10 Best AI Software Stocks to Buy Now

8. Okta, Inc. (NASDAQ:OKTA)

Analyst Upside: 30.41%

Number of Hedge Fund Holders: 65

Okta, Inc. (NASDAQ:OKTA) is one of the best AI software stocks to buy now. On August 18, TD Cowen maintained a Hold rating on Okta, Inc. (NASDAQ:OKTA), with a price target of $115.

Shaul Eyal from TD Cowen reiterated the rating on OKTA ahead of the company’s Q2 FY2026 release scheduled on August 26. The company’s recent performance in the Identity & Access Management (IAM) sector remains solid, with strong trends reported in the industry. The analyst retains a Hold position on the stock despite the company’s positive start to FY2026 with better-than-expected Q1 results. However, Okta’s guidance for Q2 shows revenue and growth projections slightly below expectations, according to Eyal. This is mainly due to the macroeconomic uncertainties.

The company expects total revenue of around $710 million to $712 million, indicating growth of almost 10% year-over-year. Whereas, Wall Street expects Okta to achieve revenue of $711.84 million, which is slightly lower than the top end of the guidance. Eyal pointed out that while Okta’s new products have shown promising traction, the company’s outlook remains cautious. The exposure to federal spending and broader economic uncertainty could lead to potential deal delays.

Okta, Inc. (NASDAQ:OKTA) is an independent identity partner. The company serves customers with AI-integrated solutions to securely connect the right people to the right technologies.