In this article, we will list the 5 Overlooked Tech Stocks to Invest in Now. Please visit 8 Overlooked Tech Stocks to Invest in Now if you’d like to see an extended list and how we came up with the list of overlooked tech stocks to buy.
5. Vertex, Inc. (NASDAQ:VERX)
Upside Potential: 35.78%
Number of Hedge Fund Holders: 28
With strong upside potential, Vertex, Inc. (NASDAQ:VERX) ranks among the overlooked tech stocks to invest in now. A bullish new analyst call follows a first quarter that beat guidance and a strategic acquisition aimed at expanding the company’s global reach.
On June 29, 2026, TD Cowen initiated coverage of Vertex, Inc. (NASDAQ:VERX) with a “Buy” rating and a $14 price target. The firm called Vertex a leading global indirect tax and e-invoicing software vendor, pointing to reasonable consensus expectations and a depressed valuation following the stock’s recent underperformance as reasons sentiment could improve alongside execution. TD Cowen said it expects Vertex to sustain double-digit revenue growth through at least fiscal 2028. The stock is down over 35% year-to-date.
That initiation followed first-quarter 2026 results Vertex, Inc. (NASDAQ:VERX) reported in May, with total revenue of $196.6 million, up 11.1% year-over-year, and adjusted EBITDA of $44.1 million, above the high end of guidance. CEO Chris Young said the quarter showed stability across customer demand and retention despite a mixed macro environment.
During the quarter, Vertex, Inc. (NASDAQ:VERX) acquired Brinta, an AI-first e-invoicing startup in Latin America, which Young said will speed up country coverage in the region with AI-native compliance architecture. Young also pointed to the company’s April Value Creation Plan, designed to boost profitability and free cash flow.
Looking ahead, Vertex, Inc. (NASDAQ:VERX) guided for full-year 2026 revenue of $823.5 million to $831.5 million and cloud revenue growth of 25%. CFO John Schwab said cost actions from the Value Creation Plan are expected to save $60 million to $70 million annually beginning in 2027.
Vertex, Inc. (NASDAQ:VERX), a leading provider of indirect tax and e-invoicing solutions, uses AI-powered offerings to accelerate enterprise revenue growth, profitability, and operational efficiency in global markets.
4. NICE Ltd. (NASDAQ:NICE)
Upside Potential: 37.09%
Number of Hedge Fund Holders: 24
NICE Ltd. (NASDAQ:NICE), which offers strong upside potential, ranks among the overlooked tech stocks to invest in now. Two fresh partner and customer wins this week highlight the growing adoption of the company’s AI platform across its enterprise ecosystem.
On July 2, 2026, NICE Ltd. (NASDAQ:NICE) said European technology company Sopra Steria has deployed its CXone platform to equip customer service agents with agentic AI capabilities. Sopra Steria employs about 50,000 people across 30 countries.
The rollout spans France, Poland and India, supporting more than 2,000 employees, and integrates with Sopra Steria’s existing ITSM tools, Active Directory, and monitoring systems. Sopra Steria has also rolled out Copilot for Agents across its service centers, enabling about 800 agents while supporting the company’s goal of answering 90% of calls within 20 seconds. Sopra Steria’s CTO Xavier Deweer called the deployment, completed within three months, a pivotal step in the company’s AI-driven transformation.
That announcement followed news on July 1, 2026, that NICE Ltd. (NASDAQ:NICE) launched its AI Specialization Program, a criteria-based recognition track within its NiCE 360 Partner Program. The company named six inaugural AI Specialization partners, including Accenture, Cirrus, Deloitte, TTEC and Route101. Chief Partner Officer Dorothy Copeland said the program gives enterprises a verified way to identify partners proven to deliver AI at scale, with additional specializations planned through 2026 and 2027.
NICE Ltd. (NASDAQ:NICE) is a provider of AI-powered cloud platforms for customer engagement, financial crime and compliance, as well as digital evidence management.
3. Braze, Inc. (NASDAQ:BRZE)
Upside Potential: 41.74%
Number of Hedge Fund Holders: 28
With strong upside potential, Braze, Inc. (NASDAQ:BRZE) ranks among the overlooked tech stocks to invest in now. A fresh Wall Street endorsement follows a quarter of accelerating growth, giving investors a clearer read on how the AI-powered customer engagement platform is scaling.
On June 24, 2026, Goldman Sachs initiated coverage of Braze, Inc. (NASDAQ:BRZE) with a “Buy” rating and a $34 price target. The firm said Braze holds strong positioning to keep taking share from legacy marketing tools as AI increases pressure on outdated tech within organizations, and pointed to Braze’s ability to help marketers orchestrate sophisticated campaigns as customer expectations rise. Goldman also expects the company to reach 20% operating margins by 2029.
That call followed a May 29, 2026 note from Citi analyst Tyler Radke, who lowered the firm’s price target on Braze, Inc. (NASDAQ:BRZE) to $48 from $49 while keeping a “Buy” rating, calling the earnings report solid.
The commentary came after fiscal first-quarter 2027 results, in which Braze, Inc. (NASDAQ:BRZE) reported revenue of $211.0 million, up 30.2% year-over-year, marking its fourth straight quarter of organic revenue acceleration. CEO Bill Magnuson credited demand for the company’s AI tools, including BrazeAI Operator and BrazeAI Agent Console. Non-GAAP operating income was $10.5 million, up from $2.8 million a year earlier, and total customers grew to 2,713 from 2,342. For fiscal 2027, Braze guided for revenue of $895.0 million to $899.0 million.’
Braze, Inc. (NASDAQ:BRZE) facilitates communication between brands and consumers worldwide through its customer engagement platform. Some of its services include data ingestion, online notifications, and interstitial messages. The company also helps brands sync and transform consumer data in a structured way.
2. Bentley Systems, Incorporated (NASDAQ:BSY)
Upside Potential: 42.26%
Number of Hedge Fund Holders: 38
Bentley Systems, Incorporated (NASDAQ:BSY), which offers strong upside potential, ranks among the overlooked tech stocks to invest in now. Fresh bullish coverage is framing the infrastructure software maker as a rare defensive play against mounting AI competition.
On June 18, 2026, BNP Paribas analyst Andrew DeGasperi initiated coverage of Bentley Systems, Incorporated (NASDAQ:BSY) with an “Outperform” rating and a $40 price target. DeGasperi told investors the company’s defensibility in comparison to frontier AI models is strong, pointing to low software penetration in Bentley’s core markets of civil infrastructure, energy exploration, and resource mining, along with limited competition in those areas.
That view was echoed by BofA, which reinstated coverage of Bentley Systems, Incorporated (NASDAQ:BSY) at “Buy” with a $40 price target, up from a previous “Neutral” rating. The firm described Bentley as a defensive play against AI, saying its premium valuation is supported by structural barriers including embedded compliance, deterministic workflows, and regulatory requirements.
Bentley Systems, Incorporated (NASDAQ:BSY) is down nearly 20% so far in 2026, while about 80% of covering analysts remain bullish.
Bentley Systems, Incorporated (NASDAQ:BSY) develops infrastructure engineering software. The company provides integrated software solutions used across professional disciplines, infrastructure sectors, geographies, and different stages of the infrastructure lifecycle.
1. Tyler Technologies, Inc. (NYSE:TYL)
Upside Potential: 43.37%
Number of Hedge Fund Holders: 42
Tyler Technologies, Inc. (NYSE:TYL), which offers strong upside potential, ranks among the overlooked tech stocks to invest in now. A statewide AI rollout in South Carolina is backing the company’s push into government-facing conversational technology with early usage metrics.
On June 30, 2026, Tyler Technologies, Inc. (NYSE:TYL) successfully launched its Resident AI Assistant, named “Bradley,” in South Carolina, giving residents a centralized conversational gateway to state government services. The assistant sources answers directly from verified .gov websites across state agencies. Nathan Hogue, state chief information officer for the South Carolina Department of Administration, said Tyler Technologies, Inc. (NYSE:TYL)’s Bradley gives the state’s more than five million residents “a single, trusted starting point” for information ranging from DMV guidance to court resources and tax assistance, freeing staff to focus on more complex service needs.
Since launching in September 2025, Bradley has answered more than 38,000 questions from over 10,800 unique users, averaging 195 questions resolved per day and peaking at 426 in a single day. The assistant has achieved an 82.2% first-contact resolution rate, operates 24/7 with 15% of interactions occurring on weekends, and supports 54 languages, with about 6% of interactions in non-English languages.
Liz Thomas, president of Tyler’s State & Federal Group, said the Resident AI Assistant for Tyler Technologies, Inc. (NYSE:TYL) was built specifically for government use, with safeguards, transparency and analytics that go beyond a traditional chatbot, helping South Carolina deliver a more responsive and accessible government experience.
Tyler Technologies, Inc. (NYSE:TYL) offers integrated software and technology management solutions for the public sector.
While we acknowledge the potential of TYL 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 TYL and that has 100x upside potential, check out our report about the cheapest AI stock.
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