In this article, we will list the 5 Best Technology Penny Stocks to Invest In According to Hedge Funds. Please visit 10 Best Technology Penny Stocks to Invest In According to Hedge Funds to see the extended list and the methodology behind it.
5. Veritone Inc. (NASDAQ:VERI)
Number of Hedge Fund Holders: 21
Veritone Inc. (NASDAQ:VERI) is one of the best technology penny stocks to invest in according to hedge funds. On April 15, Veritone launched its next-gen Discovery Content Intelligence solution, featuring a sophisticated AI agent named VERI. The platform is designed to transform media and entertainment archives into conversational assets, moving beyond traditional keyword searches to NL interaction. By leveraging Veritone’s aiWARE platform, organizations can now query, summarize, and analyze vast audio and video libraries in near real-time to uncover insights that manual workflows often overlook.
The VERI AI agent uses a multi-model cognitive architecture where LLMs act as specialized reasoning engines within a deterministic environment. This agentic design allows the system to plan and execute complex macro-actions, such as identifying brand mentions, tracking sentiment, and verifying advertising placements with timestamp-level accuracy.
Unlike monolithic AI models, this architecture separates reasoning from data processing to ensure the precision and reliability required for enterprise-grade media analysis and ad verification. In addition to the new AI capabilities, the update introduces a modernized user interface intended to unify workflows across production, sales, and management teams.
Veritone Inc. (NASDAQ:VERI) provides software services to public sector and commercial clients. It offers a software application that can transform unstructured data from sources like video, audio, and text into actionable intelligence.
4. Telos Corp. (NASDAQ:TLS)
Number of Hedge Fund Holders: 22
Telos Corp. (NASDAQ:TLS) is one of the best technology penny stocks to invest in according to hedge funds. On April 22, Telos announced the opening of a new TSA PreCheck enrollment center at Elko Regional Airport/EKO in Nevada. This expansion brings local enrollment access to travelers in northeastern Nevada’s Great Basin region, supporting industries such as mining, ranching, and tourism. The center operates by appointment only from Monday through Thursday, eliminating the need for regional residents to travel long distances to secure expedited screening status.
The new location is part of Telos’ broader mission to expand its national enrollment network, which now includes 500+ locations across the US. TSA PreCheck members enjoy access to expedited security at 200+ airports, allowing them to keep shoes and jackets on while leaving electronics and liquids in their carry-on bags. Telos Corp. (NASDAQ:TLS) serves as an authorized provider, facilitating both new applications and renewals for the program.
Airport officials highlighted that the partnership significantly enhances the passenger experience at EKO, a vital transportation hub for the region. Travelers can pre-enroll and schedule their required in-person appointments through the official Telos TSA PreCheck website.
Telos Corp. (NASDAQ:TLS) offers cyber, cloud-based, and corporate security services worldwide. It provides automated cyber risk management and compliance, AI services, as well as consulting, operations, and engineering solutions.
3. SmartRent Inc. (NYSE:SMRT)
Number of Hedge Fund Holders: 26
SmartRent Inc. (NYSE:SMRT) is one of the best technology penny stocks to invest in according to hedge funds. On April 27, SmartRent launched a strategic value-added reseller/VAR program to expand its market reach into the small and mid-market multifamily housing segments. SKBM Smart Technology, a long-term installation partner, has been named the program’s first reseller. This initiative is a core component of the company’s “Vision 2028” program and its “March to One Million” IoT-unit goal, aiming to capture a larger share of the 40-million-unit US rental market.
While SmartRent currently maintains a strong presence among top-tier multifamily portfolios (with over 900,000 IoT units already deployed), the company identifies the broader mid-market as a substantial growth vector. By partnering with resellers like SKBM, SmartRent can provide more localized, high-touch engagement to smaller operators. The CEO noted that this expansion of the go-to-market team will complement the company’s dedicated in-house sales force to drive durable revenue growth.
SKBM Smart Technology will use its established sales teams and industry relationships to deliver SmartRent Inc.’s (NYSE:SMRT) smart community and operations solutions to these new segments. Bill Myers, Co-Founder and COO of SKBM, expressed that his team is uniquely positioned to meet the specific needs of property owners in this expansive sector.
SmartRent Inc. (NYSE:SMRT) offers AI-enabled smart building solutions and management software, with its integrated hardware and cloud-based platforms. It is included in our list of the best AI stocks.
2. PowerFleet Incorporated (NASDAQ:AIOT)
Number of Hedge Fund Holders: 29
PowerFleet Incorporated (NASDAQ:AIOT) is one of the best technology penny stocks to invest in according to hedge funds. On April 27, Powerfleet launched Vision 360 Plus, an AI-powered video SaaS solution designed to provide 360° coverage and enhanced safety for mobile assets. Developed in partnership with TELUS, a global communications leader with over 20 million customer connections, the solution integrates Powerfleet’s Unity video technology with TELUS’ expansive connectivity and distribution network.
This collaboration aims to accelerate the adoption of high-margin AIoT services among enterprise and mid-market fleet operators across North America. The Vision 360 Plus system addresses critical fleet challenges by eliminating blind spots and providing AI-driven protection to reduce collisions and insurance claims.
By delivering real-time operational visibility and predictive risk management, the platform enables fleet managers to implement automated coaching workflows and improve driver performance. The launch underscores PowerFleet Incorporated’s (NASDAQ:AIOT) ongoing efforts to unify data through its Unity platform, allowing for the harmonization of information regardless of the source.
PowerFleet Incorporated (NASDAQ:AIOT) is a SaaS provider that specializes in AIoT. It offers the Unity platform, which is part of its Unity solutions portfolio. The platform helps integrate AIoT devices and business systems with a data highway that generates AI-enabled insights for customers. The company also provides SaaS-based unity modules that include vehicle, video, and in-warehouse IoT solutions.
1. CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC)
Number of Hedge Fund Holders: 32
CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) is one of the best technology penny stocks to invest in according to hedge funds. On April 15, CCC Intelligent Solutions integrated consumer financing directly into its CCC ONE platform, a move designed to help collision repair shops secure more jobs by lowering financial barriers for vehicle owners. This new capability, powered by Sunbit, allows repairers to offer flexible payment plans for out-of-pocket costs and insurance deductibles.
With self-pay repairs now making up more than 25% of repair orders in the CCC ONE system, the integration addresses a growing segment of the market where rising costs often lead to delayed approvals. The financing process is embedded within the estimating workflow, enabling shops to provide immediate payment options or pre-qualification tools through their websites and Carwise profiles.
Sunbit offers an approval rate of over 90% with a fast decisioning process that does not require a hard credit check. For consumers, the service provides 0% interest options with no late fees or hidden costs, while the repair shop receives payment upfront with zero repayment risk, ensuring stable cash flow. CollisionRight, a major operator of 130 centers, has already reported increased service acceptance and faster vehicle turnaround times using the tool.
CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) serves property and casualty/P&C insurance companies with cloud, mobile, telematics, hyperscale technologies, and applications, including a cloud-based SaaS platform for digitized workflows.
While we acknowledge the potential of CCC 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 CCC and that has 100x upside potential, check out our report about the cheapest AI stock.
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