Wall Street Analysts Back Amdocs (DOX) with Strong Buy Ratings Amid AI-Driven Growth

Amdocs Limited (NASDAQ:DOX) is one of the best affordable AI stocks to buy now. Amdocs Limited (NASDAQ:DOX) commands a consensus strong Buy rating on Wall Street. The average price target on the stock is $99, implying 24.76% upside potential from current levels.

Amdocs Limited ( DOX) Investing in AI TO Strengthen Service Delivery in Telecommunications

On November 18, at Wells Fargo’s 9th Annual TMT Summit, the company reiterated its focus on leveraging artificial intelligence and cloud technologies to enhance customer experience. Consequently, the company is investing in AI and cloud technologies to improve its services and offerings in the telecommunications sector.

It’s also focusing on improving customer service KPIs through its Amaze platform. Amdocs has already achieved 40% -50% improvements in call center KPIs with its Amaze platform. It’s also developing Horizon Two to modernize customer systems using a cognitive core and generative AI.

The company has already inked strategic partnerships with tech giants Nvidia, AWS, and Microsoft, which are expected to drive innovation. It is to leverage Nvidia’s NIMS infrastructure for agentic capabilities, as it also invests in R&D and strategic partnerships to strengthen its competitive edge.

Additionally, it is positioning itself to capitalize on cloud migration as cloud-related businesses grow at double-digit rates. The company is to focus on helping customers migrate workloads to public clouds such as AWS, Azure, and GCP.

On November 18, Bank of America analyst Tal Liani reiterated his Buy rating on Amdocs and set a price target of $97, pointing to the company’s solid competitive position and long-term growth prospects, even as its FY26 guidance came in softer than expected. Liani emphasized the strength of Amdocs’ core operations and its continued work with T-Mobile during the carrier’s system transition. He also referenced several sizable contracts in the pipeline that are expected to support revenue growth in the back half of FY26. Additionally, Liani noted that the company’s decision to move away from lower-margin activities should help improve profitability and support sustainable growth over time.

Amdocs Limited (NASDAQ:DOX) is a software and Services Company that uses AI, especially Generative AI (GenAI), to help telecom and media companies automate operations, create new services, and improve customer experiences through its amAIz platform. It also focuses on data-driven insights, intelligent workflows, and secure AI deployment for network optimization.

While we acknowledge the potential of Amdocs Limited (NASDAQ:DOX) as an investment, 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 DOX and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.