Now neglected tech stocks are buying now

We recently released a list 10 neglected tech stocks available now. In this article, we will explore Arrow Electronics, Inc. (NYSE:ARW) Buy now other neglected technology stocks.

After overcoming major macroeconomic challenges, the IT sector began 2025 with fresh vitality. The tech industry is ready for a revival after a period of instability characterized by high inflation, rising interest rates and global unpredictability. According to 62% of tech executives in the Deloitte poll, the industry is expected to be “healthy” or “very healthy” in 2025. Global IT spending is expected to grow by 9.3%, mainly due to double-digit growth in software and data center investment. As companies move AI programs from pilot projects to full production deployments, analysts expect generated AI, cybersecurity and cloud services to continue to be important growth drivers.

The rate of layoffs dropped significantly in 2024, indicating a growth in stability. However, new difficulties emerge, especially those related to geopolitical tensions and regulatory barriers. The world economy has felt the impact of President Trump’s extensive tariff plans, which include additional allegations against major technology-makers such as Taiwan, India and Vietnam, ranging from 26% to 49%. Although imports of semiconductors that are crucial to AI development have been temporarily exempted, tech companies that rely on international supply chains face new risks due to the unstable trade policy environment.

At the same time, the generated AI proved to be a double-edged sword. Although it is expected to contribute 21% to the U.S. GDP by 2030, World Economic Forum, There is growing concern about millions of jobs, especially executive roles. As World Economic Forum Highlight, the solution is to stop AI innovation, but to promote “real intelligence,” an approach that emphasizes the collaboration between human critical thinking and AI’s ability to ensure inclusive economic growth.

In addition, cybersecurity has become the focus of the strategic agenda. As AI usage increases, hackers can also attack surfaces. By 2028, global spending on cybersecurity will exceed $200 billion as companies emphasize strengthening their defense capabilities. However, only 24% of existing AI projects are considered secure enough, indicating that trust remains a major barrier to widespread use of AI.

All in all, while 2025 maintains great hope for the IT industry due to advances in 2025 due to advances in generative AI, cloud migration and strong IT investment, businesses still have to deal with complex ethical, geopolitical and legal issues. Successful companies will strike a balance between bold technological innovation, prudent risk management, strategic supply chain diversity, and dedicated stakeholder and customer confidence.

Against this dynamic backdrop, let's take a look at the 10 overlooked technology stocks purchased now, which not only prepares to capitalize on the upcoming opportunities, but also provides attractive overhead potential for investors seeking to transcend traditional large-stock giants.

To find neglected tech stocks, we first look for companies with a market capitalization of over $5 billion, ensuring a focus on large businesses with strong financial strength. We selected stocks with prices below 15 (P/E) from this category, using the P/E ratio as a regular valuation indicator to highlight relatively affordable income-driven stocks. We then used data from Insider Monkey's 2024 Q4 report to evaluate these companies based on sentiment from hedge funds. Finally, we selected ten companies with the smallest number of hedge fund investors to represent the list of neglected tech stocks we are buying now.

Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).

Arrow Electronics, Inc. (ARW): Buy now in neglected technology stocks

Close-up landscape of technicians soldering circuit boards in electronic manufacturing facilities.

P/E ratio: 14.84

Hedge Fund Holders: 35

Arrow Electronics, Inc. (NYSE:ARW) is an outstanding player in the technology industry, providing critical electrical components and commercial computer solutions to thousands of industrial and commercial customers. Arrow's global component and global enterprise computing solutions (ECS) segment operates in the Americas, EMEA and Asia Pacific, powering from aerospace and energy to the cloud and AI infrastructure.

The neglected technology stock recently demonstrated its resilience with its fourth quarter 2024 results. Arrow Electronics, Inc. (NYSE:ARW) exceeded the quarter ended December 31, 2024 with sales of $7.3 billion and non-GAAP earnings per share of $2.97. Despite the continued softness of several verticals, its global component division still generated $4.8 billion in sales, while ECS sales grew 12% year-on-year to $2.5 billion, driven by demand for hybrid cloud, infrastructure software and AI solutions. Operations totaled $326 million in cash flow, and Arrow maintained its prudent capital allocation by repurchasing $50 million in shares during the quarter.

Arrow Electronics, Inc. (NYSE:ARW) strategically prepares for future growth by establishing relevant alliances and expanding services. In March 2025, the company expanded its professional and professional services portfolio in North America with the goal of assisting channel partners in better leveraging AI, cloud and security prospects. These services target high-demand areas such as LLM management, AI deployment, application modernization and secure cloud backup.

Arrow Electronics, Inc. (NYSE:ARW) is also experiencing a global distribution agreement with Ohmite, a global distribution agreement with century-old leaders in industries such as transportation and aircraft.

Arrow Electronics, Inc. (NYSE:ARW) quietly gained momentum, a profitable buy for investors looking for neglected technology stocks, thanks to industry stability, expanded use of cloud and artificial intelligence, and a strong financial base.

Overall, ARW Ranked fifth Among the neglected tech stocks we are buying now. Although we acknowledge the potential of ARW, our belief is that certain AI stocks have greater hope and can provide higher returns in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than ARW but have less than 5 times its earnings, check out our report Cheapest AI stocks.

Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.

Disclosure: None. This article was originally published in Internal monkey.