Investing in artificial intelligence (AI) stocks could be a huge opportunity for investors right now. AI stocks have fallen sharply lately, but they still have a lot of upside potential in the long term as the AI revolution is still in its infancy. Finding a quality AI stock that is down and has room to move higher could potentially lead to significant returns down the road.
One AI stock that could meet that criterion is UiPath (NYSE: PAD). The stock entered trading this week and has fallen nearly 30% since the start of 2026. Could this be one of the best and most underrated AI stocks to buy right now?
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UiPath is involved in robotic process automation and has an automation platform for its customers; it’s the type of company you’d expect to thrive amid an AI boom. Companies are investing heavily in automation and agentic AI, and UiPath’s software should be in high demand.
However, the results do not seem to support this excitement and optimism. The company recently completed its full-year results and for the year ended January 31, sales were $1.6 billion, which was an increase of 13% over the previous year. That doesn’t exactly scream growth. The good news was that at least the company made a profit of $282.3 million (versus a loss of $73.7 million a year ago).
For investors, though, that may not be enough to prove it will be an AI winner.
Hype is one thing, but the results are a completely different story. And unfortunately, UiPath hasn’t provided the numbers needed to prove this is the real deal. The problem is that many companies offer similar automation services, and if the growth rate isn’t picking up, it could be an indication of the level of competition the company currently faces in the market.
Analysts also recently lowered their price targets on the stock as they were unimpressed with UiPath’s performance. Analysts’ consensus price target is just over $14, which suggests a near-term upside of about 20% from the stock’s current price. But if results continue to be disappointing, that price target could drop.
Overall, there’s no compelling case for investing in UiPath stock today. Although sales are down significantly this year, there is a good reason for that as the company’s growth prospects are questionable. And ultimately, I think better growth stocks exist than UiPath.
