In this article, we will discuss 8 Best Rising Tech Stocks to Buy According to Hedge Funds.
Tech stocks remain one of the most heavily debated investments on Wall Street, but many of the world’s most famous billionaires and hedge fund managers still believe the sector could dominate global markets for years as artificial intelligence, cloud computing, semiconductors, and automation reshape the economy.
Few investors have benefited more from technology than Stanley Druckenmiller, who has aggressively invested in AI-linked companies, arguing that the world is entering a massive multi-year technology infrastructure cycle driven by data centers, semiconductors, and enterprise AI adoption. Similarly, Ken Griffin believes AI and advanced computing will transform productivity across industries, even though he warns investors not to blindly chase hype-driven valuations. Legendary investor Warren Buffett famously avoided technology stocks for years before building massive positions in Apple, recognizing the extraordinary consumer loyalty and cash-generation power of dominant tech platforms. Investors like Cathie Wood continue to argue that disruptive technologies, including AI, robotics, genomics, and automation, could generate trillions of dollars in future economic value.
Recent studies strongly support the long-term bullish case for technology stocks. Research from Stanford Institute for Human-Centered Artificial Intelligence found that private global investment in AI reached record levels as enterprise adoption accelerated rapidly across industries. Meanwhile, research from McKinsey & Company estimates that generative AI alone could contribute up to $4.4 trillion annually to the global economy through productivity gains and operational efficiencies.
Still, billionaire investors consistently warn that not every tech company will survive. Many hedge fund managers believe the biggest winners will be firms with strong balance sheets, real earnings growth, durable competitive moats, and leadership positions in critical technologies. For investors willing to navigate volatility, tech stocks continue to represent one of the market’s most powerful long-term growth opportunities.
With this context in mind, here are the best rising tech stocks to buy according to hedge funds.
Our Methodology
We used stock screeners to identify a list of tech stocks with one-month returns of over 100% as of May 16, 2026. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in ascending order of their one-month returns.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8 Best Rising Tech Stocks to Buy According to Hedge Funds
8. Boost Run, Inc. (NASDAQ:BRUN)
One-month Return: 116.85%
Number of Hedge Fund Holders: N/A
On May 13, DA Davidson raised its price target on Boost Run, Inc. (NASDAQ:BRUN) to $25 from $20 while reiterating a Buy rating on the shares. The firm cited the company’s continued commercial momentum, expanding deployment capacity, and operational execution as key drivers behind its bullish outlook. According to the analyst, Boost Run currently holds approximately $940 million in long-term contracted revenue and is expected to exit fiscal year 2026 with more than $375 million in Annualized Recurring Revenue. DA Davidson also identified the company’s ongoing capacity expansion initiatives as a major catalyst for future share appreciation, particularly as demand for AI infrastructure and inference computing continues to accelerate globally.
A day earlier, Craig-Hallum initiated coverage of Boost Run, Inc. with a Buy rating and a $30 price target. The firm stated that following the company’s successful de-SPAC transaction, investors now have an attractive opportunity to gain exposure to the rapidly expanding AI compute market. Craig-Hallum highlighted several differentiators supporting its thesis, including Boost Run’s Exemplar Cloud designation, a reported $1.4 billion OEM relationship with Dell Technologies, and access to 125 megawatts of data center capacity. The analyst also argued that the company’s valuation remains discounted relative to AI infrastructure peers such as Nebius Group and CoreWeave despite what the firm believes is substantial growth potential heading into 2026.
Founded in 2023 and headquartered in Northbrook, Boost Run, Inc. provides enterprise-grade AI cloud infrastructure solutions, including on-demand bare-metal GPU compute, CPU nodes, and managed Kubernetes services for high-performance computing workloads. The company focuses on delivering scalable infrastructure solutions tailored to the growing computational requirements of artificial intelligence applications and enterprise AI deployments.
7. POET Technologies Inc. (NASDAQ:POET)
One-month Return: 117.57%
Number of Hedge Fund Holders: 6
On May 15, POET Technologies Inc. (NASDAQ:POET) announced that it entered into a definitive agreement with a single institutional investor to issue and sell 19,047,620 common shares along with warrants exercisable for an equal number of shares in a non-brokered registered direct offering. The combined purchase price for each common share and accompanying warrant was set at $21.00, generating aggregate gross proceeds of approximately $400 million. The warrants carry an exercise price of $26.15 per share and remain exercisable for three years following issuance. Management indicated that the financing is expected to close on or about May 18, 2026, and the sizable capital raise significantly enhances the company’s financial flexibility as it expands its photonics and AI infrastructure initiatives.
The same day, POET Technologies Inc. and Lumilens announced a strategic supply agreement and joint development partnership focused on advancing wafer-level photonic integration technologies for frontier AI infrastructure applications. Under the commercial framework, Lumilens placed an initial purchase order valued at $50 million for the manufacturing of EOI-based optical engines. The companies also noted that the broader supplier relationship could potentially scale beyond $500 million in cumulative purchases over the next five years. The agreement is intended to accelerate the development of next-generation optical connectivity solutions for hyperscale data centers and AI systems requiring increasingly sophisticated photonic integration capabilities.
Founded in 1985 and headquartered in Toronto, POET Technologies Inc. designs, develops, and manufactures high-speed optical engines, light sources, and Photonic Integrated Circuits for hyperscale data centers and artificial intelligence infrastructure markets. The company focuses on delivering advanced photonics technologies designed to improve speed, efficiency, and scalability in AI-driven networking environments.
6. Ambiq Micro, Inc. (NYSE:AMBQ)
One-month Return: 118.62%
Number of Hedge Fund Holders: 15
On May 13, Northland raised its price target on Ambiq Micro, Inc. (NYSE:AMBQ) to $72 from $44 while maintaining an Outperform rating following the company’s earnings-per-share beat driven by stronger-than-expected revenue performance. According to the analyst, demand for Ambiq’s ultra-low-power semiconductor products remains robust across wearable technology markets and several additional end-market categories. Northland further stated that AI-enabled wearable devices are still “in the first inning of growth,” suggesting that the company may benefit from a prolonged expansion cycle as artificial intelligence functionality becomes increasingly integrated into battery-powered consumer devices.
On the same day, UBS raised its price target on Ambiq Micro, Inc. to $70 from $43 while maintaining a Neutral rating on the shares. UBS noted that growth inflection points associated with the company’s Atomiq platform are still ahead, implying that additional operational acceleration may materialize as adoption expands. The revised target reflects growing recognition among analysts that Ambiq’s low-power processing technologies are positioned favorably within the evolving edge AI market, particularly as wearable devices and intelligent connected systems continue to require more energy-efficient semiconductor architectures.
Founded in January 2010 and headquartered in Austin, Ambiq Micro, Inc. is a fabless semiconductor company specializing in ultra-low-power microcontrollers and systems-on-chip designed for edge artificial intelligence applications. Its proprietary SPOT technology enables AI processing capabilities on battery-powered devices while minimizing power consumption for wearables, healthcare devices, and connected consumer electronics.
5. Innodata Inc. (NASDAQ:INOD)
One-month Return: 121.33%
Number of Hedge Fund Holders: 23
On May 14, Wedbush raised its price target on Innodata Inc. (NASDAQ:INOD) to $100 from $80 while maintaining an Outperform rating on the shares. The firm stated that the higher target reflects increased confidence in the company’s long-term growth runway following what it described as “monster” first-quarter results and an improved outlook. Wedbush reiterated its view that Innodata is positioned to emerge as a major beneficiary of accelerating artificial intelligence adoption trends, citing the company’s expanding role in supporting enterprise AI initiatives and data infrastructure development.
Earlier, on May 8, Wedbush increased its price target on Innodata Inc. to $80 from $75 while also reiterating an Outperform rating. According to the firm, the company delivered exceptionally strong first-quarter results featuring substantial beats across key financial metrics while raising fiscal 2026 revenue growth guidance to more than 40% year over year. Wedbush noted that the performance demonstrates Innodata’s ability to capitalize on growing demand for AI-related data solutions and highlighted the company’s continued inclusion on the IVES AI 30 list as additional validation of its strategic positioning within the AI ecosystem.
Founded in 1988 and headquartered in Ridgefield Park, Innodata Inc. is a global data engineering company that develops foundational data and software platforms used to build, train, and deploy artificial intelligence solutions. The company supports enterprise AI adoption through services and technologies designed to improve data quality, scalability, and operational efficiency.
4. Bandwidth Inc. (NASDAQ:BAND)
One-month Return: 164.30%
Number of Hedge Fund Holders: 15
On May 15, Citizens raised its price target on Bandwidth Inc. (NASDAQ:BAND) to $70 from $45 while maintaining an Outperform rating on the shares. According to the firm, management delivered a notably optimistic assessment of current business trends, with investor attention centered on the company’s exclusive partnership with Salesforce, expanding monetization opportunities tied to voice artificial intelligence, and rapidly growing software services’ annual recurring revenue. Citizens also highlighted Bandwidth’s differentiated position relative to Twilio within enterprise voice infrastructure, arguing that the company’s owned-network model and strategic positioning continue to support a favorable long-term growth outlook despite the stock’s substantial year-to-date appreciation.
The previous day, Needham analyst Joshua Reilly raised the firm’s price target on Bandwidth Inc. to $60 from $45 while reiterating a Buy rating following discussions with CEO David Morken and CFO Daryl Raiford at the Needham Technology & Media Conference. Key topics included the significant competitive advantages associated with the company’s owned communications network, the emerging Agentforce contact center opportunity, and the potential for second-half volume growth to exceed current guidance expectations. Needham also pointed to voice AI as a potentially major long-term growth driver capable of accelerating enterprise adoption and expanding revenue opportunities across Bandwidth’s communications platform.
Founded in 1999 and headquartered in Raleigh, Bandwidth Inc. is a cloud communications software company that provides APIs and infrastructure enabling developers and enterprises to integrate voice calling, messaging services, and emergency communications directly into applications and digital platforms. The company’s infrastructure-centric approach allows enterprises to build scalable communications solutions while maintaining greater operational control and reliability.
3. Trio-Tech International (NYSEAMERICAN:TRT)
One-month Return: 185.21%
Number of Hedge Fund Holders: 1
On May 14, Trio-Tech International (NYSEAMERICAN:TRT) stated that it expects increasing demand for its semiconductor back-end testing services, driven by customer programs involving advanced CPU and GPU computing applications as well as electric vehicle semiconductor technologies. In response to rising demand from North American and European semiconductor customers, the company announced the execution of a lease for an additional 104,000 square feet in Perai, Penang, Malaysia, significantly expanding its testing capacity for AI-related semiconductor services across Southeast Asia. Management also indicated that the company expects stronger contributions from its Industrial Electronics segment, supported by growing demand across industrial, aerospace, and commercial applications. The company reiterated its commitment to operational efficiency, disciplined capital allocation, and maintaining strong liquidity to support long-term profitability and expansion initiatives.
On the same day, Trio-Tech International reported third-quarter revenue of $16.5 million compared to $7.4 million in the prior-year period, reflecting substantial year-over-year growth. CEO S.W. Yong stated that the company benefited from sustained demand within its Semiconductor Back-End Solutions segment, particularly from customers developing advanced AI computing and EV automotive chips requiring high reliability and performance validation. Management also disclosed that after previously announcing approximately $5.3 million in orders for high-performance Burn-In Boards supporting next-generation AI GPU platforms, the company subsequently secured an additional $2.5 million in related orders. The company believes its expanding regional footprint, strengthened balance sheet, and growing semiconductor testing activity position it favorably for continued participation in high-growth AI and EV markets.
Founded in 1958 and headquartered in Van Nuys, Trio-Tech International provides semiconductor testing services, equipment manufacturing, and distribution solutions for semiconductor and industrial electronics markets. While maintaining corporate headquarters in California, the company also operates principal executive and regional headquarters in Singapore, supporting its extensive Asian semiconductor operations.
2. MaxLinear, Inc. (NASDAQ:MXL)
One-month Return: 295.46%
Number of Hedge Fund Holders: 26
On May 14, MaxLinear, Inc. (NASDAQ:MXL) announced the availability of its Trinity platform based on the URX processor family, designed to deliver carrier-grade bidirectional wireless backhaul speeds of up to 10Gbps. The company stated that the Trinity platform combines the URX850 system-on-chip with a cloud-native API framework that integrates directly with MaxLinear’s millimeter-wave and microwave modem technologies. According to management, the platform is specifically engineered to support next-generation intelligent networks through cloud-managed and AI-optimized backhaul infrastructure, enabling telecommunications operators to expand 5G coverage while reducing deployment and operational expenses through automation and real-time network intelligence. The company added that OEM products utilizing the Trinity platform are expected to launch during the first half of 2027.
Earlier, on May 12, Benchmark initiated coverage of MaxLinear, Inc. with a Buy rating and a $28 price target. The initiation reflects growing optimism surrounding the company’s ability to capitalize on increasing demand for advanced connectivity infrastructure tied to 5G deployments, AI data center interconnects, and next-generation wireless networking applications. Analysts continue to view MaxLinear’s portfolio of high-performance connectivity semiconductors as strategically positioned to address rising bandwidth requirements across enterprise, telecommunications, and cloud infrastructure markets.
Founded in 2003 and headquartered in Carlsbad, MaxLinear, Inc. is a fabless semiconductor company specializing in high-performance radio-frequency, analog, and mixed-signal systems-on-chip technologies. Its products support multi-gigabit connectivity across smart homes, 5G and 6G wireless infrastructure, AI data center optical interconnects, and industrial networking applications.
1. Rackspace Technology, Inc. (NASDAQ:RXT)
One-month Return: 337.59%
Number of Hedge Fund Holders: 8
On May 12, BMO Capital raised its price target on Rackspace Technology, Inc. (NASDAQ:RXT) to $5 from $2 while maintaining a Market Perform rating following the company’s first-quarter results. According to the analyst, one of the most significant developments during the quarter was Rackspace’s memorandum of understanding with Advanced Micro Devices focused on integrating AMD CPUs and GPUs into governed AI infrastructure solutions. BMO noted that the quarter reinforced its view that Rackspace is pursuing a strategic approach centered on partnerships with leading AI ecosystem companies such as Palantir Technologies and AMD in order to strengthen its positioning for regulated and enterprise AI workloads.
Previously, on May 7, Rackspace Technology, Inc. and Advanced Micro Devices announced a multiyear strategic partnership framework designed to create an Enterprise AI Cloud tailored for regulated enterprises and sovereign workloads. Under the agreement, AMD Instinct GPUs and EPYC CPUs are expected to be integrated into a fully managed and governed enterprise AI stack operated by Rackspace. The companies stated that the partnership aims to create a new category of managed enterprise AI infrastructure by combining dedicated AMD compute resources with Rackspace’s managed operational model. The initiative is intended to deliver a fully integrated AI infrastructure platform spanning bare-metal compute, inference tooling, governed runtime environments, and enterprise-grade service-level agreements calibrated to sovereignty, security, and compliance requirements.
Founded in 1998 and headquartered in San Antonio, Rackspace Technology, Inc. is a global provider of multi-cloud, hybrid-cloud, and enterprise AI infrastructure solutions. The company specializes in IT consulting, cloud migration, cybersecurity, and managing enterprise workloads across major cloud and infrastructure platforms.
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