We recently released a list 10 neglected tech stocks available now. In this article, we will explore Super Micro Computer, Inc. (NASDAQ:SMCI) Buy the position of other neglected technology stocks immediately.
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).
Team of technicians in the server room, testing and managing the latest server solutions.
P/E ratio: 9.81
Hedge Fund Holders: 45
Super Micro Computer, Inc. (NASDAQ:SMCI) is a global pioneer in high-performance servers and storage systems, serving markets such as enterprise data centers, cloud computing, artificial intelligence, 5G and Edge Computing. Based in San Jose, California, Super Micro has developed IT solutions that include modular servers, network devices, storage systems, and server management software.
The company is one of the most attractive and overlooked tech stocks today, taking advantage of a huge wave of AI demand. Super Micro forecast revenue in the second quarter of fiscal 2025 will be between $5.6 billion and $5.7 billion, a 54% year-on-year increase. Non-GAAP earnings per share are expected to be between $0.58 and $0.60, with a non-GAAP operating margin of about 7.9%. Although gross margins dropped slightly to 11.9% due to product and customer portfolio, Supermicro is focused on expanding the new AI-Pistimidized platform.
It is worth noting that Super Micro Computer, Inc. (NASDAQ:SMCI) has started shipping NVIDIA Blackwell products such as B200 HGX systems and GB200 NVL72 racks. The company is leading the way in liquid-cooled data center systems, with liquid cooling likely in 30% of new data centers within one year. Its data center building block solutions provide an end-to-end infrastructure that enables customers to reduce total cost of ownership by up to 40%.
Supermicro is rapidly expanding its manufacturing footprint and increasing production in Silicon Valley in Malaysia, Taiwan, Europe. It received $700 million in convertible premium notes to support its aggressive growth efforts.
Super Micro Computer, Inc. (NASDAQ:SMCI) has partnered with Steeldome to develop sophisticated virtualization and software-defined storage solutions for business and edge deployments, thus enhancing its AI and super-aware products.
Despite the pace, Super Micro Computer, Inc. (NASDAQ:SMCI) is also a neglected technology stock that provides investors with a unique opportunity to invest in a company that forecasts revenue of $23.5 billion to $25 billion in 2025, with a revenue target of $40 billion by 2026.
Overall, SMCI Ranked sixth Among the neglected tech stocks we are buying now. Although we acknowledge the potential of SMCI, our belief is that certain AI stocks have greater hope to offer higher returns and perform within 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 SMCI 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.