In this article, we discuss the 10 Most Oversold AI Stocks to Buy Now.
We are seeing Artificial Intelligence (AI) standing at a fascinating crossroads. Similar to the “productivity paradox” of the PC era, billions are being poured into generative AI by companies. However, meaningful returns are yet to be seen. According to a McKinsey report, roughly 80% of companies are leveraging generative AI with no significant bottom-line impact. Despite the surge in abandoned pilot projects reported by S&P Global, IDC projects a 94% growth in AI spending, taking the total to a whopping $62 billion.
However, this gap between promise and return is common, as new technologies often suffer from a “trough of disillusionment” before taking off, as we saw during the emergence of PCs, the internet, and cloud computing.
Meanwhile, within the technology industry, AI is helping companies achieve 30-40% delivery efficiency gains, potentially doubling over time. Looking ahead, the question “which companies will lead the next era of productivity” entirely depends on whether AI supplements existing models or reshapes them entirely.
From an investor’s point of view, these uncertain times hold opportunities to pick AI-focused companies that are oversold in the market despite long-term potential. Thus, let’s shed light on the 10 Most Oversold AI Stocks to Buy Now.
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Our Methodology
To curate our list of the 10 Most Oversold AI Stocks to Buy Now, we used the Finviz screener to extract a list of AI companies with a Relative Strength Index (RSI) under 40. Next, we also considered the hedge fund sentiment toward these stocks as of Q1 2025, using Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds. Finally, we present our list of the 10 Most Oversold AI Stocks to Buy Now in ascending order based on their RSI.
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. Fiserv, Inc. (NYSE:FI)
Relative Strength Index (RSI): 36.57
Number of Hedge Fund Holders: 72
Fiserv, Inc. (NYSE:FI) is included in our list of the 10 Most Oversold AI Stocks to Buy Now.
On July 29, 2025, Mizuho reduced its price target on Fiserv, Inc. (NYSE:FI) from $194 to $165, maintaining an ‘Outperform’ rating. This price revision follows the company’s second-quarter results, where the company reduced its organic growth guidance from the 10-12% range to 10%. This reduction in growth guidance raised uncertainty about the scalability of its Clover unit.
While Mizuho believes Clover’s $3.5 billion annual revenue target is achievable, the investment firm cautioned that growth will be affected, since past price hikes have already dampened growth. Yet the analyst remains confident in Fiserv, Inc. (NYSE:FI)’s resilient long-term growth, thanks to its strong distribution network and strategic platforms such as Clover, CashFlow Central, and partnerships with ADP.
Fiserv, Inc. (NYSE:FI) serves banking, commerce, merchant acquiring, billing, payments, and point-of-sale segments with its global fintech and payments solutions. It is included in our list of the most oversold stocks.
9. Fair Isaac Corporation (NYSE:FICO)
Relative Strength Index (RSI): 35.20
Number of Hedge Fund Holders: 68
With a year-to-date decline, strong upside potential, and significant hedge fund interest, Fair Isaac Corporation (NYSE:FICO) secures a spot on our list of the 10 Most Oversold AI Stocks to Buy Now.
On August 5, 2025, Goldman Sachs reiterated its ‘Buy’ rating on Fair Isaac Corporation (NYSE:FICO) with a $1,915 price target. The investment firm’s bullish stance follows a non-deal roadshow with the company’s management. The analyst notes that, despite the Federal Housing Finance Agency’s recent decision on lender choice and the expectation that 2026 pricing hikes will follow past trends, the company intends to maintain its mortgage score pricing strategy.
The investment firm also highlighted the company’s strong pricing power, driving Fair Isaac Corporation (NYSE:FICO)’s 16.66% revenue growth in the past year. Moreover, it was reported that no market share loss to VantageScore occurred. Thus, the analyst expects lenders to prefer Classic FICO scores. However, caution is advised if competitors price aggressively.
Fair Isaac Corporation (NYSE:FICO) is a leading analytics and decision management solutions provider, known for its FICO credit scores. It is included in our list of the most oversold stocks.
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