1. Tyler Technologies, Inc. (NYSE:TYL)
Upside Potential: 43.37%
Number of Hedge Fund Holders: 42
Tyler Technologies, Inc. (NYSE:TYL), which offers strong upside potential, ranks among the overlooked tech stocks to invest in now. A statewide AI rollout in South Carolina is backing the company’s push into government-facing conversational technology with early usage metrics.
On June 30, 2026, Tyler Technologies, Inc. (NYSE:TYL) successfully launched its Resident AI Assistant, named “Bradley,” in South Carolina, giving residents a centralized conversational gateway to state government services. The assistant sources answers directly from verified .gov websites across state agencies. Nathan Hogue, state chief information officer for the South Carolina Department of Administration, said Tyler Technologies, Inc. (NYSE:TYL)’s Bradley gives the state’s more than five million residents “a single, trusted starting point” for information ranging from DMV guidance to court resources and tax assistance, freeing staff to focus on more complex service needs.
Since launching in September 2025, Bradley has answered more than 38,000 questions from over 10,800 unique users, averaging 195 questions resolved per day and peaking at 426 in a single day. The assistant has achieved an 82.2% first-contact resolution rate, operates 24/7 with 15% of interactions occurring on weekends, and supports 54 languages, with about 6% of interactions in non-English languages.
Liz Thomas, president of Tyler’s State & Federal Group, said the Resident AI Assistant for Tyler Technologies, Inc. (NYSE:TYL) was built specifically for government use, with safeguards, transparency and analytics that go beyond a traditional chatbot, helping South Carolina deliver a more responsive and accessible government experience.
Tyler Technologies, Inc. (NYSE:TYL) offers integrated software and technology management solutions for the public sector.
While we acknowledge the potential of TYL 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 TYL and that has 100x upside potential, check out our report about the cheapest AI stock.
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