In this article, we will take a look at the 10 Most Undervalued AI Stocks to Buy According to Analysts.
The Artificial Intelligence (AI) industry continues to thrive, with technology companies investing massively in AI infrastructure. Currently, AI is being utilized by companies to enhance their existing operations through high-profile AI applications, including robotics and virtual assistants.
Generative AI is advancing, and the next stage of GenAI is AI agents or agentic AI. This technology will help AI perform complete tasks without being prompted, such as automated customer service agents.
According to research by S&P Global, the GenAI market was valued at approximately $16 billion in 2024 and is expected to reach $85 billion by 2029, growing at a CAGR of 40% between 2024 and 2029. The U.S. remains the largest market for GenAI, with 63% of 2024 revenue attributed to AI providers based in North America. Almost 56% of GenAI vendors are headquartered in the U.S., while China is catching up in this segment. S&P Global’s research projects the GenAI vendors to grow at a 53% CAGR for Asia-Pacific, significantly exceeding the 34% growth forecast for North American companies.
With these trends in view, let’s take a look at the 10 Most Undervalued AI Stocks to Buy According to Analysts.
A scientist at a computer station, surrounded by a neural network of artificial intelligence code.
Our Methodology
To compile the list of the 10 most undervalued AI stocks to buy according to analysts, we used different online sources to gather the list of companies involved in AI. We have shortlisted companies that are trading below the S&P 500’s forward P/E ratio of 22, as per The Wall Street Journal. We listed the 10 most undervalued AI stocks based on the analyst upside potential for each stock from CNN and ranked them in ascending order of the analyst upside. We also mentioned the number of hedge funds holding each stock, and the hedge fund data is taken from Insider Monkey’s database, updated as of Q1 2025. Please note that the data was collected on July 1.
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 Most Undervalued AI Stocks to Buy According to Analysts
10. Dell Technologies Inc. (NYSE:DELL)
P/E Ratio: 13.09
No. of Hedge Fund Investors: 63
Analyst Upside: 15.01%
Dell Technologies Inc. (NYSE:DELL) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 19, Dell Technologies Inc. (NYSE:DELL) announced its partnership with Lowe’s Companies Inc. to help the home improvement firm transform customer and associate experiences through AI and PC technology solutions.
Dell Technologies will assist Lowe in improving shopping capabilities and store management. Through the Dell AI Factory with Nvidia, Lowe will be equipping its 1,700 stores and corporate offices with Dell PCs and devices to support seamless operations.
“For 40 years, Dell Technologies has championed transformative innovation. Through our advanced AI solutions and a comprehensive IT ecosystem, we’re helping Lowe’s redefine retail experiences. Together, we’re turning ideas into tangible progress, enhancing both operations and customer engagement like never before,” said John Roese, global chief technology officer and chief AI officer, at Dell Technologies.
Lowe will be transforming its operations by setting the foundation for powerful AI solutions. Using Dell’s PowerEdge XE8640 server and Nvidia’s accelerated computing and AI software, Lowe will innovate multiple areas, including computer vision, data processing at the edge, and data center optimization.
Dell Technologies Inc. (NYSE:DELL), historically a major PC and computer hardware manufacturer, is now a critical player in the AI industry. Dell has become an AI infrastructure and solutions powerhouse, enabling its customers to train, manage, and deploy AI systems at scale.
9. NICE Ltd. (NASDAQ:NICE)
P/E Ratio: 13.35
No. of Hedge Fund Investors: 23
Analyst Upside: 19.26%
NICE Ltd. (NASDAQ:NICE) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On July 1, NICE Ltd. (NASDAQ:NICE) announced that TalkTalk will be using NICE’s AI-powered customer service automation platform, CXone Mpower, to transform its connectivity business.
TalkTalk, one of the U.K.’s largest connectivity providers, will be using CXone Mpower to move one step forward in its mission to become the country’s most recommended Wi-Fi provider. NICE’s CXone Mpower will enable TalkTalk to combine multiple existing operating systems into one powerful, unified AI platform. The platform will empower the U.K.-based WiFi provider with faster response times, more accurate resolutions, and a seamless experience for customers.
CXone Mpower will become part of a broader strategy for TalkTalk to adopt innovative and flexible technologies to simplify its operating platform and provide unique offerings to customers. Through built-in AI technology, NICE’s AI platform will equip TalkTalk’s operating system with intelligent automated writing tools and come up with the most relevant answers in real time. The technological advancement will reduce the need for manual interventions and allow agents to focus on customers during conversations.
NICE Ltd. (NASDAQ:NICE), along with its subsidiaries, provides cloud platforms for AI-driven business solutions. It integrates AI and ML in its core offerings, such as customer experience, workforce optimization solutions, and contact centers.
