We lately revealed an inventory of 10 Ignored Tech Shares to Purchase Now. On this article, we’re going to check out the place Flex Ltd. (NASDAQ:FLEX) stands towards different ignored tech shares to purchase now.
After overcoming main macroeconomic challenges, the IT sector has began 2025 with recent 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. World IT spending is predicted to extend by 9.3%, pushed largely by double-digit progress 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 necessary progress 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 obstacles. The world financial system is already feeling the results of President Trump’s expansive tariff plans, which embody extra 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 because 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 issues in regards to the expertise displacing thousands and thousands of jobs, significantly 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 pondering with AI’s capabilities to make sure inclusive financial progress.
Moreover, cybersecurity has develop into a big precedence on the strategic agenda. As using AI will increase, so does the assault floor accessible to hackers. By 2028, it’s anticipated that world spending on cybersecurity will exceed $200 billion, as companies emphasize bolstering their defenses. Nonetheless, 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, even if 2025 holds nice promise for the IT business attributable to developments in generative AI, cloud migration, and sturdy IT funding, companies nonetheless need to cope with a posh net of moral, geopolitical, and authorized points. Profitable corporations will strike a steadiness between daring technological innovation, cautious threat administration, strategic provide chain range, 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 can also present engaging upside potential for buyers searching for past the traditional mega-cap giants.
To seek out ignored tech shares, we began by searching for corporations with a market capitalization larger than $5 billion, guaranteeing a focus on financially sturdy, 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 traditional valuation indicator to spotlight comparatively reasonably priced earnings-driven shares. We then evaluated these corporations 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 listing 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 will outperform the market by imitating the highest inventory picks of the very 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 proportion 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 main segments: Flex Agility Options (FAS) and Flex Reliability Options (FRS). It serves a variety of industries, offering options for cloud infrastructure and shopper units in addition to automotive, healthcare, and industrial gear. With headquarters in Austin, Texas, and a historical past relationship again to 1969, Flex has grown right into a distinguished participant in integrating cutting-edge manufacturing with next-generation expertise.
Flex Ltd. (NASDAQ:FLEX) reported distinctive monetary ends in the third quarter of FY2025, ended December 31, 2024. Income elevated to $6.6 billion, fueled largely by sturdy progress 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 sturdy value execution and a superior enterprise combine. Free money move for the quarter was $306 million, and administration reaffirmed its full-year free money move forecast of greater than $800 million.
Flex Ltd. (NASDAQ:FLEX) obtained 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 expertise emphasizes the corporate’s important position in scaling bodily AI compute platforms.
Strategic investments improve its prospects. Flex Ltd. (NASDAQ:FLEX) introduced in February 2025 that it will set up a 400,000-square-foot plant in Dallas to increase its energy product manufacturing footprint. This program makes an attempt to satisfy the rising demand for grid-to-chip knowledge heart infrastructure brought on by AI adoption.
Flex Ltd. (NASDAQ:FLEX) is an intriguing, ignored tech inventory for long-term buyers, because of its sturdy fundamentals, speedy growth into AI-driven companies, and a valuation that retains it off many buyers’ radars.
Total, FLEX ranks eighth on our listing of ignored tech shares to purchase now. Whereas we acknowledge the potential of FLEX, our conviction lies within the perception that sure AI shares maintain larger promise for delivering increased 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 standard AI shares misplaced round 25%. If you’re searching for an AI inventory that’s extra promising than FLEX however that trades at lower than 5 instances its earnings, try our report about this most cost-effective AI inventory.
READ NEXT: 20 Greatest AI Shares To Purchase Now and 30 Greatest Shares to Purchase Now In keeping with Billionaires.
Disclosure: None. This text is initially revealed at Insider Monkey.
