-level agreements calibrated to sovereignty, security, and compliance requirements.
Founded in 1998 and headquartered in San Antonio, Rackspace Technology, Inc. (NASDAQ:RXT) is a global provider of multi-cloud, hybrid-cloud, and enterprise AI infrastructure solutions. The company specializes in IT consulting, cloud migration, cybersecurity, and managing enterprise workloads across major cloud and infrastructure platforms.
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