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.
Source: pixabay
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.
5. Rimini Street, Inc. (NASDAQ:RMNI)
Number of Hedge Fund Holders: 15
Forward P/E: 10.94
Stock Price: $3.71
Rimini Street, Inc. (NASDAQ:RMNI) is one of the undervalued technology penny stocks to buy now. On January 6, Rimini Street, Inc. (NASDAQ:RMNI) announced that SP Electricity North West has resolved long‑standing SAP system challenges by switching to Rimini Support and implementing its single sign-on solution.
The UK energy provider, serving over 5 million customers, cut overhead costs worth hundreds of thousands of pounds and eliminated password reset issues that once consumed 10% of its service desk’s time. With savings of 50% on annual maintenance fees and improved system reliability, SP ENW now considers Rimini Street a critical partner in its SAP roadmap, confident in building a stable and flexible future beyond 2030.
On December 11, 2025, Rimini Street, Inc. expanded its global partnership with Tidewater, the world’s top operator of offshore support vessels. According to Rimini, the expanded relationship will deliver comprehensive ERP solutions to support Tidewater’s growth in energy exploration and production.
The collaboration began with Rimini providing expert support for Tidewater’s Oracle PeopleSoft ERP system in Brazil. Initially, the goal was to ensure that Tidewater’s activities were compliant and that operational stability was maintained. This objective was achieved, and as a result, Rimini has now extended its services to include support for Tidewater’s SAP systems. It will also help Tidewater implement new tax software, facilitating the consolidation of regional financial operations into a single global platform.
Meanwhile, on December 5, TD Cowen analyst Derrick Wood reaffirmed a Hold rating on Rimini Street with a $5 price target, citing a mix of positives and challenges. While the company’s long-term guidance looks strong, with FY26 revenue and margin projections exceeding prior estimates, near-term Q4 expectations fell short. Strategic moves like launching Agentic AI ERP and expanding channel alliances show promise but will take time to deliver. Although the litigation overhang has been removed, execution remains key—leading Wood to maintain a cautious stance.
Rimini Street, Inc. (NASDAQ:RMNI) provides enterprise software support and managed services, specializing in Oracle, SAP, VMware, and other mission-critical applications. The company’s offerings include Rimini ONE, Rimini Connect, Rimini Consult, and Rimini Support.
4. Unisys Corporation (NYSE:UIS)
Number of Hedge Fund Holders: 21
Forward P/E: 9.82
Stock Price: $3.03
Unisys Corporation (NYSE:UIS) is one of the undervalued technology penny stocks to buy now. On December 10, Jefferies lowered its price target on Unisys Corporation (NYSE:UIS) to $3 from $4 and left its Hold rating unchanged. The analysts cited a disappointing quarter for Unisys, which led them to reduce their 2025 constant-currency revenue growth estimate by 370 basis points to -3.4%.
Jefferies believes some of Unisys’s current challenges are temporary. The analysts noted that Unisys’s management is committed to sticking to its long-term framework, which they see as a bright spot. However, Jefferies has concerns about near-term revenue visibility extending into 2026. And despite Unisys’s valuation appearing attractive, Jefferies believes the lack of a clear revenue trajectory will likely keep the stock “somewhat range-bound” in the coming periods.
Separately, William Blair initiated coverage on Unisys with an Outperform rating on December 10. The firm predicted strong growth for Unisys, citing the company’s stable revenue stream and future growth visibility. Some of the factors William Blair believes will drive Unisys’s growth include the company’s securing large, multi-year contracts in key sectors. Also, Unisys is focusing on cloud computing, digital transformation, and cybersecurity, and it has improved profitability and efficiency through cost-cutting measures.
Unisys Corporation (NYSE:UIS) is a global IT solutions company. It delivers digital workplace services, cloud and infrastructure modernization, enterprise computing, and cybersecurity solutions.
3. Sabre Corporation (NASDAQ:SABR)
Number of Hedge Fund Holders: 22
Forward P/E: 7.53
Stock Price: $1.28
Sabre Corporation (NASDAQ:SABR) is one of the undervalued technology penny stocks to buy now. Sabre Corporation (NASDAQ:SABR) and Biztrip AI announced a strategic partnership on January 14 to develop AI-powered corporate travel assistants that streamline booking workflows and itinerary management.
The collaboration combines Sabre’s agentic APIs, Model Context Protocol server, and SabreMosaic Travel Marketplace with Biztrip AI’s Travel LLM and multi-agent architecture, while Sabre also made a minority investment in Biztrip AI. The partnership targets travel management companies, airlines, hotels, and corporate clients, leveraging Sabre’s cloud platform and connectivity to 50,000 TMCs. Biztrip AI’s system learns from booking patterns, policies, and traveler preferences, offering specialized agents for planning, trip support, expense management, and analytics.
On January 7, Bernstein’s Alex Irving reaffirmed a Buy rating on Sabre Corporation (NASDAQ:SABR) with a $3.00 price target.
Earlier on December 22, Sabre Corporation announced the results and expiration of its subsidiary’s exchange offers for certain senior secured debt. For context, the company launched exchange offers on November 20, 2025, through its subsidiary Sabre GLBL Inc. The goal was to extend the maturity of certain senior secured notes from 2027 and 2029 to 2030.
Sabre’s debt exchange offers closed on December 19, 2025, resulting in the issuance of new 10.750% Senior Secured Notes due 2030. The company accepted $240.2 million of its 8.625% notes due 2027, $44.3 million of its 11.250% notes due 2027, and capped acceptance of its 10.750% notes due 2029 at $379 million despite $676.5 million tendered. In total, $663.4 million in principal was exchanged, with most settled early on December 8 and the remainder finalized on December 23.
Sabre Corporation (NASDAQ:SABR) provides software and technology solutions for the travel industry. Its platform connects airlines, hotels, travel agencies, and corporate buyers, supporting reservations, pricing, and operational management.
2. Commerce.com, Inc. (NASDAQ:CMRC)
Number of Hedge Fund Holders: 22
Forward P/E: 9.99
Stock Price: $3.39
Commerce.com, Inc. (NASDAQ:CMRC) is one of the undervalued technology penny stocks to buy now. On January 11, Commerce.com, Inc. (NASDAQ:CMRC) endorsed Google’s Universal Commerce Protocol (UCP), an open-source standard designed to unify how agents and systems interact across the shopping journey.
The move builds on Commerce.com’s partnership with Google and leverages its Feedonomics-powered data enrichment to help merchants streamline product feeds, improve visibility, and enable direct checkout within Google’s AI-driven experiences, such as Search and Gemini. By aligning on UCP, Commerce aims to give retailers a frictionless way to reach customers, retain ownership of transactions, and future‑proof their businesses as commerce shifts toward conversational, agent‑driven shopping.
On December 18, BigCommerce, part of Commerce.com, Inc., integrated Stripe’s newly launched Agentic Commerce Suite, giving merchants a simple way to connect product catalogs to multiple AI shopping agents. The suite streamlines product discovery and secure checkouts—including taxes, shipping, and order processing—without requiring custom setups, allowing businesses to adopt AI-driven commerce while keeping their existing systems intact.
In a different update, on December 15, Commerce.com announced that EuroOptic achieved significant growth in key performance metrics following the launch of its new composable e-commerce platform. EuroOptic is a component of Commerce.com and is a specialist retailer of high-end optics and precision sporting gear.
According to Commerce.com, within the first two quarters of launching on the BigCommerce platform, EuroOptic reported substantial increases in total revenue, web traffic, and order volume. And beyond raw growth, the company saw notable improvements in conversion rates and reliability across both its B2C and B2B segments.
Commerce.com sports a consensus “Hold” rating from six analysts. Their 12‑month price targets average $7.33, ranging from $5.00 to $11.00, implying a 71.7% upside from the current level of $4.27.
Commerce.com, Inc. (NASDAQ:CMRC) operates a software-as-a-service e-commerce platform that enables brands and retailers to launch and scale online stores. Its services include store design, catalog management, hosting, checkout, order management, reporting, and integrations with third-party providers.
1. Clarivate Plc (NYSE:CLVT)
Number of Hedge Fund Holders: 25
Forward P/E: 4.84
Stock Price: $2.92
Clarivate Plc (NYSE:CLVT) is one of the undervalued technology penny stocks to buy now. On January 8, Goldman Sachs downgraded Clarivate Plc (NYSE:CLVT) from Buy to Neutral and cut its 12‑month price target to $3.60 from $4.20. The firm pointed to concerns about Clarivate’s Value Creation Plan, which includes shifting from transactional sales to subscription-based sales, upgrading sales talent, and streamlining its portfolio. Goldman noted that while these initiatives are strategic, they will take time to deliver results, leaving organic revenue growth flat in 2025 amid business changes and market pressures.
The bank also flagged rising competition from AI‑native players and limited pricing power as headwinds for Clarivate’s near‑term performance. Although Clarivate maintains strong EBITDA margins in the low‑40s, well above peers, Goldman sees limited upside for the stock over the next year, citing execution risks and the slow pace of organic growth recovery. Expansion in margins is expected to resume in 2026, but patience will be required.
Separately, Clarivate released its Drugs to Watch 2026 report on January 6, spotlighting eleven therapies with significant clinical and commercial potential across oncology, immunology, metabolic disease, rare conditions, and neurology. The report underscores how innovation, AI insights, and global market trends—particularly in China—are shaping the next wave of blockbuster treatments.
Earlier, on December 18, Clarivate Plc revealed that Nissan Motor selected IPfolio to better manage and safeguard its IP assets. IPfolio is Clarivate’s cloud-based intellectual property (IP) management software. According to Clarivate, IPfolio will allow Nissan to create a flexible system for the long term. This includes tailored workflows for daily tasks, improved data access, and connections to other systems via APIs. The goal is to modernize and integrate Nissan’s IP handling.
Clarivate Plc (NYSE:CLVT) provides data, analytics, and workflow solutions for scientific research, intellectual property, and life sciences. Its platforms include Web of Science for academic research, Derwent for patent intelligence, and Cortellis for drug development insights.
While we acknowledge the potential of Clarivate Plc (NYSE:CLVT) as an investment, 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 CLVT and that has 100x upside potential, check out our report about this cheapest AI stock.
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