Artificial intelligence has undeniably influenced the stock market's upward trajectory, yet not all companies associated with AI have received positive market sentiment. Many firms with substantial AI capabilities face skepticism, despite possessing promising growth prospects. A detailed examination of three lesser-appreciated AI stocks suggests that they could emerge as prominent market leaders by 2026.
UiPath: Building on Robotic Process Automation to Embrace AI Synergies
UiPath, traditionally recognized for its expertise in robotic process automation (RPA), initially encountered skepticism as AI technologies advanced. The company provides a platform where software bots automate repetitive, rule-based tasks. Investors questioned the longevity of software bots in an AI-dominated environment, assuming AI could entirely supplant them.
However, software bots present cost advantages making them suitable for specific functions where deploying AI may be less economical. Critically, UiPath's platform includes governance and management frameworks essential for orchestrating automated tasks effectively, serving as a strategic foundation for expanding AI integration.
UiPath introduced its Maestro platform, which signifies an evolution by managing a hybrid digital workforce composed of both AI agents and conventional software bots. This approach allows the assignment of the most appropriate technology to tasks, optimizing impact and cost-efficiency. As the ecosystem of AI agents grows, the ability to integrate and manage these diverse components becomes increasingly valuable.
Financially, UiPath is priced with a forward price-to-sales (P/S) ratio slightly exceeding five times estimated revenue for 2026, indicating potential substantial appreciation if the company accelerates its revenue growth momentum.
GitLab: Expanding DevSecOps with AI-Enhanced Productivity
Another technology company frequently categorized as an AI underperformer is GitLab. Despite concerns that AI might diminish the demand for coding professionals — thereby undermining GitLab's subscription model based on user seats — the company has demonstrated resilient growth. Over the past two years, GitLab consistently posted revenue increases of 25% to 35% per quarter.
GitLab operates a DevSecOps platform, facilitating secure software development and operations. Rather than contracting, GitLab has expanded its user base, assisted in part by AI-driven productivity enhancements, which have effectively increased software output and utilization.
Additionally, GitLab is progressing towards a hybrid pricing framework combining seat-based subscriptions with usage-based elements. This transition aligns revenue streams more closely with actual platform utilization.
GitLab has further enriched its value proposition through its Duo Agent AI solution, designed to assist developers by generating code and streamlining workload processes. This AI tool contributes to higher average revenue per user (ARPU) and reinforces the company's competitive positioning.
With gross margins approaching 88% and continued mid-20% revenue growth projections, GitLab's forward price-to-sales multiple remains under six times for fiscal 2027, suggesting the stock might rebound if growth sustains.
Adobe: Sustaining Growth with Multi-Modal AI Integration
Adobe has also faced skepticism regarding its AI potential, although it maintains steady revenue expansion rates around 10% to 11% during fiscal 2025. Its forecast anticipates annual recurring revenue growth exceeding 10% in fiscal 2026, indicating stable momentum.
The company's AI portfolio includes its proprietary Firefly model and access to external AI frameworks like Alphabet's Gemini and Veo, alongside OpenAI's GPT Image and Sora. These AI assets support Adobe's creative software suite, alongside other AI-driven offerings such as Acrobat AI Assistant and the GenStudio marketing platform.
Interestingly, Adobe recently observed a tripling in generative AI credit consumption quarter-over-quarter, an indicator that customers may be upgrading to higher service tiers involving increased credit usage.
Adobe's strong earnings profile and a forward price-to-earnings ratio near 15 times present an attractive valuation framework. Provided Adobe executes on its strategies effectively, the company is well-positioned for a robust 2026 performance.
Summary
While the AI sector has accelerated overall market gains, certain firms with substantial AI-related offerings remain undervalued or perceived as laggards. UiPath, GitLab, and Adobe illustrate how nuanced AI applications combined with sound financial metrics can support sustained revenue growth and favorable valuation trajectories. These companies demonstrate diverse approaches to integrating AI technologies within their platforms, suggesting untapped upside potential through 2026.
Key Points
- UiPath leverages its established RPA platform and new Maestro AI management system to optimize digital workforce deployment, trading modestly above a 5x forward P/S ratio based on 2026 expectations.
- GitLab's DevSecOps platform benefits from AI tools like Duo Agent to enhance productivity and customer retention, supported by high gross margins and a transition toward hybrid pricing models.
- Adobe sustains double-digit recurring revenue growth and integrates multiple AI models into its creative and marketing products, evidenced by sharply rising consumption of generative AI credits.
Risks and Considerations
- The market's perception of AI relevance may adversely affect stock valuations if firms like UiPath and GitLab fail to demonstrate accelerated revenue growth or operational efficiency gains despite AI integration.
- GitLab's seat-based subscription model might face headwinds if AI adoption significantly decreases the need for human developers; the success of its hybrid pricing approach remains uncertain.
- Adobe's steady growth relies partly on customers upgrading product tiers for higher AI credit consumption; failure to maintain increased engagement could impact revenue forecasts.