In this article, we will look at the 5 Best Generative AI Software Stocks to Buy in June. Please visit the 8 Best Generative AI Software Stocks to Buy in June if you’d like to see an extended list and methodology behind it.
5. Cloudflare, Inc. (NYSE:NET)
Potential Upside: 10.31%
Number of Hedge Fund Holders:84
Cloudflare, Inc. (NYSE:NET) is one of the 8 Best Generative AI Software Stocks to Buy in June. On June 15, Investing.com reported that Citizens maintained its Market Outperform rating on Cloudflare with a $270.00 price target, following the company’s Investor Day presentation on June 9.
Earlier on June 11, Truist increased the price target on Cloudflare to $250 from $225 while maintaining a Buy rating on the stock. The analyst sees the company evolving from an edge security and content delivery network provider to a unified platform that covers security, network services, developer tools, and AI-related workloads.
Similarly, UBS also raised its price target on Cloudflare to $250 from $220 following the company’s Investor Day presentation. The analyst maintained a Neutral rating on the stock as it noted the firm’s margin outlook and AI positioning. Additionally, TD Cowen reiterated its Buy rating on Cloudflare with a $265 price target, highlighting the company’s role in securing AI agents through its cloud-native architecture.
Earlier this month, Cloudflare announced the acquisition of JavaScript tooling company VoidZero in a bid to build the future of AI-native web. The company said the acquisition will unify VoidZero’s high-performance tooling into the Cloudflare ecosystem. It added:
“By merging Cloudflare’s global edge network and Workers developer platform with the modern web’s industry-standard toolchain, Cloudflare is creating a frictionless, one-click deployment stack from local code straight to Cloudflare’s global network.”
Cloudflare, Inc. (NYSE:NET) is a global cloud services provider that delivers a broad range of services to businesses. The company’s connectivity cloud delivers a unified platform of cloud-native products and developer tools.
4. Adobe Inc. (NASDAQ:ADBE)
Potential Upside: 21.15%
Number of Hedge Fund Holders: 86
Adobe Inc. (NASDAQ:ADBE) is one of the 8 Best Generative AI Software Stocks to Buy in June. On June 12, TheFly reported that Freedom Broker analyst Egor Tolmachev downgraded Adobe to Hold from Buy, reducing its price target to $250 from $510 following the company’s second-quarter earnings report.
The analyst noted a shift in the quality of the company’s growth during the quarter as the acceleration was acquired rather than organic, adding that the management is deliberately trading near-term subscription revenue for top-of-funnel reach.
Similarly, UBS reduced its price target on Adobe to $225 from $260 while keeping a Neutral rating on the stock due to concerns about pricing power, according to a report by Investing.com. The analyst emphasized that creative AI technology has impaired the company’s pricing power in the down-market and individual customer segment, describing it as a major dent to the company’s narrative.
According to a Wall Street Journal report, Adobe plans to focus on its “freemium” artificial-intelligence offerings to grow its user base and drive adoption of its AI products.
For the second quarter of its fiscal year 2026, Adobe achieved record revenue of $6.62 billion, a 13% increase from the $5.87 billion registered in the same period last year. GAAP net income during the period amounted to $1.71 billion, while non-GAAP net income registered at $2.40 billion.
Adobe Inc. (NASDAQ:ADBE) is a global technology firm that provides creativity and productivity-focused platforms and tools for both businesses and individuals.
3. Salesforce (NYSE:CRM)
Upside Potential: 47.07%
Number of Hedge Fund Holders: 101
Salesforce (NYSE:CRM) is one of the 8 Best Generative AI Software Stocks to Buy in June. On June 15, Salesforce announced that it had forged a definitive agreement for the acquisition of customer agent company Fin, formerly Intercom, for approximately $3.6 billion.
Salesforce said the acquisition will bring Fin’s customer agent platform to companies of all sizes, expanding the company’s ability to deliver autonomous agents across the enterprise. Upon the completion of the transaction, Salesforce and Fin customers will be provided with more ways to deploy AI agents across their customer service operations, with fast time-to-value options. The company said this is especially well-suited for SMB and some commercial organizations that need to launch quickly, integrate with existing systems, and deliver measurable outcomes.
According to a report by TheFly on the same day, Jefferies expressed optimism for the acquisition, noting that it will accelerate AI adoption in Salesforce’s installed base. The analyst noted that 15 M&A deals signed by Salesforce since May 2025 are helping accelerate innovation, as the company looks to reinvent itself amid the AI displacement narratives.
Several analysts reiterated their Buy ratings on Salesforce following the announcement of the acquisition. According to a separate report from Investing.com, Canaccord Genuity maintained its Buy rating and $225 price target on Salesforce on June 15. Similarly, Truist also maintained a Buy rating and $280 price target on the stock.
Based on 55 analyst ratings compiled by CNN, 73% assigned a Buy rating to Salesforce, while 24% assigned a Hold rating. The stock currently has an average price target of $242, a 47.07% upside from the current price of $164.55.
Salesforce (NYSE:CRM) helps organizations become agentic enterprises by integrating humans, agents, apps, and data on a trusted, unified platform to unlock unprecedented growth and innovation.
2. Intuit Inc. (NASDAQ:INTU)
Potential Upside:58.46%
Number of Hedge Fund Holders: 103
Intuit Inc. (NASDAQ:INTU) is one of the 8 Best Generative AI Software Stocks to Buy in June. In a filing to the Securities and Exchange Commission on June 11, Intuit announced that it has raised approximately $1.74 billion from the issuance of senior notes worth $1.75 billion.
The issuance is composed of $750 million 4.950% Senior Notes due 2031 and $1 billion worth of 5.500% Senior Notes due 2036. The company said it intends to use the net proceeds for general corporate purposes, which may include refinancing its $750 million aggregate principal amount of 5.250% Senior Notes due 2026 and its $500 million aggregate principal amount of 1.350% Senior Notes due 2027.
In other news, Goldman Sachs analyst Gabriela Borges earlier downgraded the rating on Intuit to Sell from Neutral on June 2, lowering its price target to $276 from $519, according to a report by TheFly. The analyst said consensus estimates are likely too high for the next three years, noting that the company may have to revise its long-term growth targets downward.
For the third quarter of its fiscal year 2026, Intuit reported a 10% rise in total revenues to $8.6 billion. The company expects revenues of $21.341 billion to $21.374 billion, growth of approximately 13% to 14% for its full fiscal year.
Based on 34 analyst ratings compiled by CNN, Intuit has a median price target of $446.50, a 58.46% upside from the current price of $281.77.
Intuit Inc. (NASDAQ:INTU) is a global financial technology platform. It has approximately 100 million customers worldwide using products such as TurboTax, Credit Karma, QuickBooks, Mailchimp, and Intuit Enterprise Suite.
1. ServiceNow (NYSE:NOW)
Potential Upside: 29.62%
Number of Hedge Fund Holders: 108
ServiceNow (NYSE:NOW) is one of the 8 Best Generative AI Software Stocks to Buy in June. Based on 50 analyst ratings compiled by CNN, 90% assigned a Buy rating to ServiceNow, while 8% assigned a Hold rating. The stock has an average price target of $135, a 29.62% upside from the current price of $104.15.
On June 15, TheFly reported that Benchmark analyst Yi Fu Lee increased the price target on ServiceNow to $130 from $125 while maintaining a Buy rating on the stock.
The analyst expressed optimism for the stock following a fireside chat with the company’s Head of Investor Relations and Market Insights, Darren Yip. Lee said he “walked away feeling bullish on one of the cleanest operating models in the SaaS sector balancing profitable growth.”
Last week, ServiceNow announced the expansion of its collaboration with IBM, which seeks to unlock enterprise data for AI at scale. The expanded partnership combines IBM’s AI, data, and automation capabilities with the ServiceNow AI Platform to help enterprises break through outdated systems and put their data to work for AI.
The two companies will deliver joint solutions that modernize aging systems, extend ServiceNow Workflow Data Fabric with IBM’s enterprise data capabilities, and enable autonomous IT operations so the world’s largest enterprises can unlock the transformative value of agentic AI.
ServiceNow (NYSE:NOW) provides an end-to-end workflow automation platform for digital businesses. The ServiceNow AI Platform integrates with any cloud, any model, and any data source to orchestrate how work flows across the enterprise.
While we acknowledge the potential of NOW 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 NOW and that has 100x upside potential, check out our report about the cheapest AI stock.
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