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.
Photo by Possessed Photography on Unsplash
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.
8. Xerox Holdings Corporation (NASDAQ:XRX)
Relative Strength Index (RSI): 34.90
Number of Hedge Fund Holders: 29
Xerox Holdings Corporation (NASDAQ:XRX) is included in our list of the 10 Most Oversold AI Stocks to Buy Now.
On August 18, 2025, Citi initiated coverage on Xerox Holdings Corporation (NASDAQ:XRX) with a ‘Hold’ rating. This rating comes amid the company’s ongoing efforts to navigate restructuring and cost-cutting measures, following continuous declines in its core print business. Meanwhile, its acquisitions, including ITsavvy and the integration of Lexmark, hold strong potential. However, revenue growth from these acquisitions has yet to materialize, softening free cash flow expectations.
At the same time, the analyst highlighted Xerox Holdings Corporation (NASDAQ:XRX)’s execution risks, which remain heightened following the recent Chief Operating Officer (COO) departure. Thus, Citi believes clear progress in strategic initiatives is needed.
Xerox Holdings Corporation (NASDAQ:XRX) is a known leader in office and production technology and related solutions. It is included in our list of the most oversold stocks.
7. Salesforce, Inc. (NYSE:CRM)
Relative Strength Index (RSI): 34.81
Number of Hedge Fund Holders: 140
Salesforce, Inc. (NYSE:CRM) is included in our list of the 10 Most Oversold AI Stocks to Buy Now.
On August 18, 2025, Salesforce, Inc. (NYSE:CRM) signed a definitive agreement to acquire Regrello, an AI-native platform that transforms business data into agile, agentic workflows. This acquisition is expected to close in the company’s third fiscal quarter of 2026. The deal, which will be funded with cash on hand, will not affect CRM’s capital return program or fiscal 2026 guidance.
With this acquisition, Salesforce, Inc. (NYSE:CRM) enables businesses to automate manual processes, boost collaboration, and accelerate decision-making by integrating Regrello with Agentforce and Slack. The company sees the move as a critical step toward building the “agentic enterprise,” allowing humans and AI to work seamlessly together.
Salesforce, Inc. (NYSE:CRM), headquartered in San Francisco, California, is a cloud-based software company. It is included in our list of the most oversold stocks.
6. HubSpot, Inc. (NYSE:HUBS)
Relative Strength Index (RSI): 33.75
Number of Hedge Fund Holders: 61
With a year-to-date decline, strong upside potential, and significant hedge fund interest, HubSpot, Inc. (NYSE:HUBS) secures a spot on our list of the 10 Most Oversold AI Stocks to Buy Now.
On August 7, 2025, Macquarie reduced its price target on HubSpot, Inc. (NYSE:HUBS) from $730 to $660, maintaining an ‘Outperform’ rating. The price revision is driven by macroeconomic uncertainty. At the same time, the analyst acknowledged the company’s strong Q2 results.
During the quarter, HubSpot, Inc. (NYSE:HUBS) recorded $761 million in revenue, an increase of 18% year-over-year in constant currency. Revenue exceeded estimates by $22 million, thanks to strong up-market and longer-term deals. Meanwhile, the company recorded 20% billings growth, increased NRR to 103%, maintained steady gross margins at 84.55%, and delivered a 17% operating margin.
Looking ahead, HubSpot, Inc. (NYSE:HUBS) raised its full-year guidance, expecting further NRR gains in Q4 from seat expansions and pricing changes.
With its AI-powered customer platform, HubSpot, Inc. (NYSE:HUBS) integrates marketing, sales, and customer service solutions into a single solution. It is included in our list of the most oversold stocks.
5. Snap Inc. (NYSE:SNAP)
Relative Strength Index (RSI): 33.49
Number of Hedge Fund Holders: 39
Snap Inc. (NYSE:SNAP) is included in our list of the 10 Most Oversold AI Stocks to Buy Now.
On August 11, 2025, Freedom Broker upgraded Snap Inc. (NYSE:SNAP) from ‘Hold’ to ‘Buy’, while reducing its price target from $10 to $9. This update follows the company’s weaker-than-expected Q2 2025 results. During the quarter, a 13.18% year-over-year revenue growth was recorded, which fell short of forecasts. Meanwhile, ad platform disruptions impacted monetization and direct response advertising, resulting in lower profitability.
While Snap Inc. (NYSE:SNAP) recently fell to near a 52-week low, the analyst remains confident, thanks to the company’s strong balance sheet, with liquid assets covering short-term obligations nearly four times over. Meanwhile, the company’s Q3 revenue guidance met analyst expectations, and its adjusted EBITDA outlook surpassed expectations.
Snap Inc. (NYSE:SNAP) is known for its products like Snapchat, Lens Studio for augmented reality, and AR glasses, Spectacles. It is included in our list of the most oversold stocks.
4. Fortinet, Inc. (NASDAQ:FTNT)
Relative Strength Index (RSI): 33.41
Number of Hedge Fund Holders: 62
Fortinet, Inc. (NASDAQ:FTNT) is included in our list of the 10 Most Oversold AI Stocks to Buy Now.
On August 15, 2025, Cantor Fitzgerald maintained its ‘Neutral’ rating on Fortinet, Inc. (NASDAQ:FTNT) with an $87 price target. This follows the company’s strong second-quarter results. During the quarter, large enterprise demand fueled growth in product sales and billings. However, subscription revenue slowed in Q2, accompanied by a reduction in services guidance.
Furthermore, Cantor Fitzgerald highlighted Fortinet, Inc. (NASDAQ:FTNT)’s 2026 product refresh cycle, which is already 40-50% complete. This supports the short-term upgrade demand for the company. While the analyst highlighted momentum in the company’s SecOps and SASE segments, challenges in converting service revenue and in zero-trust adoption were also noted.
Fortinet, Inc. (NASDAQ:FTNT), a cybersecurity company, develops and markets security solutions like firewalls, endpoint security, and intrusion detection systems. It is included in our list of the most oversold stocks.
3. Fidelity National Information Services, Inc. (NYSE:FIS)
Relative Strength Index (RSI): 32.47
Number of Hedge Fund Holders: 56
Fidelity National Information Services, Inc. (NYSE:FIS) is included in our list of the 10 Most Oversold AI Stocks to Buy Now.
On August 14, 2025, Fidelity National Information Services, Inc. (NYSE:FIS) launched its Investor Services Suite. The end-to-end platform is designed to modernize investor servicing for fund managers. This launch comes amid rising regulatory scrutiny and operational complexity in the alternative assets market, projected to surpass $20 trillion this year.
With this platform, Fidelity National Information Services, Inc. (NYSE:FIS) offers digital onboarding, customization, AML and KYC processes, advanced compliance across jurisdictions, and tools for efficient cash management and fee calculation. Furthermore, this move automates the investor lifecycle, boosting transparency, streamlining operations, and enhancing client engagement.
Matt Stauffer, SVP, group executive at FIS, stated:
“Managing investor servicing processes has long been a pain point for fund managers and administrators, especially given increasing regulatory demands, cost pressures and client expectations for personalized services. By enabling greater levels of automation, financial institutions can streamline their investor servicing lifecycle and position themselves for long-term success in a highly variable environment.”
Fidelity National Information Services, Inc. (NYSE:FIS), a financial technology company, delivers services across payments, banking, and investment services globally. It is included in our list of the most oversold stocks.
2. Alight, Inc. (NYSE:ALIT)
Relative Strength Index (RSI): 27.08
Number of Hedge Fund Holders: 41
Alight, Inc. (NYSE:ALIT) is included in our list of the 10 Most Oversold AI Stocks to Buy Now.
On August 6, 2025, Needham reduced its price target on Alight, Inc. (NYSE:ALIT) from $8 to $6, maintaining a ‘Buy’ rating. This price revision follows the company’s Q2 results. For the quarter, its revenue and EPS surpassed expectations, thanks to strong recurring revenue growth and disciplined expense management. However, the company reduced its FY2025 revenue guidance due to lengthening deal cycles. At the same time, EBITDA, EPS, and free cash flow targets were reaffirmed.
Meanwhile, on the same day, DA Davidson maintained its ‘Buy’ rating on Alight, Inc. (NYSE:ALIT) with a $10 price target. The company’s results were stronger than analysts’ estimates, reinforcing its bullish stance.
Alight, Inc. (NYSE:ALIT), a U.S.-based IT and consulting company, offers cloud systems, outsourcing, and HR-related advisory services. It is included in our list of the most oversold stocks.
1. Sabre Corporation (NASDAQ:SABR)
Relative Strength Index (RSI): 21.75
Number of Hedge Fund Holders: 32
Sabre Corporation (NASDAQ:SABR) is included in our list of the 10 Most Oversold AI Stocks to Buy Now.
On August 11, 2025, Bernstein upgraded Sabre Corporation (NASDAQ:SABR) from ‘Market Perform’ to ‘Outperform’, reducing its price target from $4 to $3. The target reduction reflects the 38% single-day decline following disappointing quarterly results. However, the investment firm remains bullish on the company, dismissing the speculation that the company’s Global Distribution System (GDS) business is structurally broken. Looking ahead, the analyst expects stabilization in SABR’s booking growth, with potential acceleration in 2026 from agency migrations.
Meanwhile, Bernstein highlighted the company’s Passenger Service System contracts, which remain secure, with major clients like American and LATAM airlines locked in until the mid-2030s. Sabre Corporation (NASDAQ:SABR)’s lack of major debt maturities until 2027 further stabilizes its short-term growth. The analyst projects a return to profitability this year, forecasting EPS of $0.14, driven by anticipated industry-wide GDS volume growth.
Sabre Corporation (NASDAQ:SABR) leverages AI and cloud technology to enhance travel intelligence, predicting disruptions and personalizing travel experiences. It is included in our list of the most oversold stocks.
While we acknowledge the potential of SABR 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 SABR and that has 100x upside potential, check out our report about this cheapest AI stock.
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