10 Oversold Software Stocks to Buy According to Analysts

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1) T Stamp Inc. (NASDAQ:IDAI)

% Decline Over Past 6 Months: ~56.21%

Average Upside Potential: ~319.7%

Number of Hedge Fund Holders: 3

T Stamp Inc. (NASDAQ:IDAI) is engaged in developing and marketing identity authentication software solutions for government and enterprise partners, and peer-to-peer markets. The company announced a strategic transaction with Qenta Inc. As per the arrangement, Qenta is spinning its Goldstar KYC technology off into a newly formed subsidiary, QID Technologies LLC, with T Stamp Inc. (NASDAQ:IDAI) having a 10% ownership interest in the new entity.

T Stamp Inc. (NASDAQ:IDAI) has offered a non-exclusive license of its AI-powered identity technologies to QID in return for a single $1 million license fee receivable in 3 installments over Q1 2025. QID is also contracting with the company for business development, product development, and product operations for identity and privacy services and solutions in return for monthly service fees starting January 1 and capped at $3.6 million annually. With T Stamp Inc. (NASDAQ:IDAI) a 10% equity holder in QID, the expected $3.6 million in billed revenue will result in a net cash inflow of $3.3 million.

From T Stamp Inc. (NASDAQ:IDAI)’s viewpoint,  the transaction remains immediately accretive as it was able to restructure and reallocate existing resources to service this new revenue stream without witnessing additional expenses. Therefore, overall growth in the software industry, mainly in AI and cybersecurity, offers a favourable environment for the company’s expansion.

While we acknowledge the potential of IDAI as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than IDAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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