The technology sector maintained momentum in 2024, emerging as the backbone of the stock market's exceptional performance. Leading the charge, the Nasdaq Composite Index, with its tech-heavy portfolio, soared 31.4%, outpacing the S&P 500’s 25.2% rise and the Dow Jones Industrial Average's 14.1% climb. This impressive performance highlights the unparalleled strength of tech companies in reshaping markets.
Key drivers of this growth were the rapid adoption of artificial intelligence (AI) and the surging demand for high-performance computing solutions. As enterprises integrated generative AI and advanced analytics, semiconductor companies thrived, providing the crucial infrastructure for these technologies. Similarly, the cloud computing boom remained unstoppable, with businesses flocking to hybrid and multi-cloud solutions to streamline operations and cut costs.
Improving macroeconomic conditions fueled the rally. The Federal Reserve's interest rate cuts and stabilizing inflation boosted investor confidence in growth-oriented tech stocks. Meanwhile, supply-chain recoveries revitalized the hardware segment, rounding out the sector's robust performance.
The tech sector’s growth trajectory shows no signs of slowing. AI will continue driving innovation, fueling demand for chips, software and cloud services. Cybersecurity, propelled by rising threats, will see increased enterprise and governmental spending. Advancements in 5G, blockchain and autonomous vehicles promise new revenue streams, while Gartner's forecast of a 9.3% rise in worldwide IT spending to $5.74 trillion in 2025 signals sustained industry expansion.
Smart Investing: Tech Stocks Under $10
For investors eager to ride the tech wave but wary of high valuations, affordable tech stocks under $10 offer a compelling entry point. These stocks provide exposure to the sector's growth potential while keeping investments accessible.
To identify the best picks, the Zacks Stock Screener is an invaluable tool. With the help of this Zacks tool, we have narrowed our search to four tech companies — Stratasys SSYS, Phunware PHUN, Bumble BMBL and VTEX VTEX — that are trading under $10.
Moreover, these stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy). The Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 and a Growth Score of A or B offer solid investment opportunities.
While lower-priced stocks can be more volatile, they offer an opportunity to capitalize on the technology sector’s continued expansion without overextending your portfolio. As AI, cybersecurity and other cutting-edge innovations drive the industry forward, these under-$10 stocks could deliver significant returns. For investors with a long-term perspective, now is an opportune moment to consider these value-packed tech plays.
Our Picks
Stratasys is a manufacturer of in-office rapid prototyping and manufacturing systems and 3D printers for automotive, aerospace, defense, electronic, medical, education and consumer product original equipment manufacturers. The stock carries a Zacks Rank #2 and has a Growth Score of B. You can see the complete list of today's Zacks #1 Rank stocks here.
Stratasys is benefiting from an increase in demand for 3D-printed equipment across several industries. The company’s focus on introducing new and innovative products is helping it win new deals. Strategic partnerships have helped Stratasys develop advanced 3D printing technologies for multiple industries, expanding its geographic reach and driving market penetration.
The stock is currently priced at $9.15. The Zacks Consensus Estimate for Stratasys’ 2025 earnings has moved up by a penny to 33 cents per share in the past 60 days.
Stratasys, Ltd. Price and Consensus
Stratasys, Ltd. price-consensus-chart | Stratasys, Ltd. Quote
Phunware provides an integrated software platform that equips companies with the products, solutions, and services to engage, manage and monetize their mobile application portfolios. The stock carries a Zacks Rank #2 and has a Growth Score of B.
Phunware's growth is driven by its expanding mobile engagement and monetization platform, which integrates data-driven insights with advanced analytics. The company benefits from rising demand for customer-centric solutions, particularly in healthcare and real estate. Its strategic focus on blockchain-enabled ecosystems and PhunToken adoption enhances revenue diversification and long-term scalability.
The stock is currently priced at $5.73. The Zacks Consensus Estimate for Phunware’s 2025 loss has narrowed to 84 cents from 99 cents per share projected in the past 60 days.
Phunware Price and Consensus
Phunware price-consensus-chart | Phunware Quote
Bumble is the parent company of Badoo and Bumble, two of the world's highest-grossing dating apps with millions of users worldwide. The Bumble platform enables people to connect and build equitable and healthy relationships. The stock carries a Zacks Rank #2 and has a Growth Score of A.
Bumble's growth is fueled by its unique women-first approach to online dating, which continues to resonate with users globally. Strategic international expansion, innovative features like AI-powered matchmaking and enhanced monetization through premium subscriptions drive user engagement and revenue growth. The rising adoption of digital dating boosts its long-term growth potential.
The stock is currently priced at $8.02. The Zacks Consensus Estimate for Bumble’s 2025 earnings has moved up by 6 cents to 86 cents per share in the past 60 days.
Bumble Inc. Price and Consensus
Bumble Inc. price-consensus-chart | Bumble Inc. Quote
VTEX provides a software-as-a-service digital commerce platform for enterprise brands and retailers. The company's platform enables customers to execute commerce strategy, including building online stores, integrating and managing orders across channels and creating marketplaces to sell products from third-party vendors. The stock carries a Zacks Rank #2 and has a Growth Score of A.
VTEX's growth is driven by its robust digital commerce platform, empowering businesses with seamless multichannel solutions. Expansion in Latin America and global markets, rising adoption of e-commerce by enterprises and strategic partnerships with major retailers bolster its growth. Continuous innovation in AI-powered tools and customer-centric features enhances its competitive edge.
The stock is currently priced at $5.75. The Zacks Consensus Estimate for VTEX’s 2025 earnings has moved up by a penny to 16 cents per share in the past 30 days.
VTEX Price and Consensus
VTEX price-consensus-chart | VTEX Quote
Zacks Naming Top 10 Stocks for 2025
Want to be tipped off early to our 10 top picks for the entirety of 2025?
History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>Stratasys, Ltd. (SSYS) : Free Stock Analysis Report
Phunware (PHUN) : Free Stock Analysis Report
Bumble Inc. (BMBL) : Free Stock Analysis Report
VTEX (VTEX) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
