This AI-Powered Software Stock Is an Incredible Bargain Right Now

Published: Tuesday, March 3, 2026 at 5:35 pm

AI Software Company Poised for Growth, Despite Market Doubts

Recent market sentiment surrounding artificial intelligence (AI) has presented both challenges and opportunities for software companies. However, one company, Nice, is positioning itself to capitalize on the AI revolution, according to recent reports. Despite some market skepticism, Nice's leadership believes AI is expanding its market potential.

Nice's core product, CXone Mpower, is a cloud-based contact-center-as-a-service platform. This platform manages customer communications across various channels, routing messages to customer service agents and optimizing workloads. The company is leveraging AI to enhance its offerings, particularly in the realm of customer service.

Nice has reported accelerating AI-related revenue growth, reaching 66% in the last quarter. This growth is expected to continue, fueled by the acquisition of conversational AI agent developer Cognigy and a significant increase in AI spending, including investments in compute and research and development.

The company anticipates this momentum will drive significant acceleration in its cloud revenue growth, a key segment that has experienced a slowdown in recent years. Management projects cloud revenue growth of 14.5% to 15% for 2026, up from 13% last year. This is supported by a strong backlog, which increased by 25% year over year in the fourth quarter. Long-term, the company expects its AI investments to further accelerate cloud growth, with management guiding for 17% to 19% growth for the segment in 2028.

In addition to its growth strategy, Nice is returning capital to shareholders through share repurchases. The company recently announced a new $600 million authorization, representing a significant portion of its market capitalization. With the stock trading at a multiple of earnings estimates, the company's actions are seen as a good use of capital.

BNN's Perspective:

While the market's initial reaction to AI has been cautious, Nice's proactive approach to integrating AI into its core business model is encouraging. The company's focus on cloud revenue growth and its commitment to returning capital to shareholders suggest a balanced strategy. However, investors should remain vigilant and monitor the company's ability to execute its AI-driven growth plans effectively.

Keywords: AI, artificial intelligence, software, Nice, CXone Mpower, cloud, revenue growth, contact center, share repurchase, investment, earnings, market, customer service

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