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Pegasystems Inc. (PEGA): Bares Capital Likes This Software Firm

We just covered the 10 Best Small-Cap Value Stocks to Buy According to Bares Capital and Pegasystems Inc. (NASDAQ:PEGA) ranks 1st on this list.

Pegasystems Inc. (NASDAQ:PEGA) has been a constant feature in the 13F portfolio of Bares Capital since the third quarter of 2019. Back then, this position comprised just under a million shares. In the coming quarters, the fund started loading up on the stock. By the end of 2023, the fund owned more than 11.7 million shares in the company. Since then, Bares has been trimming the position. Filings for the third quarter of 2025 show that the fund owned 3.3 million shares in the firm, down close to 5% compared to filings for the previous quarter. The company develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific.

Pegasystems Inc. (NASDAQ:PEGA) is being viewed as a pure-play leader in the shift toward autonomous enterprise orchestration. While the company had a mixed Q1 2026 earnings report, professional investors are looking past short-term revenue noise and focusing on the rapid adoption of its AI-native Blueprint architecture. There is a lot of interest around Pega Blueprint, an AI-powered design tool released earlier this year. In the Q1 2026 investor presentation, management revealed that Blueprint has significantly shortened sales cycles and increased the pipeline for new customer wins. Funds see this as a solution to one of Pegasystems’ historical weaknesses, the long implementation time of its software. By automating the application design process with GenAI, Pega is becoming more agile.

While we acknowledge the risk and potential of PEGA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PEGA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 14 Best Defensive Stocks to Invest In Now and 14 Best Low Risk High Growth Stocks to Buy Right Now.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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