4 Tech Stocks Under $10 With Strong Growth Potential for 2026

December 18, 2025 — 08:38 am EST Written by Shivangi Deora for Zacks-> The technology sector remained one of the most dynamic areas of the global economy in 2025, with a mixture of strong growth themes and ongoing macroeconomic headwinds shaping performance. Cloud computing, artificial intelligence (AI), cybersecurity, data-center expansion and digital transformation continued to drive investment and innovation throughout the year as companies of all sizes sought to modernize infrastructure and improve efficiency.The computer and technology sector has gained 25.3% year to date, outperforming the S&P 500 composite growth of 19.2%. According to the PwC Report, around 61% of investors believe the technology sector will draw the most investment over the next three years, far surpassing all other sectors.Image Source: Zacks Investment ResearchLooking ahead to 2026, the outlook for the technology sector broadly appears constructive, supported by continued enterprise investment in AI, software automation and digital engagement tools. As organizations aim to extract more value from data and improve operational agility, demand for specialized technologies is likely to accelerate. This could benefit low-priced tech stocks that have sound fundamentals and durable long-term growth prospects, supported by healthy financials, solid growth metrics and business models.Investing in low-priced tech stocks can offer attractive upside potential, particularly when these companies have improving fundamentals and clear growth drivers. With lower absolute share prices, even modest improvements in revenue growth, margins, or market sentiment can lead to much larger percentage returns.Nokia NOK is well-positioned for the ongoing technology cycle given the strength of its end-to-end portfolio. Nokia’s deal win rate is encouraging, with notable successes in the key 5G markets of the United States and China. The company has been steadily developing its 5G portfolio, strengthening AirScale and advancing the capabilities of its ReefShark chipset. Nokia’s extensive portfolio consists of around 20,000 patents, among which 7,000 are essential for 5G. Its solution facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity and improve efficiency.Financially, Nokia has a stable balance sheet. As of Sept. 30, 2025, the company had €4.89 billion ($5.74 billion) in cash and cash equivalents, with long-term interest-bearing liabilities of €2.34 billion ($2.74 billion).In November 2025, Nokia unveiled a strategy to lead the AI-driven transformation of networks and capitalize on the AI supercycle. Nokia is simplifying its structure into two core segments—Network Infrastructure and Mobile Infrastructure—aimed at accelerating innovation, improving customer focus and enhancing shareholder value. Nokia targets annual comparable operating profit of €2.7–€3.2 billion by 2028.Nokia carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchWith a Growth Score of B, the stock has gained 43.3% over the past year.

The Zacks Consensus Estimate for Nokia’s earnings for the current and next fiscal year has moved up 6.7% and 5.3%, respectively, in the past 60 days. In the last reported quarter, NOK delivered an earnings surprise of 16.7%.Lantronix, Inc. LTRX specializes in providing Industrial and Edge AI IoT solutions for high-growth applications in certain verticals, including enterprise IT, smart cities and commercial and defense unmanned systems. A key growth driver for Lantronix is its expanding presence in unmanned aerial systems (UAS). Recently, the company announced that its NDAA/TAA-compliant Edge AI technology and engineering services have been selected by Trillium Engineering, a leading maker of gimbaled imaging systems for UAS.During the first quarter of fiscal 2026, the company increased the number of drone OEM engagements from 10 to 17, highlighting accelerating customer adoption and market momentum. Management believes the drone business alone could represent 10%–15% of total revenue by fiscal 2027.From a financial health perspective, Lantronix reported strong gross margins, positive operating cash flow and a net cash position following debt reduction. In the first quarter, the company’s cash and cash equivalents were $22.2 million, reflecting an increase of more than $2 million from the previous quarter. For the second quarter of fiscal 2026, the company expects revenues between $28 million and $32 million, with a midpoint of $30 million. Non-GAAP EPS is projected between 2 cents and 4 cents, with 3 cents at the midpoint.Image Source: Zacks Investment ResearchWith a leaner cost structure, growing exposure to high-growth verticals and increasing recurring revenue, LTRX could deliver outsized returns into 2026 as growth scales and profitability becomes more consistent.With a Growth Score of A, the stock has surged 48.8% over the past year. Earnings estimates for Lantronix for the current and next fiscal year have moved up 42.9% and 90%, respectively, from the year-ago reported numbers. Lantronix has a trailing four-quarter earnings surprise of 16.7%, on average. LTRX carries a Zacks Rank #2 at present.Taboola.com Ltd. TBLA is a global leader in performance advertising, helping businesses grow across the open web. Its new performance advertising platform, Realize, extends Taboola’s capabilities beyond native advertising into larger performance channels such as display and social. The company is strengthening Realize with Generative AI features that help advertisers achieve measurable outcomes. Designed to function similarly to Google Ads or Meta Ads, Realize provides a streamlined, AI-driven platform that is easy for advertisers to adopt and manage.Also, Taboola’s improving operating leverage is notable. In the third quarter of 2025, adjusted EBITDA reached about $48 million, with margins exceeding 27%, while free cash flow totaled more than $46 million, representing a very high conversion rate from EBITDA. The balance sheet also remains solid, with a net cash position of roughly $41.5 million and ample liquidity supported by a new revolving credit facility. Strong cash generation has enabled aggressive share repurchases, with the company buying back around 14% of its shares year to date, underscoring management’s confidence in long-term value creation.For 2025, management forecasts revenue of $1.91–$1.93 billion. Adjusted EBITDA is expected to total $209–$214 million, with non-GAAP net income projected at $139–$144 million.Image Source: Zacks Investment ResearchWith a Growth Score of A, the stock has gained 11.4% over the past three months.

The Zacks Consensus Estimate for TBLA’s earnings for the current and next fiscal year has moved up 2.2% and 4.3%, respectively, in the past 60 days. In the last reported quarter, TBLA delivered an earnings surprise of 10%. Taboola carries a Zacks Rank #2 at present.TransAct Technologies TACT is a global leader in software-driven technology and integrated printing solutions serving both large and emerging markets. The company provides purpose-built technology and printing solutions that enhance operational efficiency and power high performance across the casino and gaming, foodservice and point-of-sale industries. The company is gaining from strong momentum in its Foodservice Technology business, driven by increased BOHA! Terminal unit sales and a successful land-and-expand strategy.The company’s strong balance sheet, supported by disciplined inventory management and solid cash levels, bodes well. As of September 2025, the company had $20 million in cash and cash equivalents, up from $14.4 million reported in December 2024.For full-year 2025, the company expects net sales to range between $50 million and $53 million, representing an increase from the previously guided low end of $49 million. Adjusted EBITDA for the year is still projected to fall between breakeven and $1.5 million.Image Source: Zacks Investment ResearchWith a Growth Score of A, the stock has jumped 15.8% over the past six months. Earnings estimates for TACT for the current and next fiscal year have moved up 18.4% and 6.9%, respectively, from the year-ago reported numbers. TransAct’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 80%. TACT carries a Zacks Rank #2 at present. Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational. From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportNokia Corporation (NOK) : Free Stock Analysis ReportLantronix, Inc. (LTRX) : Free Stock Analysis ReportTransAct Technologies Incorporated (TACT) : Free Stock Analysis ReportTaboola.com Ltd. (TBLA) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.This data feed is not available at this time.