Fears of inflation and recession are hitting the tech sector particularly hard at the moment, as growth stocks are particularly sensitive to economic downturns, and this article introduces you to the best low-priced tech stocks

What are low-priced technology stocks?

"Low prices" are clearly relative and refer to stocks that are undervalued, either because investors do not recognize their inherent potential or because of an overreaction to macroeconomic events that causes the broader market to fall.

Stocks or sectors that move up or down too much in the economic cycle are considered high beta。Trading these stocks follows the advice of investment guru Warren Buffett, who says traders should "be fearful when others are greedy and greedy when others are fearful."

To identify undervalued stocks, you need to understand some of the fundamentals of stock valuation models。Most models use future income to determine present stock prices。This is related to the right of shareholders to share in future profits.

Metrics used to determine whether a stock is priced correctly include earnings per share (EPS), price-to-earnings (P / E), price-to-growth ratio (PEG) and dividend discount model (DDM)

The tech industry has been expanding since its inception.。It is no longer just software and hardware, but also emerging industries such as artificial intelligence, renewable energy, electric vehicles and cyber security.。Technology is all-encompassing, so you can find companies with technological competitive advantages in many industry sectors.

What are low-priced technology stocks?

United Microelectronics Corp ADR（NYSE: UMC）

Taiwan-based semiconductor chip manufacturer Lianhua Electronics Co., Ltd. was established in 1980 and is listed on the Taiwan and New York stock exchanges.。International investors can trade US-listed American Depositary Receipts (ADRs), which currently trade at 7 per share..$40

UMC, which makes computer chips for everything from iPhones to aircraft navigation systems, is the world's third-largest chip maker with about 7 percent of the global market.

Investor sentiment recently turned bullish。Microchips are an important part of modern activity, with UMC's share price of 5 in October 2022..At $38, it looks cheap, and although the price has recently recovered, it still does。It has a P / E ratio of 6.68, while the average P / E for the tech sector is 25.78, with a dividend yield of 6.64%

iClick Interactive Asia Group Limited ADR（NASDAQ: ICLK）

Online marketing platform iClick offers data analytics and other digital services。The company has a presence in the booming Chinese market, and shares in the form of American Depositary Receipts (ADRs) listed on the Nasdaq exchange provide international investors with an opportunity to gain exposure to the high-growth tech sub-sector and the Chinese economy.

iClick is currently trading at 5.00, which is among the technology stocks below $10, but has a trading record well above that level

The global recession will put pressure on marketing budgets, but iClick's business model has opened the door for it to regain market share from competitors.。It has a diversified customer base, which is always useful in a recession, and its core products provide companies with innovative ways to achieve their online marketing goals, and they are cost-effective

Wipro Limited ADR（NYSE: WIT）

Wipro is an Indian multinational technology company that provides information technology and business consulting services to clients worldwide.。The company, which is listed on the New York Stock Exchange as American Depositary Securities (ADRs), had a market capitalization of just over $26 billion as of January 2023.

Wipro's size is a testament to its position in a growth industry and to the fact that it is a company strong enough to withstand a recession.。Financial reports as of 2022 show that the company has 42.$6.9 billion in cash, so there is also enough idle funds to take advantage of new opportunities

Wipro is often compared to tech services giant Infosys。The larger of the two Bangalore-based companies had a market cap of 770 as of 12 January 2023..$800 million with a P / E ratio of 25.92。By comparison, Wipro stock is trading at a P / E ratio of 19.24, looks cheap, which means its share price has growth potential before keeping pace with its larger competitors

BlackBerry（TSX: BB，NYSE: BB）

BlackBerry shares fall below $10 from $138 as the go-to phone for corporate users。Shareholders frustrated in the decline may be looking for an opportunity to unwind

However, those who look at the situation with new eyes will find that BlackBerry has become a global leader in providing cybersecurity software using artificial intelligence and machine learning.。It is also investing in another huge growth market, the Internet of Things (IoT).

One of the biggest hurdles for BlackBerry is its reputation。As BlackBerry was once a favored stock by investors, its fall became more difficult。The restructuring of the company's business model takes time to work in the system and be reflected in the share price, but the key to buying low-priced technology stocks is to identify undervalued out-of-favor stocks

Nokia Corporation ADR（HSE: NOKIA, NYSE: NOK）

Like BlackBerry, Nokia has pulled out of mobile gaming in the past decade, but its transition to a 5G network business has been much more successful.。The stock has traded below $10 on the New York Stock Exchange's ADR listing since 2016, but Nokia has emerged as the best-worth low-priced tech stock to buy due to a combination of factors.

Cash from long-term 5G contracts is starting to flow into Nokia's accounts to the extent that the company wants to increase dividend payments to investors, and the revenue stream could increase further.

Not only is 5G one of the fastest growing areas of the economy, but political tensions between China and the West have also prevented Nokia's rival Huawei from grabbing market share.

Why buy low-priced tech stocks？

The tech sell-off in 2022 was a shock, with the flagship index, the Nasdaq 100, losing 33.1% of value。This is a major correction triggered by very real headwinds in the global economy, but the evolving economic cycle makes the current correction a gold buying opportunity

On a larger time scale, the Nasdaq 100 added 841% between 2010 and 2021。

Low-priced tech stocks tend to be small companies with "potential," which means that when investor sentiment is low, they may be more affected than companies with more stable sources of income.。This makes the sector ideal for those looking to bottom the market during a period of investor pessimism

What you need to know before investing in low-priced technology stocks

We have good reason to be cautious about low-priced tech stocks。Amazon, Facebook and Zoom all started out as low-priced tech stocks and have made stunning gains since, but not all of the currently undervalued tech stocks will be winners

Researchers and analysts tend to cover smaller companies less, making stock picking more difficult。To find key information, investors may need to go through the company's accounts in depth

Big tech companies also have a size-related advantage。Amazon, for example, dominates the home shopping market, which means any disruptive business faces countless barriers to entry if it wants to compete.。First-mover advantage can play a vital role

As new tech companies focus on innovation and the more obscure corners of the economy, they risk failing, or the social changes they hope for don't materialize.

The last potential pitfall of investing in low-priced tech stocks is that they may take a while to work。This may result in a loss on the position

How to buy low-priced tech stocks？

1.Select Broker

Not all brokers offer a broad market for low-priced technology stocks, and most prefer to focus on household names such as Microsoft and Apple。Any broker shortlist should include companies that are highly regarded in the trading community and are also regulated by primary regulators such as the SEC and FCA

2.Account opening and capital injection

The account opening process is relatively simple。Enrollment takes just a few minutes and can be done using a handheld or desktop device

There are many ways to send money to a new account, the easiest and fastest way is to use debit and credit cards

Other payment methods are also available, but check the terms and conditions to make sure there is no charge for deposits and withdrawals

3.Open Order and Set Position Size

Once the funds arrive, the next step is to buy the target stock。You can use the "Search" function to find the trading dashboard for each stock.

Enter the number of shares you want to buy in the corresponding data field and click or tap "Buy"

4.Set Stop Loss and Take Profit

Stop-loss and take-profit orders are risk management tools that instruct brokers to automatically close some or all of their positions when the price reaches a certain level

Buy-and-hold investors who adopt long-term strategies often decide not to use stop-loss and take-profit orders.。This allows them to avoid being kicked out of positions that could end up with price increases

Suggest small-scale trading as an alternative approach to risk management。Diversifying investments into several low-priced tech stocks helps avoid single stock risk

5.Purchase

After clicking "Buy," the "Portfolio" section of the platform will report real-time gains and losses on the position

Conclusion

Whether you're a seasoned investor or new to trading, low-priced tech stocks are worth considering

Modern trading platforms are ideal for companies with the potential to skyrocket in value.。Fully regulated brokers also offer a safe and secure trading environment and additional services designed to help you succeed。Choose the right broker and you can start your first trade