In this piece, we discuss the 8 Most Oversold AI Stocks to Buy According to Analysts.
Big Tech’s latest earnings season has given the AI trade a boost in confidence.
As of May 21, 2026, results from all seven members of the Magnificent Seven, including Nvidia, Alphabet, Apple, Microsoft, Amazon, Meta Platforms, and Tesla, are in, and the numbers were enough to keep investors engaged despite disruption in oil markets weighing on the broader economic outlook.
NVIDIA stood out. Its sales continued to surge on demand for AI infrastructure, solidifying its position as the world’s biggest company by market value. Revenue growth across the group, however, remains uneven, with others expanding at a steadier pace, Reuters reported.
To fund their AI ambitions, the Magnificent Seven have been turning to bond markets at a record pace. Debt sales from the group have already hit $134 billion so far this year, compared with $87.5 billion for all of 2025, according to Dealogic data. Alphabet, Amazon, and Meta have led that borrowing surge, driven by data center buildout.
Earnings growth for the group is expected to stabilize heading into 2027, though it is still forecast to outpace the broader S&P 500, according to LSEG’s head of earnings research, Tajinder Dhillon. Meanwhile, capital spending across S&P 500 companies is forecast to grow 33% in 2026, versus just a 3% rise in buybacks, according to Goldman data. That projection raises questions about how much cash will remain available for shareholder returns.
Against that backdrop, some AI names have pulled back sharply, creating potential entry points for investors willing to look past near-term noise.
Photo by Maximalfocus on Unsplash
Our Methodology
To curate our list for this article, we scanned across financial media and screener to identify AI stocks with an RSI below 40 and upside potential greater than 20%. Our list also includes stocks that show bearish momentum rather than being fully oversold. We ranked the final list in ascending order based on their upside potential.
Note: All data is extracted as of May 19, 2026.
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8. Tempus AI, Inc. (NASDAQ:TEM)
Trading with an implied upside of 60.5% and an RSI of 34.6, Tempus AI, Inc. (NASDAQ:TEM) has emerged as a notable oversold play in the AI sector.
In a span of a week, Tempus AI, Inc. (NASDAQ:TEM) made two announcements that add to its growing pipeline of clinical and pharma partnerships.
The freshest update came on May 21, 2026, when Tempus AI, Inc. (NASDAQ:TEM) launched the ArteraAI Prostate Test for metastatic hormone-sensitive prostate cancer (mHSPC). The CLIA-certified and CAP-accredited prognostic test is the first externally developed digital pathology algorithm made clinically available through the Tempus ecosystem.
It works by analyzing a patient’s clinical information and histopathology biopsy image to extract a personalized risk estimate of prostate cancer-specific mortality. Tempus AI, Inc. (NASDAQ:TEM) said the test fills a gap for approximately 25,000 patients newly diagnosed with metastatic prostate cancer in the U.S. each year. Clinicians can order it as an add-on to Tempus’ solid tumor portfolio across all ordering modalities. Additionally, its output can be paired with Tempus’ next-generation sequencing (NGS) assay results to provide a fuller picture of a patient’s disease.
That came a week after Tempus AI, Inc. (NASDAQ:TEM) announced an expanded collaboration with Bristol Myers Squibb on May 14, 2026.
The two companies said they would apply AI and multimodal real-world data across five initial clinical trial programs, with the goal of improving what they called the Probability of Technical and Regulatory Success. Using Lens, Tempus’ AI-enabled analytical platform, the partners are targeting programs in lung, colon, and prostate cancers, as well as Alzheimer’s Disease.
The initiative builds on an earlier arrangement that deployed Tempus AI, Inc. (NASDAQ:TEM)’s Next Pathways program across 13 community-based health systems for patients with advanced non-small cell lung cancer (aNSCLC).
Tempus AI, Inc. (NASDAQ:TEM) is a healthcare technology company that uses artificial intelligence to advance precision medicine.
7. AeroVironment, Inc. (NASDAQ:AVAV)
Trading with an implied upside of 88.8% and an RSI of 37.7, AeroVironment, Inc. (NASDAQ:AVAV) has emerged as a notable oversold play in the AI sector.
AeroVironment, Inc. (NASDAQ: AVAV) is increasingly positioning itself as a software-driven defense technology player, expanding its AV Halo platform while securing new Pentagon contracts and next-generation counter-drone capabilities.
AeroVironment, Inc. (NASDAQ:AVAV) expanded its AV Halo software platform on May 19, 2026, with two new additions, AV Halo INSTINCT and AV Halo DETECT. The launch, announced at SOF Week in Tampa, added AV Halo INSTINCT, a next-generation autonomy framework for multi-platform uncrewed systems and AV Halo DETECT, an advanced radio frequency sensing and security solution for contested and denied environments.
AeroVironment, Inc. (NASDAQ:AVAV) said INSTINCT is built for distributed, collaborative mission execution across Intelligence, Surveillance, and Reconnaissance, loitering, counter-Uncrewed Aircraft System, and precision strike profiles, while DETECT uses AI-driven RF detection for automatic threat identification and location. Both capabilities are available today and can be tailored to specific platforms, sensors, and operational environments.
That software push followed a separate May 12 announcement, when AeroVironment, Inc. (NASDAQ:AVAV) secured a three-year, $43 million Department of War contract to integrate its PANTHER phased array antenna system on DOW SkyRange platforms for hypersonic telemetry. The program is designed to support multi-band, multi-target tracking and provide a mobile, air-based solution for long-range missile testing.
Earlier in May, AeroVironment, Inc. (NASDAQ:AVAV)’s LOCUST high-energy laser system also demonstrated safe, controlled engagement of drone targets at White Sands Missile Range in coordination with the Department of War and the Federal Aviation Administration (FAA).
That backdrop followed AeroVironment, Inc. (NASDAQ:AVAV)’s fiscal third-quarter results released March 10, when revenue rose 143% year-over-year to $408.0 million, while the funded backlog stood at $1.1 billion as of January 31, 2026.
AeroVironment, Inc. (NASDAQ:AVAV) designs and manufactures unmanned aerial vehicles, ground robotic systems, and loitering munitions.
6. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
With an upside potential of 99.1% and a relative strength index (RSI) of 33.8, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) stands out as one of the most oversold AI stocks in the market. While analyst support remains strong, the stock is currently lacking investor confidence.
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) fell to a new 52-week low of $2.85 on May 19, 2026. That placed fresh pressure on the stock, even as the company continues to advance its AI-native drug discovery platform and pipeline across oncology, rare disease, neuroscience, immunology, and other therapeutic areas. The stock is down nearly 30% year-to-date.
Amid the share price pressure, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) reported first-quarter 2026 results and business updates on May 6, 2026.
Revenue came in at $6.5 million, compared with $14.7 million in the prior-year period, while net loss narrowed to $117.5 million from $202.5 million. The company ended the quarter with $665.2 million in cash, cash equivalents, and restricted cash, and reiterated guidance for less than $390 million in 2026 operational cash burn, supporting runway into early 2028 without additional financing.
Beyond the numbers, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) highlighted progress across several programs.
REC-1245 showed early safety and pharmacokinetic data in solid tumors, with no dose-limiting toxicities observed to date. REC-4881 showed Phase 2 efficacy signals in familial adenomatous polyposis, with FDA engagement underway and an update expected in the second half of 2026.
The company also dosed the first patient in a Phase 1 study of REC-4539, an AI-designed LSD1 inhibitor. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) said its OS platform continues to integrate AI across multimodal biology, precision design, and clinical development, supporting its end-to-end approach to drug discovery and development.
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a clinical-stage biotechnology company focused on using AI, automation, and data science to industrialize drug discovery.
While we acknowledge the potential of RXRX 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 RXRX and that has 100x upside potential, check out our report about the cheapest AI stock.
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