12 Cheap AI Stocks to Buy in 2025

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8. NICE Ltd. (NASDAQ:NICE)

Analyst Upside (as of January 27): 46.56%

No. of Hedge Fund Holders: 24

NICE Ltd. (NASDAQ:NICE) is a software company that offers cloud platforms for AI-driven digital business solutions internationally. The company engages in assisting businesses to improve customer interactions and manage compliance against financial crimes. The company operates through the CXone and Enlighten platforms that use AI to optimize their operations.

In Q3 2024, NICE Ltd. (NASDAQ:NICE) posted a notable 15% year-over-year growth in revenue, reported at around $690 million, driven by high demand for its AI tools. The cloud revenue soared over 24% to $500 million, surpassing the $2 billion ARR mark, which is the highest cloud growth on the largest cloud revenue base in the industry. Due to a massive growth driven by increased outputs, NICE increased its earnings by 27% year-over-year to $2.88 in Q3. NICE continued to improve its cash flow during Q3, posting $159 million in operating cash, up by 32% compared to Q3 2023.

Broyhill Asset Management stated the following regarding NICE Ltd. (NASDAQ:NICE) in its Q3 2024 investor letter:

“NICE Ltd. (NASDAQ:NICE) develops software to run customer contact centers. The company’s cloud-based software enables the implementation of greater functionality versus its on-premise competitors. Many of these on-premise competitors, which do not offer cloud-based products, have stopped rolling out new features. This has prompted their customers to switch to companies like Nice where they have wider access to new developments. Artificial intelligence is a large part of this shift and of our differentiated view. The market views AI as a threat to Nice’s core operations; we view it as an enabler of additional revenue streams with improved economics.”

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