Wall Street's Favorite Under-the-Radar AI Stock for 2026

AI stocks have dominated the investment landscape in recent years, so it's not easy to find one that's flown under the radar.

After three years of huge returns for just about anything AI-associated, investors took a step back in the latter half of 2025 to reassess the AI landscape. Sky-high valuations and questions about the actual returns being generated by all these investments in AI gave many pause, leading to a significant sell-off in the third and fourth quarters for some AI stocks.

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As we head into 2026, expectations have been reset somewhat, as investors become perhaps more discerning on AI stocks.

More investors may turn their attention to an AI stock called Concentrix (NASDAQ: CNXC) -- which Wall Street analysts are bullish on.

Meet Concentrix

Concentrix provides its clients with customer service and experience solutions to help them better interact with their clients, whether it's providing customer support, processing and analyzing data, conducting digital transformations, designing brand experiences, or handling back office tasks, among other services.

There are two major parts to its business -- an outsourcing model, where clients hire Concentrix to handle these functions, and a software platform that it sells to clients.

To deliver these services, Concentrix has developed a suite of AI products to provide AI-based customer service, assist live agents or technicians, or handle more complex tasks using agentic AI technology.

On the fourth-quarter earnings call, Concentrix President and CEO Chris Caldwell said that 40% of the company's new business includes solutions that incorporate some form of AI technology.

"Most importantly, our clients are realizing tangible results and impressive feats amid a market backdrop of AI noise and failed promises," Caldwell said on the earnings call.

The company has made considerable investments in AI technology as it continues to pivot toward AI-centric solutions. This is to not only meet demand for AI products, but ultimately become more efficient and increase margins.

In fiscal 2025, Concentrix saw revenue increase by about 2%, and in fiscal 2026, it anticipates 1.5% to 3% revenue growth. It had record adjusted free cash flow in 2025 of $626 million, and the company expects that to be between $630 million and $650 million in 2026. That cash flow will be used to fund investments, but Caldwell said the firm will be careful to deploy it so that it is accretive to earnings, as it was in 2025.

Analysts love this stock

Wall Street loves this stock, as it has a median price target of $57 per share, which would represent a 33% return over the next 12 months if they are right. Also, about 75% of the analysts that cover it rate it as a buy.

Concentrix is one of the largest players in its industry, and its focus on advanced AI technologies, in addition to its excellent cash flow, gives it some competitive advantages.

But one of the biggest advantages it has is its valuation. This AI stock is dirt cheap and has truly flown under the radar for most investors. It is trading at just 10 times earnings and just 3.6 times forward earnings. You'd be hard-pressed to find a cheaper AI stock. Further, its five-year PEG ratio is a minuscule 0.4, which suggests that it is undervalued.

The low valuation just makes a good stock even more attractive.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.