The appeal of mid-cap stock investing is obvious to smart investors. Mid-caps are not as widely followed by analysts or retail investors as their large-cap counterparts. Company and product news travels a bit slower, and lower trading volumes mean less efficient market pricing mechanisms. Yet for investors who know where to look, undervalued stocks at bargain prices can be more plentiful and easier to find in the mid-cap universe.
Also, by definition, mid-caps are smaller than their large-cap counterparts and therefore have more room to grow. Mid-cap stocks are often younger companies with innovative products and ideas. When they do grow, they can grow very fast. At the same time, they are more established than small-cap stocks and should carry less risk.
Technology has been one of the most dynamic and profitable sectors of the economy for the last 25 years. Notably, mid-cap tech stocks have tremendous potential for big gains that can happen quickly. Here are six of the best mid-cap tech stocks to buy now:
Hewlett Packard Enterprise Co. (HPE)
HPE is a California-born IT vendor that provides both hardware and software solutions for businesses. Founded by two Stanford University students in 1939 in a rented garage, you could call it an OG Silicon Valley startup. A product line that began with audio oscillators – impressing customers like Walt Disney Studios – has since expanded with the times and technological evolution.
“HPE is a top-five player in its core markets, and we expect it to remain so, competing with Dell, Lenovo, Super Micro and others,” writes Eric Compton, director of technology equity research for Morningstar.
Analysts expect revenue to top $34 billion by 2026 and give the stock an average price target of just over $20.
Akamai Technologies Inc. (AKAM)
AKAM is a cybersecurity and cloud computing technology company for businesses. While it began as a content delivery network, its timely shift into cybersecurity and edge computing has helped it thrive today as “the best delivery business in the world,” according to Samuel Siampaus, an equity analyst at Morningstar.
Cybersecurity now represents over two-thirds of the firm’s revenue, which reached nearly $4 billion last year. That is a 5% increase in revenue year over year. Analysts expect further growth in 2025 and 2026, when revenue may reach nearly $4.4 billion.
The company does face increased competition from rivals, but Morningstar analysts still expect it to maintain its competitive advantage over the coming decade. They also award it an exemplary capital structure and a fair value of $135. This is well above its current trading price of under $85.
FSLR sells responsibly produced eco-efficient photovoltaic solar modules. As a truly American company, manufacturing is done in the U.S. and does not rely on Chinese imports. This could be a real boon to the business given the current tariff situation.
“First Solar’s module business is in a drastically improved competitive position relative to a few years ago,” writes Brett Castelli, an equity analyst at Morningstar. It has found a competitive advantage in the U.S. and India, where policies have been favorable. In particular, the solar manufacturing incentives in the 2022 Inflation Reduction Act “are likely to drive a dramatic reshoring of solar manufacturing capacity, and we expect First Solar to lead the way,” Castelli writes.
Morningstar analysts give the company a fair value of $190, though other analysts go as high as $304.
JBL is a U.S.-based global manufacturing company that provides businesses with engineering, manufacturing and supply chain management solutions. It has offices in over 25 countries where it serves companies in a variety of industries, from health care to smartphones and home appliances.
The heart of the company is manufacturing, but it also helps with supply chain and logistics, automation, product design and engineering. Its focus on emerging technologies keeps it at the forefront of tech development.
Analysts are bullish on the stock, anticipating strong revenue growth over the coming years. The average price target for the stock is $173, well above its current trading price of under $144.
Insight Enterprises Inc. (NSIT)
NSIT operates globally, providing IT and cloud-computing services to its clients, which are mostly schools, hospitals and government entities. The company is heavily involved in moving its clients’ platforms and processes into the cloud and helping them integrate artificial intelligence solutions into their business and service functions.
Insight seeks to be a one-stop shop for its clients. The company can provide customers with all the necessary hardware to complement their software, and it can help with nearly all aspects of IT.
Most of the company’s $9.2 billion in annual sales comes from hardware, with software making up about less than 30% of its net sales. Services account for about 20% of net sales. The majority of its customers are in North America, but the firm does a substantial amount of business in Europe, the Middle East, Africa and Asia.
The semiconductor industry is currently one of the most important lines of business on earth. The demand for semiconductors, or chips, seems to know no limits. Nearly every product consumers buy today – from phones and televisions to automobiles – contains multiple microchips. RMBS is a prominent mid-cap name in that massive global business.
RMBS isn’t content to simply manufacture chips to order. Instead, the company is on the cutting edge of semiconductor engineering. Its central products include memory interface chips and silicon IP chips. The company is expected to generate over $695 million in revenue this year and $790 million in 2026.
Another thing to keep in mind is that the U.S. has made a substantial investment in the semiconductor industry through the 2022 CHIPS and Science Act. Conceivably, this long-term commitment by the federal government could benefit RMBS, which – although it does business around the world – is based in Sunnyvale, California.
