In this article, we will take a look at the 10 Best AI Software Stocks to Buy Now.
Artificial Intelligence continues to remain in the limelight for 2025, with AI software companies at the center of it. Analysts believe that AI will slowly impact software, and the companies that invest in infrastructure will survive. However, according to Jefferies analyst Brent Thill, some software companies are vulnerable to the AI megatrend, but others will evolve and thrive. “We believe AI is a transformational wave, not a destructive hurricane,” added Thill.
Thill believes that software AI fears are overblown and the pace of AI disruption will be evolutionary, not existential.
“The growing fear that AI will fundamentally change how enterprise software is traditionally built and used has weighed heavily on investor sentiment. Infrastructure and security names have remained resilient amid broader software sector weakness, supported by increasing AI-driven demand and cloud workloads,” added Thill.
AI is continuing to transform from generative AI to agentic AI. According to Tirias Research from Forbes, AI agents will start autonomously chaining AI models together, forming thoughts, executing tasks, and collaborating with other services. “Human prompting will no longer be the sole driver of AI activity once autonomous agents begin to generate usage on their own,” Tirias Research mentioned. The annual rate of token generation is estimated to increase from 677 trillion in 2024 to 2.09 quadrillion by the end of 2025 and reach 77 quadrillion by the end of 2030.
With these industry trends in mind, let’s turn to the 10 Best AI Stocks to Buy Now.
A scientist at a computer station, surrounded by a neural network of artificial intelligence code.
Our Methodology
To compile the list of 10 best AI software stocks to buy now, we shortlisted the largest software stocks involved in offering AI software services. We then ranked these best AI software stocks in ascending order of upside potential. We took the data for the upside potential from CNN. We also mentioned the number of hedge funds holding stakes in these stocks, and the data for hedge funds is taken from Insider Monkey’s Hedge Fund database, updated as of Q1 2025.
Note: The data was recorded on August 15.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best AI Software Stocks to Buy Now
10. Palo Alto Networks, Inc. (NASDAQ:PANW)
Analyst Upside: 24.23%
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the best AI software stocks to buy now. On August 15, Wells Fargo reiterated a Buy rating on Palo Alto Networks, Inc. (NASDAQ:PANW), keeping the price target at $235.
Andrew Nowinski from Wells Fargo maintained his rating on PANW ahead of its Q4 FY2025. The company posted strong revenue of $2.54 billion, up 16% year-over-year and exceeding estimates of $2.50 billion. The company’s projection was to post revenue between $2.22 billion and $2.25 billion, which it surpassed by quite a margin. The next-generation security ARR soared over 32% from a year ago to $5.6 billion.
“We exited fiscal year 2025 with an acceleration in RPO, and surpassed the $10 billion revenue run-rate milestone, positioning ourselves well for sustained growth ahead,” said Nikesh Arora, chairman and CEO of Palo Alto Networks.
In the last two years, Palo Alto Networks has not missed earnings consensus while missing revenue estimates once. The majority of analysts covering PANW have reiterated their estimates over the last 30 days, suggesting the company will stay on course heading into FY2026. Nowinski also retains his rating on the cybersecurity firm, showing optimism on the company’s outlook. For FY2026, the company anticipates the total revenue between $10.47 billion to $10.52 billion, indicating year-over-year growth of 14%. Whereas, the next-generation security ARR is expected to be in the range of $7 billion to $7.10 billion, reflecting growth rate of 26-27% from a year ago.
Palo Alto Networks, Inc. (NASDAQ:PANW) offers comprehensive AI-powered security solutions across network, cloud, and security operations.
9. International Business Machines Corporation (NYSE:IBM)
Analyst Upside: 25.15%
Number of Hedge Fund Holders: 57
International Business Machines Corporation (NYSE:IBM) is one of the best AI software stocks to buy now. On July 14, International Business Machines Corporation (NYSE:IBM) reported that it had designed and implemented a digital evolution project for Nedgia.
Nedgia is a gas distributor of the Naturgy Group. IBM designed the digital evolution project that uses generative AI agents. The project creates an innovative contact center supported by virtual agents and is a cutting-edge application of generative AI. This solution strengthens customer service by integrating digital agents into the company’s standard telephone and digital customer service channels.
IBM’s digital solution allows Nedgia to replicate and scale automation use cases to resolve most interactions. The automation process includes services such as appointment management for periodic inspections and access to meter reading information. In the future, the solution will also offer the ability to modify supply data points. All these solutions will allow customers to manage their appointments automatically.
While IBM continues to serve in AI technology, Hans Engel from Erste Group sees IBM’s trouble with its revenue growth as a contest of broader sector technology performance. On August 14, Engel downgraded IBM from Buy to Hold. Engel has shown concern about the company’s current P/E ratio, which it considers high given the company’s growth outlook. The company’s 2025 forecast reflects moderate revenue growth of almost 5% from a year ago, while the P/E ratio of the stock is high in view of the below-average growth prospects.
International Business Machines Corporation (NYSE:IBM) offers integrated services and solutions to enterprises. The company is a leading provider of global hybrid cloud and AI, and consulting expertise.
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.
7. Accenture plc (NYSE:ACN)
Analyst Upside: 34.41%
Number of Hedge Fund Holders: 69
Accenture plc (NYSE:ACN) is one of the best AI software stocks to buy now. On August 13, Accenture plc (NYSE:ACN) announced its partnership with Qatar Airways.
Accenture and Qatar Airways have collaborated to revolutionize the aviation industry through AI technologies. The partnership established ‘AI Skyways’ to provide AI for customer experience, operational efficiency, employee development, environmental focus, and airline group performance. This collaboration also supports the development of AI-powered solutions, advancing AI in the wider aviation sector.
“Together, Qatar Airways and Accenture are applying innovative technologies and new ways of working to create new value for the airline and its customers. Our AI Skyways partnership is a key engine of this ambition, embedding and scaling AI to create outstanding travel experiences for passengers and deliver greater value to the airline group,” said Accenture Chair and Chief Executive Officer, Ms. Julie Sweet.
AI Skyways will become the base for value-led AI initiatives across the Qatar Airways Group through its AI operations, data, and platform offerings. It will accelerate the implementation of AI offerings across different aviation use cases to provide travelers with exceptional travel experiences.
Accenture plc (NYSE:ACN) is a leading professional services company. It is focused on AI-powered services and solutions across strategy and consulting, technology, operations, Industry X, and Song.
6. EPAM Systems, Inc. (NYSE:EPAM)
Analyst Upside: 34.74%
Number of Hedge Fund Holders: 46
EPAM Systems, Inc. (NYSE:EPAM) is one of the best AI software stocks to buy now. On August 8, Stifel Nicolaus reiterated a Buy rating on EPAM Systems, Inc. (NYSE:EPAM) stock, keeping the price target at $246.
Stifel Nicolaus analyst David Grossman kept his rating on EPAM Systems following the Q2 FY2025 results. EPAM achieved a total revenue of $1.35 billion during Q2, up by 18% from a year ago and surpassing consensus by $20.09 million. The company posted positive organic growth for a straight third quarter, with a 5.3% organic growth year-over-year. Grossman remains optimistic on EPAM as the company’s six verticals and three geographic regions showed strong year-over-year growth, reflecting broad-based performance improvements.
EPAM Systems is expanding its market-leading position as an AI-native transformation firm. With successful scaling and optimizing its global delivery hubs, the company is improving its ability to deliver strategic goals.
EPAM Systems, Inc. (NYSE:EPAM) offers digital engineering, cloud, and AI-enabled transformation services. The company is also a business and experience consulting partner for international enterprises.
5. Adobe Inc. (NASDAQ:ADBE)
Analyst Upside: 35.27%
Number of Hedge Fund Holders: 111
Adobe Inc. (NASDAQ:ADBE) is one of the best AI software stocks to buy now. On July 10, Adobe Inc. (NASDAQ:ADBE) announced its multi-year partnership with the Premier League.
Adobe will offer new AI-powered personalized digital experiences to the Premier League’s 1.8 billion fans globally and provide opportunities for them to express their creativity. The partnership will connect fans with their favorite clubs, players, and moments through personalized experiences based on their unique interests. Adobe’s Express will allow a quick and easy content creation app, powering fan engagement, while Firefly generative AI will give fans new ways to create and share Premier League content.
Through Adobe Express and Firefly, the Premier League will deepen fan engagement and personalize the Fantasy Premier League experience, create on-brand marketing campaign content at scale with generative AI, real-time relevant news alerts, engage fans in the moment, and activate fan loyalty.
As Adobe Inc. continues to strive to make new AI-powered collaborations, Ben Reitzes from Melius Research does not see things happening that easily for the company. On August 11, Reitzes downgraded Adobe from Hold to Sell, keepingthe price target at $310. The analyst stated that the SaaS companies are in the early innings of multiple contractions given the shift to AI. Reitzes sees value continuing to shift toward infrastructure winners such as Microsoft and Oracle at the expense of companies like Adobe. Reitzes has cut Adobe’s 2026 and 2027 estimates along with lowering the rating.
Adobe Inc. (NASDAQ:ADBE) is a technology company that offers AI-powered products, services, and cloud solutions to imagine, create, optimize, and engage with content across surfaces and fuel digital experiences.
4. ServiceNow, Inc. (NYSE:NOW)
Analyst Upside: 35.49%
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the best AI software stocks to buy now. On August 1, ServiceNow, Inc. (NYSE:NOW), along with Salesforce, committed a $1.5 billion new investment to Genesys.
The latest investment will help accelerate Genesys’ agentic AI customer experience orchestration opportunity. This also deepens Genesys’ global partnership with ServiceNow and Salesforce. Both companies are going to equally invest in Genesys, each contributing $750 million. ServiceNow will combine its Customer Service Management (CSM) workflow with Genesys Cloud to create a unified experience. The integrated solution will be AI-powered, which will connect service teams through a single desktop, centralize routing across departments, and optimize workforce engagement.
“Our investment in Genesys accelerates our vision for the agentic enterprise, where the ServiceNow AI Platform intelligently orchestrates end-to-end customer experiences. Together, ServiceNow and Genesys are enabling businesses to deploy AI-based customer journeys that anticipate needs, personalize at scale, and deliver measurable outcomes,” said Amit Zavery, president, chief product officer, and chief operating officer at ServiceNow.
Proceeds from the investment will be used by Genesys to repurchase shares from the company’s existing equity holders. The investment is expected to close by the end of Genesys’ FY2026, subject to customary closing conditions.
ServiceNow, Inc. (NYSE:NOW) offers cloud-based solutions for digital workflows. The company operates the Now platform, an AI platform for digital transformation, machine learning, process mining, robotic process automation, analytics, and low-code development tools.
3. Salesforce, Inc. (NYSE:CRM)
Analyst Upside: 44.37%
Number of Hedge Fund Holders: 140
Salesforce, Inc. (NYSE:CRM) is one of the best AI software stocks to buy now. On August 7, Salesforce, Inc. (NYSE:CRM) announced that it has signed a definitive agreement to acquire Waii.
Waii is a leading enterprise-grade natural language-to-SQL platform. The company translates plain-language questions to complex, production-ready SQL queries, assisting users in accessing and taking action on data more efficiently. Waii’s technology is designed in such a way that it solves problems by creating a dynamic metadata knowledge graph that maps an enterprise’s entire data structure.
“The future of business isn’t about having the most data; it’s about making that data speak a common language. Our vision is to empower every employee, from the boardroom to the frontline, to have a trusted conversation with their data. At Salesforce, we know that a deep understanding of metadata is the key to this future. With Waii, we’re not just augmenting our stack; we’re acquiring the catalyst that makes this vision a reality for our customers,” said Raveendrnathan Loganathan, EVP Salesforce Data Cloud.
Salesforce plans to integrate Waii into Data Cloud. This will empower the company’s agentic workflows and AI-driven insights across the Salesforce platform, including Agentforce and Tableau Next. Salesforce expects the acquisition to close in the company’s Q3 FY2026, subject to customary closing conditions.
Salesforce, Inc. (NYSE:CRM) offers customer relationship management technology that connects companies and customers together. The company offers AI integrated solutions, such as creating industry-specific AI agents with Agentforce.
2. NICE Ltd. (NASDAQ:NICE)
Analyst Upside: 44.94%
Number of Hedge Fund Holders: 23
NICE Ltd. (NASDAQ:NICE) is one of the best AI software stocks to buy now. On August 14, Morgan Stanley downgraded the price target on NICE Ltd. (NASDAQ:NICE) stock from $202 to $193, maintaining its Overweight rating.
Meta Marshall from Morgan Stanley lowered the price target on NICE after the company reported Q2 FY2025 results. The company posted revenue of around $726.7 million, surpassing estimates by $13.50 million and up 8% year-over-year. NICE’s cloud business soared over 12% from a year ago, contributing significantly to the total revenue. The AI and self-service ARR also recorded exceptional growth of 42% year-over-year, reaching $238 million.
Despite the downgrade in NICE’s price target, the analyst remains optimistic on the company’s future. Marshall continues to view the current valuation as ‘overly punitive on AI disruption risk.’ Moreover, the analyst also sees a favorable setup in the capital markets day planned for October 2025. NICE reiterated full-year 2025 revenue guidance to be in the range of $2.92 billion to $2.94 billion, indicating a 7% increase from a year ago. The company has increased its EPS outlook, which is expected to be in the range of $12.33 to $12.53, representing 12% growth from a year ago.
NICE Ltd. (NASDAQ:NICE) is an AI software provider, offering AI-powered cloud platforms for customer engagement, and financial crime and compliance.
1. Atlassian Corporation (NASDAQ:TEAM)
Analyst Upside: 49.70%
Number of Hedge Fund Holders: 82
Atlassian Corporation (NASDAQ:TEAM) is one of the best AI software stocks to buy now. On August 8, Truist Financial lowered the price target on Atlassian Corporation (NASDAQ:TEAM) from $275 to $230, keeping its Buy rating on the stock.
Joel Fishbein from Truist Financial downgraded the price target on TEAM despite achieving upside to the analyst’s top and bottom-line estimates during Q4 FY2025. The company posted revenue of $1.38 billion during Q4, exceeding estimates of $1.36 billion and growing 22.3% year-over-year. The increase in revenue was driven by improvements in Atlassian’s enterprise sales motion, which fueled platform deal momentum.
Fishbein has lowered the price target while retaining his rating on TEAM as he sees FY2026 guidance to face similar prudence around macro and execution risk similar to FY2025 guidance. Atlassian expects the total revenue to be in the range of $1.39 billion to $1.40 billion during Q1 FY2026. For the full year 2026, the company anticipates its total revenue to grow around 18% compared to a total revenue of $5.20 billion recorded in FY2025. The cloud and data center revenue growth are expected to be around 21% and 12.5% year-over-year, respectively.
Atlassian Corporation (NASDAQ:TEAM) is a global software company that is integrating AI across its network and assisting companies with AI-powered collaborative software for teamwork.
While we acknowledge the potential of TEAM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TEAM and that has 100x upside potential, check out our report about this cheapest AI stock.
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