In this article, we will be taking a look at the 10 Best Cheap Technology Stocks to Invest In. To skip our analysis of the recent technology trends, and market activity, you can go directly to see the 5 Best Cheap Technology Stocks to Invest In.
Technology has been at the forefront of advancement and innovation in the recent past and is expected to be the primary catalyst in the future as well. The advancements in technology have not only improved the quality of life for individuals but have also resulted in improved productivity and efficiency across almost all aspects of life.
According to McKinsey & Company, the latest trends in the technology revolve around 14 major technologies, with clean energy, mobility, and connectivity leading the trends in terms of the investments made during 2021. Clean energy technologies focused on the whole energy value chain, from power generation to storage and distribution, were at the forefront with $257 billion investment last year. Other major trends include applied AI, Cloud, and edge computing, Web3, and immersive reality technologies, among others.
Despite the growing investments and the increasing importance of technology in our lives, the technology sector and the stocks of the companies that are part of this sector have not fared well in the recent past. The Nasdaq-100 index, heavily weighted with technology stocks, was down year-to-date by nearly 31%, as of September 26, 2022.
Global markets have been going through a rough patch with fears of an economic slowdown due to inflation and aggressive monetary policies implemented by central banks. On September 21, the US central bank raised interest rates by three-quarters of a percentage point for the third consecutive time and signaled further increases in the future.
The increase in interest rates has led to a significant drop in share prices across the US market. If economic data fails to meet expectations, there’s potential for further declines in stocks. Given the uncertainty, diversification across different companies and sectors can be a good idea. Given the lower valuations, there could be an opportunity for long term investors to buy quality blue chip stocks.
JuliusKielaitis / Shutterstock.com
For the list of 10 Best Cheap Technology Stocks to Invest In, we found cheap stocks by finding stocks that were trading significantly below the average analyst price target.
We then filtered those stocks by only including tech companies and using the collective wisdom of hedge funds, we ranked them by the number of hedge fund holders in our database who held shares in the same stock at the end of Q2 2022.
10 Best Cheap Technology Stocks to Invest In
10. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 40
International Business Machines Corporation (NYSE:IBM), based in Armonk, New York, is a technology company engaged in providing hybrid cloud and artificial intelligence (AI) solutions. It