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
7. BILL Holdings Inc. (NYSE:BILL)
Number of Hedge Fund Holders: 55
BILL Holdings Inc. (NYSE:BILL) is one of the best low priced technology stocks to buy according to hedge funds. On May 7, BILL announced its financial results for FQ3 2026, delivering total revenue of $406.6 million, a 13% increase year-over-year. Core revenue, consisting of subscription and transaction fees, drove this growth by rising 16% to $371.1 million, while float revenue brought in $35.4 million. The company generated a net income of $12.8 million, up from a net loss of $11.6 million in the prior year’s FQ3, and grew its non-GAAP operating income by 50% year-over-year to $79.8 million.
Operationally, the financial operations platform served 493,800 businesses, processing 34 million transactions and $89 billion in total payment volume, which marks a 12% increase year-over-year. Alongside these results, BILL announced that its Board of Directors authorized a new share repurchase program of up to $1.0 billion in common stock over the next 24 months. This authorization includes unused amounts from its previous August 2025 program and follows the company’s FQ3 repurchase of ~1.0 million shares for $52 million.
Looking ahead, BILL Holdings Inc. (NYSE:BILL) provided financial guidance for both its FQ4 and the full fiscal year ending June 30. For FQ4, the company expects total revenue between $425.0 million and $435.0 million, representing 11% to 13% growth. For FY2026, BILL estimates total revenue will reach between $1,642.0 million and $1,652.0 million, with core revenue projected to grow 15% to 16% to a range of $1,496.3 million to $1,506.3 million.
BILL Holdings Inc. (NYSE:BILL) provides cloud-based financial operations software for small and midsize businesses, including accounts payable, accounts receivable, spend management, payments, and related automation tools.
6. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 56
Hewlett Packard Enterprise Company (NYSE:HPE) is one of the best low priced technology stocks to buy according to hedge funds. On May 11, HPE announced the availability of the HPE Compute Scale-up Server 3250, a purpose-built server designed for large, in-memory databases and critical business workloads. Powered by Intel Xeon 6 processors, this system features a modular architecture that scales from 4 to 16 sockets and supports up to 64 TB of DDR5 memory.
It is engineered to deliver high performance, rapid transactions, and real-time insights for enterprise resource planning, financial services applications, and emerging agentic AI workloads. The server is built with multi-layered security and resiliency features, spanning from the chip to the cloud through Hewlett Packard Enterprise Company (NYSE:HPE) Integrated Lights Out/iLO. This system establishes a silicon root of trust with validated firmware and safeguards data against threats using post-quantum cryptography.
For fault-tolerant uptime, the platform includes advanced memory error detection, correction, healing, and deconfiguration to ensure continuous availability for workloads with zero tolerance for downtime. The server stands as the first scale-up server validated by the SAP BW Edition HANA benchmark with at least 48 TB of memory, using an external node controller that delivers performance boosts significantly faster than standard Ethernet scale-out deployments.
Hewlett Packard Enterprise Company (NYSE:HPE) operates as a global technology provider focused on intelligent solutions. Its platforms help customers capture, analyze, and act on data from edge to cloud. The customer base ranges from small and medium-sized businesses to large enterprises and government organizations.
While we acknowledge the potential of HPE 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 HPE and that has 100x upside potential, check out our report about the cheapest AI stock.
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