{"id":320360,"date":"2026-03-03T23:11:11","date_gmt":"2026-03-03T23:11:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/320360\/"},"modified":"2026-03-03T23:11:11","modified_gmt":"2026-03-03T23:11:11","slug":"this-ai-powered-software-stock-is-an-incredible-bargain-right-now","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/320360\/","title":{"rendered":"This AI-Powered Software Stock Is an Incredible Bargain Right Now"},"content":{"rendered":"

Over the last few weeks, artificial intelligence (AI) has been seen as a significant threat to many software companies. But one CEO just told investors, “AI is expanding our market opportunity.” And based on the company’s most recent earnings and its outlook, I think he’s right. Still, much of the market still doubts whether AI-powered<\/a> software will lead to a turnaround for Nice (NICE<\/a> +6.12%).<\/p>\n

But Nice is now well positioned to accelerate growth<\/a> over the next few years, and its stock looks like an incredible bargain right now.<\/p>\n

\"A<\/p>\n

Image source: Getty Images.<\/p>\n

The AI-powered contact center<\/p>\n

Nice’s flagship product is CXone Mpower, its cloud-based contact-center-as-a-service platform. CXone handles incoming customer messages via phone, web chat, text, social media, email, and just about any other channel for contacting a business. It routes every message to customer service agents, optimizing agent workloads and minimizing customer wait times.<\/p>\n

Customer service is an excellent opportunity for the implementation of generative AI. A large language model with access to a company’s knowledge base, customer information, and best practices could handle a significant number of cases for contact centers. That could be seen as a major threat to Nice or a significant opportunity.<\/p>\n

So far, Nice has capitalized on the opportunity. Its AI-related revenue growth is accelerating, up 66% last quarter. That’ll be fueled in 2026 with the addition of Cognigy, a conversational AI agent developer. Nice is also increasing its AI spend by about $95 million this year, with an increased investment in compute to scale AI agents and a larger R&D budget to improve its AI capabilities.<\/p>\n

\"Nice<\/p>\n

Today’s Change<\/p>\n

(6.12%) $7.12<\/p>\n

Current Price<\/p>\n

$123.50<\/p>\n

Key Data Points<\/p>\n

Market Cap<\/p>\n

$7.2B<\/p>\n

Day’s Range<\/p>\n

$113.89 – $124.37<\/p>\n

52wk Range<\/p>\n

$94.65 – $180.61<\/p>\n

Volume<\/p>\n

1M<\/p>\n

Avg Vol<\/p>\n

875K<\/p>\n

Gross Margin<\/p>\n

66.41%<\/p>\n

The momentum should enable Nice to deliver meaningful acceleration in its cloud revenue growth, arguably its most important segment, which has experienced a marked slowdown over the last few years. Management is guiding for 14.5% to 15% cloud revenue growth for 2026, accelerating from 13% growth last year. That’s supported by its backlog, which climbed 25% year over year in the fourth quarter. Long term, the company’s AI investments should help accelerate cloud growth<\/a> over the long term. Management guided for 17% to 19% growth for the segment in 2028 at its investor day last fall.<\/p>\n

In the meantime, the company is returning about half of its free cash flow to shareholders through share repurchases. It announced a new $600 million authorization alongside its fourth quarter earnings<\/a>. That’s a significant portion of the $7 billion market cap. With the stock trading at close to 10 times earnings estimates, it looks like an excellent use of capital for both the company and prospective investors.<\/p>\n","protected":false},"excerpt":{"rendered":"Over the last few weeks, artificial intelligence (AI) has been seen as a significant threat to many software…\n","protected":false},"author":2,"featured_media":320361,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":{"0":"post-320360","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-il","12":"tag-israel","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/320360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=320360"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/320360\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/320361"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=320360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=320360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=320360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}