10 Promising Tech Stocks to Watch

When considering what tech stocks to invest in, a few are obvious, known bets: the Alphabets, Microsofts, and Teslas of the world.  Look a bit deeper, and you may find that there are scores of lesser-known but equally promising companies out there working to develop innovative and forward-thinking products/services through leveraging tech.  The following is a look at 10 of these promising tech stocks.

1. Agilysys, Inc. (AGYS)

Agilysys has carved a niche within the hospitality technology sector, providing a broad array of software solutions to enhance guest experiences and improve operational efficiency.  Its offerings span from point-of-sale systems to property management, inventory, and procurement services, all crucial for hospitality businesses looking to streamline operations and elevate customer service.

Agilysys, Inc. (AGYS -3.5%)

The company's recent financial performance, including a reported FQ1'24 non-GAAP EPS of $0.18 and revenue of $56.1 million, surpassing Wall Street estimates, reflects its robust market position and operational efficiency.  Agilysys's guidance for fiscal year 2024 anticipates continued growth, driven by a significant uptick in subscription revenue, further validating its potential for long-term success.

2. Model N, Inc. (MODN)

Model N operates at the intersection of technology and life sciences, offering cloud revenue management solutions tailored to these industries' complex regulatory and pricing environments.  With over two decades of experience, Model N has established itself as a leader in revenue management, providing tools that manage global pricing, government pricing, rebates, and channel data, among others.

Model N, Inc. (MODN +0.1%)

Analyst endorsements and increasing interest from hedge funds highlight Model N's strategic importance to life sciences and high-tech companies.  The company's solutions are critical for managing the intricate web of regulations and contracts, positioning Model N for growth as these sectors evolve.

3. Harmonic Inc. (HLIT)

Harmonic provides advanced video delivery and broadband solutions critical to digital media consumption.  With the world's increasing appetite for high-quality video content and reliable broadband access, Harmonic's technologies play a pivotal role in the media ecosystem.

Harmonic Inc. (HLIT -0.96%)

The company's focus on innovation, as evidenced by its contributions to video and broadband network advancements, sets the stage for significant growth.  Harmonic's financial health, marked by revenue growth and a solid hedge fund interest, further underscores its potential as a key player in the technology sector.

4. e2open Parent Holdings, Inc. (ETWO)

e2open is revolutionizing supply chain management with its cloud-based platform, addressing supply chains' growing complexity and global nature.  By integrating networks, data, and applications, e2open enables companies to optimize their supply chains across various dimensions, including planning, execution, and collaboration.

E2open Parent Holdings, Inc. (ETWO +0.61%)

The company's financial performance, including an FQ1 non-GAAP EPS of $0.05 and revenue of $160.12 million, although slightly missing analysts’ forecasts, demonstrates its capability to generate strong cash flow and provide valuable solutions to blue-chip clients, highlighting its growth trajectory and potential for innovation in supply chain management.

5. Aehr Test Systems (AEHR)

Aehr is a provider of testing equipment for semiconductor devices and stands to benefit from the semiconductor industry's growth.  Its technology ensures the reliability and quality of semiconductors, which are foundational to numerous emerging technologies, including AI, 5G, and electric vehicles.

Aehr Test Systems (AEHR -2.65%)

Aehr's recent financial performance, with a notable year-over-year revenue jump, positions it as a critical supplier amidst the semiconductor industry's expansion.  Its client base, including leading semiconductor companies, underscores Aehr's integral role in the technology ecosystem and its potential for further growth.

6. AST SpaceMobile (ASTS)

AST SpaceMovile is a pioneer in the satellite communications sector. It aims to extend mobile connectivity globally, particularly in underserved areas.  This mission positions AST SpaceMobile at the forefront of a nascent market with significant expansion potential.

AST SpaceMobile, Inc. (ASTS +0.92%)

Collaborations with significant telecom firms like AT&T, Google, and Vodafone demonstrate industry confidence in ASTS's technology and its ability to deliver mobile connectivity via satellites, suggesting a bright future for the company in the evolving communications landscape.

7. Ginkgo Bioworks (DNA)

Ginkgo Bioworks operates within the synthetic biology sector, creating custom organisms for various applications.  From healthcare to consumer goods, Ginkgo's technology platform offers innovative solutions that promise to revolutionize industries.

Ginkgo Bioworks Holdings, Inc. (DNA +3.79%)

Despite recent financial challenges, the company's long-term potential remains significant. This is driven by its ability to innovate by partnering with or acquiring various firms (Proof Diagnostics, Patch Biosciences, Reverie Labs) across different sectors, ensuring its relevance and growth in the biotech industry.

8. Enovix (ENVX)

Enovix is at the forefront of the next generation of lithium-ion batteries, incorporating silicon to enhance efficiency and sustainability.  This technological advancement is particularly relevant as industries seek more sustainable and efficient energy storage solutions.

Enovix Corporation (ENVX -2.45%)

Enovix's transition from R&D to market expansion, coupled with milestones like FDA approvals and military contracts, indicates its readiness to meet the growing demand across various sectors, including electric vehicles and consumer electronics, marking it as a company with significant growth potential.

9. Hims & Hers Health (HIMS)

Hims & Hers Health taps into the growing telehealth market, offering services in sexual health, hair loss, and mental health.  Its successful adaptation to the telehealth trend and expansion into sensitive health topics underscore its potential in the digital healthcare space.

Hims & Hers Health, Inc. (HIMS +0.78%)

HIMS's ability to carve a niche in telehealth and its operational success suggest a promising outlook for the company as it continues to broaden its service offerings.  Its focus on telehealth, especially in traditionally underserved or stigmatized areas, presents a unique growth opportunity, leveraging technology to fill critical gaps in healthcare provision.

10. Recursion Pharmaceuticals (RXRX)

Recursion Pharmaceuticals leverages AI in drug discovery, differentiating itself within the pharmaceutical industry.  The company's approach aims to significantly reduce the time and cost associated with bringing new drugs to market.  Recursion's partnership with AI leader Nvidia and its focus on data-driven pharmaceutical research underscores its innovative potential.

Recursion Pharmaceuticals, Inc. (RXRX +5.8%)

Despite fluctuations in its stock price, the strategic use of AI for drug discovery positions Recursion Pharmaceuticals as a key innovator in tackling complex health issues, promising long-term growth as it continues to develop and commercialize new therapeutics.

The market is brimming with smaller, innovative companies leveraging tech that are ripe for investment.  Though not household names, companies like Agilysys, Enovix, and Recursion Pharmaceuticals are making significant strides in their respective fields, from hospitality software solutions to advanced battery technology and AI-driven drug discovery.  These entities exemplify the rich potential and diversity of investment opportunities beyond the mainstream, highlighting the value of exploring under-the-radar companies that are at the cutting edge of technology and poised for growth.

For investors willing to venture beyond the obvious choices, these companies offer a gateway to participating in the next wave of technological innovation and market transformation.