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. (NASDAQ:NAVN) 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. (NASDAQ:NAVN) 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. (NASDAQ:NAVN) 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. (NASDAQ:SAIL) 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. (NASDAQ:SAIL)’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. (NASDAQ:SAIL) 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. (NASDAQ:NTSK) 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. (NASDAQ:NTSK) 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. (NASDAQ:NTSK) is a California-based cybersecurity company. Founded in 2012, the company offers security, networking, and analytics solutions to a range of enterprises.
While we acknowledge the potential of NTSK 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 NTSK and that has 100x upside potential, check out our report about the cheapest AI stock.
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