We recently released a list 10 neglected tech stocks available now. In this article, we will explore other neglected technology stocks purchased immediately by Flex Ltd. (NASDAQ:FLEX).
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).
Engineer with pen and paper designs circuit diagram of switchgear.
P/E ratio: 11.59
Hedge Fund Holders: 52
Flex Ltd. (NASDAQ: FLEX) is a multinational manufacturing group operating in two major market segments: Flex Agile Solutions (FAS) and Flex Reliability Solutions (FRS). It serves a variety of industries, providing solutions for cloud infrastructure and consumer devices as well as automotive, healthcare and industrial equipment. With its headquarters in Austin, Texas and dating back to 1969, Flex has grown into an outstanding player in integrating state-of-the-art manufacturing with next-generation technologies.
Flex Ltd. (NASDAQ: Flex) reports outstanding financial results for the third quarter ended December 31, 2024 for the third quarter of fiscal year 2025. Revenue increased to $6.6 billion, mainly due to strong growth in data centers, healthcare and consumer markets. Its adjusted EPS rose 43% year-on-year to $0.77, with an initial operating margin of more than 6%, indicating a strong and excellent business portfolio of costs. Free cash flow for the quarter was $306 million, and management reiterated its full-year free cash flow forecast for more than $800 million.
Flex Ltd. (NASDAQ: FLEX) has won two outstanding Automotive News Rhythm Awards for its Jupiter computing platform and backup DC/DC converter. These technologies are critical to enabling software-defined vehicles and electric mobility, demonstrating Flex's leadership in next-generation automotive solutions. Flex's collaboration with TORC and NVIDIA in automated freight technology highlights the company's key role in expanding its physical AI computing platform.
Strategic investments can enhance its prospects. Flex Ltd. (NASDAQ:FLEX) announced in February 2025 that it will build a 400,000-square-foot factory in Dallas to expand its Power Product Product Product Protprint. The program sought to meet the growing demand for grid data center infrastructure caused by AI adoption.
Flex Ltd. (NASDAQ: Flex) is an interesting, overlooked technology stock for long-term investors, thanks to its strong basics, rapidly growing into an AI-powered business and keeping it away from many investors’ radars.
Overall, elasticity Ranked eighth Among the neglected tech stocks we are buying now. Although we acknowledge the potential of resilience, our belief is to believe that certain AI stocks have greater hope in providing higher returns and do so 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 more promising AI stocks than Flex, but their earnings are trading at less than 5 times the price, 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.