We lately printed an inventory of 10 Ignored Tech Shares to Purchase Now. On this article, we’re going to try the place Flex Ltd. (NASDAQ:FLEX) stands in opposition to different missed tech shares to purchase now.
After overcoming main macroeconomic challenges, the IT sector has began 2025 with contemporary vigor. The tech sector is now prepared for a resurgence after a interval of instability characterised by excessive inflation, rising rates of interest, and worldwide unpredictability. The sector is predicted to be “wholesome” or “very wholesome” in 2025, in line with 62% of tech executives polled by Deloitte. International IT spending is predicted to extend by 9.3%, pushed principally by double-digit development in software program and knowledge heart investments. As corporations transfer AI initiatives from pilot tasks to full-scale manufacturing deployments, analysts anticipate that generative AI, cybersecurity, and cloud companies will proceed to be vital development drivers.
The speed of layoffs dropped considerably in 2024, indicating rising stability. However new difficulties have surfaced, particularly in relation to geopolitical tensions and regulatory limitations. The world economic system is already feeling the results of President Trump’s expansive tariff plans, which embrace further costs on main tech manufacturing international locations like Taiwan, India, and Vietnam that vary from 26% to 49%. Though imports of semiconductors, that are important for the event of AI, have been briefly exempted, tech corporations that depend on worldwide provide chains face new dangers on account of the unstable commerce coverage local weather.
In the meantime, generative AI is proving to be a double-edged sword. Whereas it’s projected to contribute 21% to U.S. GDP by 2030, as reported by the World Financial Discussion board, there are rising considerations concerning the know-how displacing thousands and thousands of jobs, notably administrative roles. Because the World Financial Discussion board highlights, the answer lies not in halting AI innovation however fostering “Genuine Intelligence”—an strategy emphasizing the collaboration of human important considering with AI’s capabilities to make sure inclusive financial development.
Moreover, cybersecurity has change into a big precedence on the strategic agenda. As using AI will increase, so does the assault floor obtainable to hackers. By 2028, it’s anticipated that international spending on cybersecurity will exceed $200 billion, as companies emphasize bolstering their defenses. Nevertheless, solely 24% of present gen AI tasks are regarded as sufficiently safe, indicating that belief remains to be a significant impediment to the widespread use of AI.
In abstract, although 2025 holds nice promise for the IT trade on account of developments in generative AI, cloud migration, and sturdy IT funding, companies nonetheless must cope with a posh net of moral, geopolitical, and authorized points. Profitable corporations will strike a steadiness between daring technological innovation, cautious danger administration, strategic provide chain variety, and a dedication to upholding stakeholder and buyer confidence.
Towards this dynamic backdrop, let’s have a look at 10 Ignored Tech Shares to Purchase Now, which aren’t solely able to capitalize on upcoming alternatives however may additionally present engaging upside potential for buyers looking for past the traditional mega-cap giants.
To search out missed tech shares, we began by on the lookout for corporations with a market capitalization better than $5 billion, making certain a focus on financially robust, large-cap enterprises. We selected shares from this class that had a price-to-earnings (P/E) ratio of lower than 15, utilizing the P/E ratio as a standard valuation indicator to spotlight comparatively inexpensive earnings-driven shares. We then evaluated these companies based mostly on hedge fund sentiment, using knowledge from Insider Monkey’s fourth quarter 2024 report. Lastly, we selected the ten corporations with the least variety of hedge fund buyers to symbolize our checklist of Ignored Tech Shares to Purchase Now.
Why are we within the shares that hedge funds pile into? The reason being easy: our analysis has proven that we are able to outperform the market by imitating the highest inventory picks of one of the best hedge funds. Our quarterly e-newsletter’s technique selects 14 small-cap and large-cap shares each quarter and has returned 373.4% since Might 2014, beating its benchmark by 218 share factors (see extra particulars right here).
Flex Ltd. (FLEX): Amongst Ignored Tech Shares to Purchase Now
An engineer with a pen and paper designing a switchgear circuit diagram.
P/E Ratio: 11.59
Hedge Fund Holders: 52
Flex Ltd. (NASDAQ:FLEX) is a multinational manufacturing conglomerate that operates in two major segments: Flex Agility Options (FAS) and Flex Reliability Options (FRS). It serves a variety of industries, offering options for cloud infrastructure and shopper gadgets in addition to automotive, healthcare, and industrial tools. With headquarters in Austin, Texas, and a historical past courting again to 1969, Flex has grown right into a distinguished participant in integrating cutting-edge manufacturing with next-generation know-how.
Flex Ltd. (NASDAQ:FLEX) reported distinctive monetary leads to the third quarter of FY2025, ended December 31, 2024. Income elevated to $6.6 billion, fueled principally by robust development within the knowledge heart, healthcare, and shopper markets. Its adjusted EPS elevated 43% year-over-year to $0.77, with working margins above 6% for the primary time, indicating robust value execution and a superior enterprise combine. Free money circulate for the quarter was $306 million, and administration reaffirmed its full-year free money circulate forecast of greater than $800 million.
Flex Ltd. (NASDAQ:FLEX) acquired two excellent 2025 Automotive Information PACE Awards for its Jupiter Compute Platform and Backup DC/DC Converter. These applied sciences are important to enabling software-defined automobiles and electrical mobility, demonstrating Flex’s management in next-generation automotive options. Flex’s collaboration with Torc and NVIDIA on autonomous trucking know-how emphasizes the corporate’s important function in scaling bodily AI compute platforms.
Strategic investments improve its prospects. Flex Ltd. (NASDAQ:FLEX) introduced in February 2025 that it might set up a 400,000-square-foot plant in Dallas to increase its energy product manufacturing footprint. This program makes an attempt to meet the rising demand for grid-to-chip knowledge heart infrastructure brought on by AI adoption.
Flex Ltd. (NASDAQ:FLEX) is an intriguing, missed tech inventory for long-term buyers, because of its robust fundamentals, speedy improvement into AI-driven companies, and a valuation that retains it off many buyers’ radars.
Total, FLEX ranks eighth on our checklist of missed tech shares to purchase now. Whereas we acknowledge the potential of FLEX, our conviction lies within the perception that sure AI shares maintain better promise for delivering greater returns, and doing so inside a shorter time-frame. There may be an AI inventory that went up for the reason that starting of 2025, whereas well-liked AI shares misplaced round 25%. In case you are on the lookout for an AI inventory that’s extra promising than FLEX however that trades at lower than 5 instances its earnings, take a look at our report about this most cost-effective AI inventory.
READ NEXT: 20 Finest AI Shares To Purchase Now and 30 Finest Shares to Purchase Now In keeping with Billionaires.
Disclosure: None. This text is initially printed at Insider Monkey.
