5 Best Small Cap Tech Stocks to Buy According to Hedge Funds 

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1. nCino, Inc. (NASDAQ:NCNO)

Number of Hedge Fund Holders: 47

nCino, Inc. (NASDAQ:NCNO) is one of the best small cap tech stocks to buy according to hedge funds. Citizens cut the price target on nCino, Inc. (NASDAQ:NCNO) to $23 from $32 on May 18, maintaining an Outperform rating on the shares. It told investors in a research note that the company remains an attractive software name despite investor concerns that agentic AI could eventually automate some of the workflows its platform supports. It believes that AI adoption in financial services is still in the early stages with uncertain ROI, adding that the current valuation appears to already reflect much of the long-term disintermediation risk while also preserving upside if nCino successfully incorporates AI into its offering.

nCino, Inc. (NASDAQ:NCNO) also received a rating update from Goldman Sachs on May 14, with the firm lowering the price target on the stock down to $21 from $24 while maintaining a Neutral rating on the shares after attending the company’s nSight Conference that week.

nCino, Inc. (NASDAQ:NCNO) provides cloud-based software applications for financial institutions in the United States and internationally.

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

READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.

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