5 Most Undervalued AI Stocks to Buy According to Hedge Funds

In this article, we will take a look at the 5 Most Undervalued AI Stocks to Buy According to Hedge Funds. For a deeper discussion and an extended list, please see the 8 Most Undervalued AI Stocks to Buy According to Hedge Funds.

5. Workday, Inc. (NASDAQ:WDAY)

Number of Hedge Fund Holders: 63

Forward P/E: 12.24

Workday, Inc. (NASDAQ:WDAY) is among the Best Undervalued Stocks.

On May 21, 2026, The Wall Street Journal reported that Workday, Inc. (NASDAQ:WDAY)‘s Chief Executive, Chair, and Co-founder Aneel Bhusri is leading the company through a “re-founding” moment after returning as chief executive in February. He argues AI demands a startup-style reset. Bhusri told the Journal the corporation must “think like a startup again,” describing efforts to rebuild product ownership and accountability.

The Journal reported Bhusri has made an AI task force and consolidated terms around AI agent products, cutting the company’s internal agent count from 50 to about 20 to focus on “the ones that really matter.” Gerrit Kazmaier, Workday’s president and head of product and technology, said the firm plans to release about 15 new agents in 2026. This includes tools for corporate travel and IT service management built on its Sana acquisition.

Bhusri said he has spoken to over 100 customers who are not looking to replace Workday, Inc. (NASDAQ:WDAY)’s HR and finance software, and “If they do, I’d say, ‘Welcome to the swamp.”

Workday, Inc. (NASDAQ:WDAY) develops enterprise cloud applications for finance and human resources. It provides financial management, human capital management, and analytics solutions for businesses, educational institutions, and government bodies.