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.

4. Accenture plc (NYSE:ACN)

Number of Hedge Fund Holders: 64

Forward P/E: 10.29

On April 27, 2026, Reuters reported that Microsoft is bringing out its Copilot 365 AI assistant to roughly 743,000 Accenture plc (NYSE:ACN) employees. This marks what it calls the biggest enterprise deal for the chatbot as it pushes to convert more users into paid subscriptions. Financial terms were not disclosed in the joint statement.

Reuters reported that Microsoft’s M365 and Copilot platform head Charles Lamanna said expanding support for multiple AI models, including Anthropic and a “Critique” tool that uses one model to check another, is supporting demand. The effort plans to reduce reliance on OpenAI while broadening enterprise use.

Accenture plc (NYSE:ACN)’s CEO Julie Sweet said in a statement that “our teams are already doing higher-value work because of it.” The company said 97% of staff reported Copilot helped complete routine tasks up to 15 times faster, with 53% reporting major productivity gains.

Accenture plc (NYSE:ACN) is a multinational professional services firm that helps corporations, governments, and other organizations develop their digital core, streamline their operations, accelerate revenue growth, and improve citizen services, resulting in concrete value at speed and scale. It operates in three geographical segments: North America, EMEA, and Growth Markets.

3. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 86

Forward P/E: 10.29

On April 20, 2026, CNBC reported that Adobe Inc. (NASDAQ:ADBE)’s Chief Executive Officer, Shantanu Narayen, in an interview, said he plans to step down after nearly two decades leading the company. He framed the decision around strategy execution as artificial intelligence reshapes software. He told CNBC that “it was really important that we got our strategy in place” and that he feels “really good about the strategy” and innovation spanning Firefly models to enterprise tools.

Narayen pointed to quick technological change, telling CNBC that AI will “revolutionize how creativity happens” while expanding opportunities for creative and marketing software. He pushed back on concerns about disruption, stating “the bears have it all wrong,” and acknowledged the need to manage new interfaces and computing modalities.

Scale remains central, as Narayen said Adobe Inc. (NASDAQ:ADBE) now serves 70 billion profiles, processes 35 trillion transactions a day, and reaches about 850 million monthly users across Acrobat, Express, and Creative Cloud.

Adobe Inc. (NASDAQ:ADBE) is a global technology company operating through the following segments: Digital Media, Digital Experience, and Publishing and Advertising.

2. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 101

Forward P/E: 13.39

On May 27, 2026, CNBC reported that Salesforce, Inc. (NYSE:CRM)’s Q1 fiscal 2027 results beat estimates while guiding slightly below expectations. The company had adjusted EPS of $3.88 while revenue was $11.13 billion, growing by 13% year over year. The net income jumped to $2.11 billion from $1.54 billion.

CNBC reported a remaining performance obligation of $67.9 billion, missing the $68.61 billion consensus. The full-year revenue guidance of $45.9 billion to $46.2 billion came in slightly below estimates despite adjusted EPS guidance of $14.06 to $14.12.

Chief Operating and Financial Officer Robin Washington said the outlook shows “continuing challenges in marketing and commerce” and “worsening performance in Tableau bookings and renewals.” He also noted that Informatica contributed to license revenue volatility.

Salesforce, Inc. (NYSE:CRM)’s Agentforce annualized revenue reached $1.2 billion, up 205% year over year, surpassing $1 billion for the first time.

Salesforce, Inc. (NYSE:CRM) develops cloud-based enterprise software for customer relationship management. It provides sales force automation, customer service and support, marketing automation, digital commerce, community management, collaboration, industry-specific solutions, and the Salesforce platform.

1. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 154

Forward P/E: 9.39 

On May 26, 2026, Reuters reported that Micron Technology, Inc. (NASDAQ:MU) briefly surpassed a $1 trillion market value with shares jumping 17.4% to $881.6 after rising as much as 19.3% intraday. The surge came after UBS lifted its price target to $1,625 from $535, the highest among the 46 brokerages covering the firm, as per LSEG data.

The move brings to an end what Reuters described as a “dizzying rally.” The shares climbed more than eightfold in 12 months because of strong earnings and supply constraints, giving it pricing power.

“The need for pure memory has increased rapidly,” Art Hogan told Reuters, noting Micron Technology, Inc. (NASDAQ:MU) “sits at the center” of AI-driven demand.

Reuters said the company’s 2026 high-bandwidth memory supply is already sold out. The next-gen HBM4 chips have entered production, showing tightening capacity as data center investment accelerates.

Micron Technology, Inc. (NASDAQ:MU) is the U.S.’s largest memory chipmaker. It operates in four business units: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit.

READ NEXT: 10 Best Performing Quantum Computing Stocks So Far in 2026 and 10 Best ARK Stocks to Buy Right Now.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.