This Artificial Intelligence (AI) Stock Is Down Around 30% This Year. Could It Be a Steal of a Deal?
Key Points
UiPath recently reported earnings, which didn't appear to inspire analysts or investors.
The company faces a lot of competition, and those concerns could be weighing down the stock.
- 10 stocks we like better than UiPath ›
Investing in artificial intelligence (AI) stocks can be a huge opportunity for investors right now. AI stocks are down big of late, but they still possess a lot of upside in the long run, as the AI revolution is in its early innings. Finding a quality AI stock that is down and that has room to rise higher can potentially lead to some significant returns later on.
One AI stock that might fit that criteria is UiPath (NYSE: PATH). Entering trading this week, it has declined by close to 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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Why are investors bearish on UiPath?
UiPath is involved in robotic process automation and has an automation platform for its customers; it's the type of company that you might expect to be thriving 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 don't seem to support that excitement and optimism. The company recently wrapped up its year-end results, and for the year ending Jan. 31, its revenue totaled $1.6 billion, which was a 13% increase from the previous year. That doesn't exactly scream growth. The good news was that at least the company turned a profit of $282.3 million (versus a loss of $73.7 million a year ago).
For investors, however, that may simply not be enough to prove it's going to be a winner in AI.
Is UiPath a good AI stock to buy today?
Hype is one thing, but results are a whole other story. And unfortunately, UiPath hasn't been delivering the numbers needed to show that it's the real deal. The problem is that many businesses offer similar automation services, and if its growth rate isn't taking off, it may be indicative of the level of competition it faces in the market today.
Analysts have also been lowering their price targets for the stock recently, as they haven't been impressed with UiPath's performance. The consensus analyst price target is just over $14, indicating a near-term upside of around 20% from where the stock is right now. But if its results continue to underwhelm, that price target could come down.
Overall, there isn't a compelling case to invest in UiPath stock today. Although it's down big this year, it's for good reason, as the company's growth prospects are questionable. And ultimately, I think there are better growth stocks out there than UiPath.
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David Jagielski, CPA 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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