In this article, we will discuss the 9 Best Low Priced Technology Stocks to Buy According to Hedge Funds.
On May 7, Anastasia Amoroso, Chief Investment Strategist at Partners Group Private Wealth, appeared on CNBC’s ‘Squawk on the Street’ to explore various market strategies, balancing the current semiconductor boom with potential opportunities in international markets and consumer sectors. Amoroso suggested that a potential breakthrough in Middle East stability could significantly boost consumer sentiment and discretionary spending, offering relief to sectors that have recently faced pressure. Despite the possibility of a mini rotation into other areas, the consensus remains that tech, specifically AI, continues to be the dominant and persistent market theme. This is supported by the performance of the Mag 7 stocks, which significantly lifted S&P 500 earnings growth for Q1 from 15% to 27%, with some individual companies reporting earnings surprises as high as 70% to 90%.
A critical driver of this continued tech optimism is the transition from conversational AI to agentic AI. Amoroso highlighted that monetization and tokenization are accelerating, with token usage in the system increasing 14-fold over the last 12 months. Reference is made to a Goldman Sachs study projecting this usage to grow by 24x in the coming years. This shift aligns with industry sentiment, such as comments from Lisa Su regarding the expanding TAM for CPUs as technology moves into an agentic generation. Discussing the international exposure as a necessary component of a wholesome portfolio, while many investors have historically been overweight on US stocks, Amoroso argued that international plays should not be ignored. The global trends toward on-shoring and strategic decoupling, particularly in Europe, are creating new dynamics. Additionally, a meaningful increase in defense spending in both Europe and Asia provides further incentive for international diversification. However, the recommendation remains to strategically overweight the US due to its superior technological advances, productivity gains, and constructive tax policy.
Our Methodology
We used screeners to identify tech stocks that are trading below $50 per share, and 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 are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2025.
Note: All data was sourced on May 14.
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).
9 Best Low Priced Technology Stocks to Buy According to Hedge Funds
9. Dynatrace Inc. (NYSE:DT)
Number of Hedge Fund Holders: 53
Dynatrace Inc. (NYSE:DT) is one of the best low priced technology stocks to buy according to hedge funds. On May 13, Dynatrace closed its FY2026 by surpassing $2 billion in ARR, marking an 18% increase (16% on a constant currency basis). For FQ4, the company reported total revenue of $532 million and subscription revenue of $506 million, both growing 19% year-over-year. Q4 GAAP income from operations was $37 million ($0.06 per diluted share), while non-GAAP income from operations reached $143 million ($0.41 per diluted share).
For the full FY2026, total revenue increased 19% to $2.02 billion, and subscription revenue rose 19% to $1.93 billion. Full-year GAAP operating income stood at $245 million, yielding a 12% operating margin, while non-GAAP operating income hit $592 million with a 29% operating margin. Dynatrace generated $562 million in GAAP operating cash flow and $529 million in free cash flow, while accelerating its capital return by repurchasing $224 million of its common stock during Q4.
Operational milestones included securing 22 deals exceeding $1 million in annual contract value, expanding log management consumption by over 100%, and completing the acquisitions of DevCycle and Bindplane. The company also surpassed $1 billion in lifetime AWS Marketplace sales and expanded its Model Context Protocol server capabilities with Anthropic’s Claude. Looking to FY2027, Dynatrace Inc. (NYSE:DT) targets full-year ARR between $2.38 billion and $2.40 billion, total revenue between $2.32 billion and $2.34 billion, and free cash flow between $613 million and $620 million.
Dynatrace Inc. (NYSE:DT) is a technology company that advances observability for digital businesses and primarily operates an AI-powered observability platform called Dynatrace.
8. Elastic (NYSE:ESTC)
Number of Hedge Fund Holders: 55
Elastic (NYSE:ESTC) is one of the best low priced technology stocks to buy according to hedge funds. On May 11, Elastic announced jina-embeddings-v5-omni, a new family of multimodal embedding models capable of representing text, images, video, and audio as vectors. This addition allows developers to perform search, classification, clustering, and deduplication across multiple media types, offering a flexible and cost-efficient solution without requiring users to rebuild their existing systems.
Available in small and nano sizes, the omni models share the same text embedding space as jina-embeddings-v5-text. This design enables existing v5-text users to maintain their current index, swap in an omni model, and immediately index multimedia into the same vectors. In independent evaluations across audio, image, text, and video, these compact models achieve frontier-class, top-tier performance for their size class, even outperforming significantly larger, single-modality systems.
The v5-omni models feature global multilingual capabilities, modular processing features, and adjustable embedding sizes to optimize for speed, accuracy, and lower storage and compute requirements. Both the jina-embeddings-v5-omni-small and jina-embeddings-v5-omni-nano models are available on the Elastic Inference Service, via the Jina API, and for local installation. The model weights are distributed freely for non-commercial use, while commercial use requires contacting Elastic (NYSE:ESTC) sales.
Elastic (NYSE:ESTC) is a Search AI company that provides software platforms for use across a range of environments
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