In this article, we will look at the 7 Undervalued Technology Penny Stocks to Buy Now.

Technology stocks dominated the US equity markets in 2025, noted Max McKechnie, Global Market Strategist at JPMorgan Asset Management. According to McKechnie, the standout subsectors were communications services, which returned 33%, and information technology, which returned 23.6%. In comparison, the broader market managed a little over 17%. It was also the year that a group of seven high-performing tech stocks, the Magnificent 7, led much of the growth.

But if 2025 was the year of the Magnificent 7, 2026 will favor the underdogs. This is the position taken by strategists at several firms, including Polar Capital America Corp. Polar Capital’s Dan Boston told Bloomberg that smaller companies “are a good place to be generally, and globally, in part because they’ve been overlooked for a long period of time.” He added: “What we see going forward is small caps doing well vis-a-vis large caps.” And according to Jonathan Krinsky, managing director at BTIG, small companies outperforming the giants, especially the Magnificent 7, “will be a theme to watch in 2026.”

Miles Lewis, portfolio manager at Royce Investment Partners, believes that the next phase of the AI revolution will power the “regime shift” from the tech giants to the underdogs. Lewis predicted that 2026 will see a departure from speculative plays toward “quality value” in the small-cap space.

Similarly, Dan Ives of Wedbush Securities has framed 2026 as the year of “AI monetization.” And, Ives is of the opinion that as the focus moves from building expensive infrastructure to using it, nimble micro-cap companies are uniquely positioned to capture growth in the “application layer” without the bloated valuations of their trillion-dollar counterparts. In other words, the easy money in mega-caps may have been made, but the catch-up trade in penny stocks is just beginning.

With this backdrop in mind, this article highlights seven undervalued technology penny stocks that stand out today.

Our Methodology

We screened for undervalued technology penny stocks using Finviz, defining a penny stock as a company trading below $5 per share. Then, we filtered for tech companies that have a forward price-to-earnings (P/E) ratio below 15 and received bullish analyst ratings. Finally, we selected the seven most popular stocks among elite hedge funds (as of Q3 2025). The list is organized in ascending order by the number of hedge funds having stakes in each stock.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

Note: The forward P/E and stock price data are as of January 20, 2026.

Undervalued Technology Penny Stocks to Buy Now

7. Creative Realities, Inc. (NASDAQ:CREX)

Number of Hedge Fund Holders: 3

Forward P/E: 12.61

Stock Price: $3.34

Creative Realities, Inc. (NASDAQ:CREX) is one of the undervalued technology penny stocks to buy now. On January 7, 2026, Creative Realities Inc. (NASDAQ:CREX) introduced Digital Drive-Thru 2.0, a modular digital menu board system designed to simplify installation, reduce maintenance, and allow operators to scale from single to multi-screen setups without replacing existing structures.

Built with input from franchisees and operators, the lightweight design eliminates the need for heavy equipment, while features like adaptive canopy lighting, adjustable clearance bars, and customizable intercom placement improve usability and compliance. Early pilots have received positive feedback, and the company plans a broader rollout through 2026, with a full showcase at NRF 2026.

Previously, on January 2, Creative Realities, Inc. (NASDAQ:CREX) officially appointed Michael Bosco to its Board of Directors. The decision was made after shareholders approved it on December 29, and Bosco’s tenure became effective on December 30.

Meanwhile, on December 19, Creative Realities filed a registration statement with the US Securities and Exchange Commission (SEC) for a secondary offering of up to 12,979,579 shares of its common stock. The company itself will not issue new shares or receive any proceeds from the sale of these shares. Instead, the offering is being conducted solely by existing selling stockholders who will receive all of the proceeds. The selling stockholders are the former holders of the company’s Series A-1 and Series A-2 Convertible Preferred Stock, who converted their preferred shares into common stock following shareholder approval of the transaction.

Creative Realities, Inc. (NASDAQ:CREX) is a digital marketing technology company. It designs, develops, and installs digital signage systems, interactive displays, and content management platforms used in retail, hospitality, healthcare, and entertainment venues.

​6. LG Display Co., Ltd. (NYSE:LPL)

Number of Hedge Fund Holders: 11

Forward P/E: 5.51

Stock Price: $4.23

LG Display Co., Ltd. (NYSE:LPL) is one of the undervalued technology penny stocks to buy now. At CES 2026, which opened on January 8, LG Display Co., Ltd. (NYSE:LPL) showcased its vision with the theme “Display for AI, Technology for All,” presenting a wide range of OLED solutions across TVs, gaming, and automotive displays. The underlying theme for CES was “Innovators show up,” highlighting how AI is moving from concept to practical application in everyday life. Aligned with that theme, visitors experienced firsthand how LG Display’s innovations are designed to deliver clearer visuals and more immersive experiences tailored for the AI era.

A major highlight was the debut of Tandem WOLED, which uses advanced RGB stacking technology to achieve up to 4,500 nits of brightness and ultra-low reflectance for sharper contrast and vivid colors. Alongside this, LG Display introduced its latest Gaming OLED lineup, including a 27-inch UHD model with the world’s first 240Hz RGB stripe pixel structure and a 39-inch 5K2K OLED, demonstrating how refresh rates and resolution can transform immersion across genres.

In the automotive space, LG Display unveiled award-winning solutions like Smart Dual View and Embedded Camera Display, as well as large-format innovations such as Pillar-to-Pillar and Slidable OLED panels. These displays, designed for the evolving Software-Defined Vehicle environment, offered visitors a glimpse into personalized, adaptive in-car experiences. With strong interest from attendees, LG Display reinforced its leadership in OLED technology and signaled its intent to push display innovation further in the AI-driven future.

LG Display Co., Ltd. (NYSE:LPL) is a South Korean manufacturer specializing in thin-film transistor liquid crystal display (TFT-LCD), OLED, and flexible display technologies. The company supplies panels for televisions, laptops, smartphones, and automotive displays.