Analysts love these tech stocks for their growth potential.

Tech stocks have lagged behind the overall market in 2021 as investors grow increasingly concerned about tax reform and potential regulatory crackdowns on Big Tech. Even after the recent slump, the tech sector is still one of the most expensive market sectors right now relative to its historical valuation, according to Bank of America. However, small-cap tech stocks are historically inexpensive relative to their large-cap counterparts, and there are plenty of buying opportunities among both small- and mid-cap tech stocks. These are Bank of America's seven top tech stock picks with market caps of less than $10 billion.

Allot (ticker: ALLT)

Allot specializes in deep packet inspection technology that allows telecommunication carriers to monitor and control data traffic. Analyst Tal Liani says the health crisis and 5G wireless network rollouts have helped accelerate Allot's growth. More reliance on remote work has raised cybersecurity awareness among small businesses. Allot's 5G NetProtect product helps guard service provider networks from malicious attacks. Dish Network Corp. (DISH) was Allot's first 5G NetProtect customer. Allot now has more than 20 million worldwide subscribers protected by Allot Secure. Bank of America has a "buy" rating and a $21 price target for ALLT stock.

AudioCodes (AUDC)

AudioCodes is a market leader in Voice over Internet Protocol networking. Liani says AudioCodes has benefited tremendously from its relationship with Microsoft Corp. (MSFT). In the most recent quarter, AudioCodes' Microsoft-related revenue was up 20%, and it now accounts for 45% of total revenue. Microsoft Teams revenue was up 170% from a year ago, and Liani says Teams adoption will continue to be a bullish catalyst. Unified communications as a service revenue was also up 15% in the quarter, while contact center revenue was up 20%. Bank of America has a "buy" rating and a $46 price target for AUDC stock.

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Karooooo (KARO)

Karooooo is a market leader in vehicle telematics, helping customers to track and communicate with fleets. Analyst Daniel Bartus says telematics represents a massive opportunity. He estimates that the total addressable global market size is more than $100 billion. He says the Singapore-based Karooooo can carve out a sizable piece of that global opportunity by focusing on geographical locations that are often ignored by larger competitors. Bartus says Karooooo trades at nearly a 50% discount compared with peers, making it an attractive value. Bank of America has a "buy" rating and a $52 price target for KARO stock.

Ping Identity Holding Corp. (PING)

Ping Identity is a cybersecurity company that produces identity access and management products that protect enterprise applications. Liani says Ping's first-quarter growth numbers suggest its aggressive investments in sales and cloud solutions are finally starting to pay off. He says the company's cloud-based solutions are now on par with its legacy on-premise products. As the global economy reopens, Liani says Ping customers feel a heightened sense of urgency to upgrade their identity security solutions as their outlooks become more certain and their budgets loosen. Bank of America has a "buy" rating and a $32 price target for PING stock.

Nova Measuring Instruments (NVMI)

Nova Measuring Instruments provides dimensional and materials metrology solutions used in semiconductor manufacturing. Analyst Jamie Zakalik says Nova has unique technology and is gaining market share in the massive and rapidly growing global semiconductor market. Also, the growing cost and complexity associated with chip manufacturing should enable Nova to sustain at least 15% sales growth and 20% earnings per share growth and reach at least $4 in EPS by 2024, Zakalik says. Nova's solid balance sheet also includes more than $8 in net cash per share. Bank of America has a "buy" rating and a $110 price target for NVMI stock.

Teradata Corp. (TDC)

Teradata specializes in business analytics, data solutions and hybrid cloud products and services. Teradata is investing heavily in converting its business from a perpetual license model to a recurring revenue model. The company is investing 70% of its research and development budget into cloud products and services. The cloud data market is growing at a 30% annual rate, analyst Wamsi Mohan says. He says the company's cloud optionality coupled with the stock's attractive valuation makes Teradata a compelling tech stock investment. Bank of America has a "buy" rating and a $67 price target for TDC stock.

Fiverr International (FVRR)

Fiverr is an online platform that connects gig workers and freelancers in hundreds of categories with businesses around the world. Fiverr originally started out offering gigs for just $5, but it recently announced that it is raising its max nonprofessional gig price from $995 to $10,000. Analyst Nat Schindler says he is encouraged that Fiverr is reporting sustained freelancing activity even in markets with high COVID-19 vaccination rates. Schindler says Fiverr is still in the early innings of its growth stage. Bank of America has a "buy" rating and a $335 price target for FVRR stock.

Seven small- and mid-cap tech stocks to buy:

— Allot (ALLT)

— AudioCodes (AUDC)

— Karooooo (KARO)

— Ping Identity Holding Corp. (PING)

— Nova Measuring Instruments (NVMI)

— Teradata Corp. (TDC)

— Fiverr International (FVRR)

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