In this piece, we will discuss the 8 Overlooked Tech Stocks to Invest In Now.
Technology stocks are back in focus for investors, even as questions about valuations and AI spending continue to linger around the sector.
Reuters reported on July 3, 2026, that U.S. equity funds saw fresh buying in the week ending July 1, 2026, as cooling U.S.-Iran tensions and renewed appetite for technology names helped lift investor sentiment, though wariness ahead of a closely watched payrolls report kept purchases in check.
Net inflows into U.S. equity funds came in at $1.03 billion, partially offsetting $3.47 billion in outflows the week before, per LSEG Lipper data. A weaker than anticipated June jobs report, which showed the economy adding only 57,000 positions, tempered expectations of a Federal Reserve rate hike before year-end.
Technology funds pulled in $3.42 billion as sentiment recovered following $19.97 billion in net sales the previous week, while financial and healthcare funds saw inflows of $1.96 billion and $1.47 billion, respectively. Large-cap funds gathered $7.2 billion, even as small-cap, mid-cap and equity income funds saw money move out, losing $694 million, $2.1 billion, and $1.33 billion in outflows.
That said, fears of a possible tech bubble have not eased. Reuters reported on June 30, 2026, that BofA’s Bubble Risk Indicator sat at 0.91 for semiconductors and 0.82 for the broader technology sector, while the Buffett Indicator held at 218%, just under its record high.
With that background in mind, let’s jump to our list of the overlooked tech stocks to invest in now.
Our Methodology
To curate our list of overlooked tech stocks to invest in, we ran a screener to identify technology stocks with a market capitalization of over $2 billion and upside potential of at least 20%. Next, we considered hedge fund ownership of these stocks, selecting those with relatively fewer hedge fund holders than industry peers, indicating they are under-the-radar. For hedge fund data, we relied on Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds as of Q1 2026. Our list is presented in ascending order based on the upside potential of each stock.
Note: All data sourced on July 2, 2026.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
8. Navan, Inc. (NASDAQ:NAVN)
Upside Potential: 23.71%
Number of Hedge Fund Holders: 30
With strong upside potential, Navan, Inc. (NASDAQ:NAVN) ranks among the overlooked tech stocks to invest in now. A new AI integration tool follows a blowout quarter that sent shares surging and pushed management to raise its full-year outlook.
On July 2, 2026, Navan, Inc. launched its Model Context Protocol, allowing customers to connect Navan to their existing AI tools and query travel and expense data using natural language. The initial deployment offers read-only access to program insights and transaction data through interfaces like Claude, ChatGPT and Cursor, with write-access features such as expense approvals and policy updates planned for later. SVP Dane Molter said the tool builds on more than a decade of Navan’s data and represents an important step toward embedding the platform into everyday workflows.
That launch followed a stronger-than-expected first quarter.
On June 10, 2026, Navan, Inc. raised its full-year revenue and operating income forecasts, citing strong business travel demand and enterprise growth, sending shares up 19% in extended trading. Gross booking volume jumped 50% to $3.1 billion, and first-quarter revenue grew about 40% to $220.2 million, beating estimates of $205.3 million. The company posted an adjusted profit of 8 cents per share, versus analysts’ forecast of a 1-cent-per-share loss. CFO Aurélien Nolf said enterprise customers remain “very focused on in-person interactions between their teams and their customers.” Navan now expects fiscal 2027 revenue of $907 million to $913 million and adjusted operating profit of $76 million to $80 million.
Navan, Inc. operates an AI-powered software platform for travel and expense management.
7. SailPoint, Inc. (NASDAQ:SAIL)
Upside Potential: 24.10%
Number of Hedge Fund Holders: 25
SailPoint, Inc. (NASDAQ:SAIL), which offers strong upside potential, ranks among the overlooked tech stocks to invest in now. A completed acquisition aimed at securing AI agents and machine identities follows a series of bullish analyst calls out of the company’s recent investor day.
On June 29, 2026, SailPoint, Inc. announced it completed its acquisition of Tel Aviv-based Entro Security, a specialist in non-human identity and credentials security. Entro’s solutions are now available to SailPoint customers as standalone offerings, with native platform integration continuing. CEO Mark McClain said the deal closes what he called the AI governance gap, giving organizations a unified control plane to govern human, machine and AI agent identities. The acquisition complements the company’s recently launched SailPoint Agentic Fabric, which discovers and secures autonomous AI agents and machine identities, while Entro adds the ability to secure more than 1,200 types of secrets, tokens and certificates within developer environments.
That news followed SailPoint, Inc.’s June 17, 2026 investor day, after which TD Cowen analyst Shaul Eyal reiterated a “Buy” rating with a $19 price target, citing a fiscal 2029 annual recurring revenue target of $2.1 billion that TD said sits 9% above consensus. The firm pointed to autonomous use cases expanding SailPoint’s total addressable market to $90 billion. The same day, Cantor Fitzgerald reiterated an “Overweight” rating and $23 price target, citing agentic identity innovation and new fiscal 2029 financial targets from the analyst day.
SailPoint, Inc. provides an elaborate identity security platform for the enterprise, with its solutions allowing organizations to control, establish, and automate policies that allow them to attain regulatory compliance and define and maintain a robust security posture.
6. Netskope, Inc. (NASDAQ:NTSK)
Upside Potential: 24.36%
Number of Hedge Fund Holders: 31
With strong upside potential, Netskope, Inc. (NASDAQ:NTSK) ranks among the overlooked tech stocks to invest in now. Analysts remain split on price targets even as they stay aligned on the underlying growth story heading into fiscal 2027.
On June 25, 2026, KeyBanc analyst Eric Heath lowered the firm’s price target on Netskope, Inc. to $14 from $15 while keeping an “Overweight” rating. The cut came alongside the firm’s first-half 2026 chief investment officer survey, which showed the gap between “IT budget haves and have-nots” widening further. Heath noted that AI and AI-readiness spending jumped in priority by some of the largest margins KeyBanc has tracked since the technology emerged, and the firm recommended investors stick with security, data, infrastructure, and monitoring names as it adjusted targets across that space.
That note followed a June 18, 2026 update from TD Cowen, which reiterated a “Buy” rating on Netskope, Inc. with a $19 price target after meeting with management. The firm said industry trends remain largely intact and pointed to continued annual recurring revenue acceleration as fiscal 2027 progresses. TD Cowen said free cash flow should inflect higher in the second half of fiscal 2027, a shift it expects to change investor sentiment, and called the stock’s current valuation compelling. The stock is down over 30% year-to-date.
Netskope, Inc. is a California-based cybersecurity company. Founded in 2012, the company offers security, networking, and analytics solutions to a range of enterprises.
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. 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. 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. 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. 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., 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. 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. 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. 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. 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. 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. 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. 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 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 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 is down nearly 20% so far in 2026, while about 80% of covering analysts remain bullish.
Bentley Systems, Incorporated 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. 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.’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. 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. offers integrated software and technology management solutions for the public sector.
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