HomeFinance1 Under-the-Radar AI Stock With Explosive Growth Potential

1 Under-the-Radar AI Stock With Explosive Growth Potential

This stock can help you profit from the growing adoption of agentic artificial intelligence (AI).

UiPath (PATH +0.71%) shares could be poised for a rebound in 2026. The stock price is down by more than 80% from its all-time highs over the past few years, yet the company is emerging as a leader in agentic AI — a form of artificial intelligence (AI) that can perform more complex tasks than a standard chatbot.

This market is set to explode over the next five years, giving investors who buy shares at these discounted prices a chance to earn substantial returns.

UiPath logo on a wall.

Image source: Getty Images.

Customer demand is strong. UiPath is now orchestrating over 365,000 processes on its agentic AI platform. It’s working with hundreds of companies, and these clients are sticking with UiPath. The company has a 98% gross retention rate, meaning very few customers stop using the platform.

Management is executing on the business end. Operating profit is improving, with the company generating an adjusted operating margin of 21% in the third quarter. Improving profitability could lead to a valuation rerating for the stock.

UiPath Stock Quote

Today’s Change

(0.71%) $0.09

Current Price

$12.68

The growth opportunity in agentic AI is massive. This is where AI shifts from giving simple answers to acting on user instructions by completing a series of tasks — all without human intervention. Mordor Intelligence projects the agentic AI market to grow from about $10 billion in 2026 to $57 billion by 2031.

Analysts expect UiPath’s earnings to grow at an annualized rate of 26% over the next several years. That growth would make the stock undervalued right now, trading at just 21 times 2026 earnings estimates.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends UiPath. The Motley Fool has a disclosure policy.

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