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.
8. Adobe Inc. (NASDAQ:ADBE)
P/E Ratio: 18.80
No. of Hedge Fund Investors: 111
Analyst Upside: 21.78%
Adobe Inc. (NASDAQ:ADBE) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 26, BofA reiterated its Buy rating on Adobe Inc. stock, keeping the price target at $475.
Bradley Sills remains optimistic about Adobe’s prospects, citing the company’s strategic positioning and strong financial results during Q2 2025. The company achieved record revenue of $5.87 billion, up 11% year-over-year and beating estimates by $73.73 million. The company’s Digital Media segment recorded $4.35 billion in revenue, indicating a 12% year-over-year growth in ARR. Adobe’s AI initiatives, such as Acrobat AI Assistant and Firefly, are massively contributing to revenue, with AI-driven ARR tracking ahead of the $250 million target of 2025.
The analyst believes that Adobe Inc. (NASDAQ:ADBE) is in the early stages of the agentic AI cycle, which is expected to improve its competitive edge in the creative professional market. Adobe’s growth in AI-influenced products will further strengthen its core offerings and expand its market reach. Sills sees Adobe’s commitment to data governance and security to be key for its cloud capabilities and integration with third-party models.
Adobe Inc. (NASDAQ:ADBE) is a technology company that offers creator tools and services to individuals, teams, and enterprises to create, publish, and promote content. Adobe is evolving into an AI-driven company through its generative AI tools.
7. Micron Technology, Inc. (NASDAQ:MU)
P/E Ratio: 10.89
No. of Hedge Fund Investors: 96
Analyst Upside: 24.08%
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 26, Rosenblatt Securities raised the price target on MU from $172 to a Street-high of $200, reiterating a Buy rating on the stock.
Kevin Cassidy from Rosenblatt Securities raised the price target on Micron Technology, Inc. (NASDAQ:MU) following strong Q3 2025 results. The company’s revenue hit a quarterly record of $9.3 billion, up 37% year-over-year, and surpassed consensus by almost $450 million. The strong revenue was driven by ongoing strength in data center markets and robust quarter-over-quarter growth across consumer-facing segments. The company saw a record-high DRAM revenue, with almost 50% sequential growth in HBM sales. Micron’s adjusted gross margin soared to 39% in Q3, while the adjusted earnings of $1.91 surpassed consensus by $0.31.
“The combination of AI applications driving DRAM demand and Micron’s leading power efficiency drove revenue, gross margin, operating margins, and profits well above Street expectations,” said Cassidy. “Outlook is for more of the same. With DRAM wafer capacity expansion over 18 months away, we see this cycle driving Micron’s income model to all-time highs. We continue recommending MU shares for the relatively low valuation, 12x fP/E, strong balance sheet, expanding margins, and earnings leverage.”
Micron Technology now expects Q4 FY2025 to post similar results with an equally upbeat outlook. The revenue for the ongoing quarter is expected to be around $10.4 billion and $11 billion.
Micron Technology, Inc. (NASDAQ:MU) is a leading player in the AI industry as the company develops high-performance memory and storage solutions, such as DRAM and NAND. These are important devices used for running and training AI models across data centers, consumer electronics, and edge devices.
6. Shutterstock, Inc. (NYSE:SSTK)
P/E Ratio: 8.02
No. of Hedge Fund Investors: 22
Analyst Upside: 24.38%
Shutterstock, Inc. (NYSE:SSTK) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 16, Shutterstock, Inc. (NYSE:SSTK) unveiled its bold new visual identity and reintroduced itself as a brand with a suite of innovative, AI-powered offerings designed to operate businesses, creatives, and brand leaders.
Shutterstock, Inc. is redefining its business with strategic evolution as a family of brands providing scalable creative and GenAI solutions to help its customers. The company is solidifying its position as a premier partner for businesses to achieve real business impact through its new AI-backed offerings. Shutterstock’s latest impact-focused offerings include unlimited download subscriptions, generative AI pro, AI data licensing, GIPHY Ads, and scalable, end-to-end creative content production.
“The future of storytelling demands speed and intelligence to compete in a highly saturated market, and businesses that effectively solve for this outperform competitors across every meaningful metric, from customer engagement to revenue growth and more. Our new identity is a symbol of the investments we’ve made in scalable AI and data-driven content solutions that meet our customers where they are so they can tackle their business challenges head-on,” said Aimee Egan, Chief Enterprise Officer at Shutterstock.
Shutterstock, Inc. (NYSE:SSTK) offers a global creative platform for connecting brands and businesses to quality content. The company is transforming its operations with a diverse collection of high-quality licensable assets, data, and AI solutions.
5. Alibaba Group Holding Limited (NYSE:BABA)
P/E Ratio: 11.71
No. of Hedge Fund Investors: 125
Analyst Upside: 45.73%
Alibaba Group Holding Limited (NYSE:BABA) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 30, Jefferies lowered its price target on Alibaba Group Holding Limited stock from $156 to $153, maintaining its Buy rating on the stock.
Thomas Chong from Jefferies slightly reduced the price target on BABA, citing increased investment in food delivery and logistics. Chong remains positive about Alibaba and said that its on-demand services, including Eleme and Taobao Instant Commerce, managed over 60 million daily orders in late June. This remarkable development could help Alibaba drive user growth and engagement, Chong mentioned.
Alibaba has lately been investing in AI, and analysts see a major upside for the company, backed by its AI investments. Recently, Alibaba Group Holding Limited (NYSE:BABA) launched a new AI model for image generation called Qwen VLo. The model builds on the earlier Qwen 2.5 vision language system and offers advanced features for generating and editing images. The latest image generation AI model supports both text-to-image and image-to-image generation.
Alibaba Group Holding Limited (NYSE:BABA) is a leading Chinese e-commerce platform. It is a diversified company with a major share in cloud services and a growing presence in Gen AI.
4. Verint Systems Inc. (NASDAQ:VRNT)
P/E Ratio: 6.10
No. of Hedge Fund Investors: 19
Analyst Upside: 58.69%
Verint Systems Inc. (NASDAQ:VRNT) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 5, Jefferies increased its price target on Verint Systems Inc. (NASDAQ:VRNT) stock from $19 to $23, keeping its Hold rating on the shares.
Samad Samana from Jefferies raised the price target on VRNT following strong Q1 FY2026 results, especially citing the 7% revenue beat and material earnings upside driven by a pull-forward of unbundled software-as-a-service deals.
The firm says Verint’s fiscal 2026 revenue and earnings guides were unchanged, and Q1 was guided below consensus. Investor attention will be on whether the steeper implied second half of the year revenue ramp is achievable given prior unbundled misses, contends Jefferies.
Verint Systems Inc. (NASDAQ:VRNT) offers customer engagement solutions. The company offers AI-powered bots to improve AI business outcomes across the enterprise. Verint’s Da Vinci AI tool, which is embedded in its cloud platform, powers all applications running in the platform with advanced AI and automation.
3. Stagwell Inc. (NASDAQ:STGW)
P/E Ratio: 12.16
No. of Hedge Fund Investors: 19
Analyst Upside: 91.47%
Stagwell Inc. (NASDAQ:STGW) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 18, Stagwell’s leading strategy and communications advisory firm in the MENA region, Consulum, announced the launch of Maydan Sports.
Maydan Sports is a global sports engagement collective designed to assist firms across the MENA region to build global recognition and deliver domestic impact through sport. Consulum, along with Stagwell agencies, will support the launch of Maydan Sports to introduce world-class marketing, immersive technology, and regional expertise to elevate the region’s global sports presence. The collective will support clubs, brands, public bodies, and federations to enhance the impact of sports in the MENA region.
“With the world’s eyes firmly on the region, the potential for all stakeholders – from governments and brands to local youth and communities – is immense. Maydan Sports is designed to drive this momentum and ensure our clients’ sporting agendas deliver enduring impact,” said Dr. Craig Wilkie, Managing Director of Maydan Sports.
The MENA region holds great potential with major support events ahead, such as the FIFA World Cup, Esports Olympics, Formula 1 races, and Asian Football Cups, among others.
Stagwell Inc. (NASDAQ:STGW) is a digital-first marketing company. It operates through three segments, including, Integrated Agencies Network, Brand Performance Network, and the Communications Network. Stagwell uses AI to categorize content, level it up to brand standards, and make it more effective.
2. Bit Digital, Inc. (NASDAQ:BTBT)
P/E Ratio: 7.76
No. of Hedge Fund Investors: 6
Analyst Upside: 159.74%
Bit Digital, Inc. (NASDAQ:BTBT) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 25, Bit Digital, Inc. (NASDAQ:BTBT) announced that it is becoming a pure-play Ethereum (ETH) staking and treasury company.
Bit Digital initiated a strategic transition to ETH staking. The company started accumulating ETH and operating staking infrastructure in 2022 and has increased its holdings over time. The company held nearly 24,434.2 ETH and 417.6 BTC, as of March 31, 2025. These assets were valued at almost $44.6 million and $34.5 million, respectively. The company is planning to convert its Bitcoin holdings into Ethereum over time.
With the decision to transition into an ETH staking firm, Bit Digital has initiated a strategic alternative process for BTC mining operations. This process is expected to result in their sale or wind-down, with net proceeds to be reinvested into ETH. The company has also signed an underwriting agreement with B. Riley Securities for a public offering of 75 million ordinary shares at $1.90 per share. The company expects to raise approximately $162.9 million if the option for additional shares is exercised. The proceeds will be dedicated to ETH purchasing.
Bit Digital, Inc. (NASDAQ:BTBT) is a digital asset production company which is now targeting Ethereum staking. The company has operations in high-performance computing and artificial intelligence, becoming a significant provider of AI infrastructure.
1. HIVE Digital Technologies Ltd. (NASDAQ:HIVE)
P/E Ratio: 15.65
No. of Hedge Fund Investors: 7
Analyst Upside: 189.86%
HIVE Digital Technologies Ltd. (NASDAQ:HIVE) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 25, HIVE Digital Technologies Ltd. (NASDAQ:HIVE) reported its FY2025 results, posting revenue of $115.3 million as AI cloud earnings almost tripled.
HIVE Digital Technologies Ltd.’s HPC and AI cloud revenue soared to $10.1 million from $3.4 million a year ago, growing three times year-over-year. The increase in this segment was mainly due to the expansion of the GPU fleet, earning AI compute revenue. The robust demand for high-performing computing markets continues to push sales for HIVE. Due to high demand, the company has scaled its GPU fleet to 5,000 units under its BUZZ HPC business.
HIVE Digital Technologies recently announced the purchase of a facility with a total installed capacity of 7.2 megawatts in Toronto to support its HBC infrastructure. This facility will accelerate the development of a sovereign Canadian AI ecosystem through HIVE’s BUZZ HPC business.
HIVE Digital Technologies Ltd. (NASDAQ:HIVE) is a technology company advancing in sustainable blockchain and AI infrastructure powered by green energy.
While we acknowledge the potential of HIVE 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 HIVE and that has 100x upside potential, check out our report about this cheapest AI stock.
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