Group 1 - NICE Ltd. is recognized as one of the most undervalued foreign stocks to buy, with a significant upside potential according to analysts [1][4] - The company launched the Cognigy Simulator, an AI performance lab tool designed to help enterprises test, deploy, and scale AI agents for customer interactions [1][2] - The simulator addresses challenges in AI-driven customer experience (CX) and ensures reliable performance of AI agents in real-world scenarios [2] Group 2 - Wall Street analysts are optimistic about NICE Ltd., with a 12-month price target suggesting an upside of over 43.8% from current levels [4] - Rishi Jaluria from RBC Capital reiterated a Buy rating with a price target of $175, while Arjun Bhatia from William Blair also maintained a Buy rating without specifying a target [4] - NICE Ltd. provides AI-powered cloud platforms for digital business solutions, including CXone for customer experience and the Enlighten AI engine [5]

Core Viewpoint - NICE Ltd. is identified as one of the most undervalued tech stocks to buy in 2026, with analysts from RBC Capital and William Blair reiterating a Buy rating on the stock [1][2]. Group 1: Analyst Ratings and Price Targets - Rishi Jaluria from RBC Capital has set a price target of $175 for NICE Ltd. while maintaining a Buy rating [1]. - Arjun Bhatia from William Blair also maintains a Buy rating but has not disclosed a specific price target [1]. Group 2: Financial Expectations and Strategic Investments - Management anticipates a reduction in gross margins by 200 basis points in fiscal 2026 due to strategic investments in cloud and AI capabilities [2]. - The recent acquisition of Cognigy is expected to lead to lower interest income as cash is utilized for the acquisition [2]. Group 3: Long-term Outlook - Despite short-term challenges, the firm expects that strategic investments in AI and cloud will yield benefits over time [3]. - Analysts express confidence in the company's fundamental story and disciplined approach to growth [3]. Group 4: Company Overview - NICE Ltd. provides AI-powered cloud platforms for digital business solutions globally, including services like CXone for customer experience and the Enlighten AI engine [4].

Core Viewpoint - The article discusses the 10 most undervalued tech stocks to buy in 2026, emphasizing the ongoing health of the AI trade and the significant capital expenditure by major tech companies in infrastructure development [2][3][4]. Industry Insights - Doug Clinton from Intelligent Alpha indicates that the AI trade remains robust, with recent market pullbacks viewed as necessary for the technology sector [2]. - The "Mag 7" tech companies are projected to increase capital expenditures by approximately 35% in 2026, with potential growth reaching 50% [3]. - High valuations in technology stocks are attributed to reinvestment of free cash flow into infrastructure, although there are still undervalued opportunities in the sector [3]. Methodology for Stock Selection - The list of undervalued tech stocks was created using the Finviz Stock Screener, Seeking Alpha, and Insider Monkey's hedge fund database, focusing on stocks with a forward P/E ratio under 15 [6]. - The methodology emphasizes the importance of hedge fund interest, as imitating top hedge fund picks has historically led to market outperformance [7]. Company-Specific Highlights - **NICE Ltd. (NASDAQ:NICE)**: - Forward P/E Ratio: 9.46, with 22 hedge fund holders [8]. - Analysts maintain a positive outlook despite expected lower gross margins due to strategic investments in cloud and AI [9]. - The company anticipates a 200 basis point reduction in margins but expects long-term benefits from its investments [10]. - **TaskUs, Inc. (NASDAQ:TASK)**: - Forward P/E Ratio: 7.33, also with 22 hedge fund holders [11]. - Analysts project over 42% upside potential, but recent challenges have led to a hold rating [12]. - Despite near-term difficulties, the company is expected to return to growth with modest margin improvements by 2027 [13].

Core Insights - NICE Ltd. is recognized as one of the top big data stocks, but concerns exist regarding its ability to meet Cloud targets for 2028 without significant mergers and acquisitions [1] - The recent acquisition of Cognigy is viewed positively as a strategic move into the conversational AI sector, although competition from private firms like Sierra.AI is noted [2] - Analysts express mixed views, with Piper Sandler maintaining a Neutral rating and a $122 price target, while Wedbush downgraded NICE to Neutral due to challenges in the CX AI landscape and ambitious long-term goals impacting near-term margins [3] Company Overview - NICE Ltd. provides AI-powered cloud platforms for digital business solutions globally, including services like CXone for customer experience and the Enlighten AI engine [4] - The company utilizes artificial intelligence and analytics to combat fraud and ensure compliance with anti-money laundering regulations [4]