5 Under-the-Radar AI Stocks Poised for Breakout Growth in 2026

The artificial intelligence infrastructure wave shows no signs of slowing down heading into 2026. While mega-cap AI giants command hefty valuations, a fascinating paradox emerges: several smaller and mid-sized players in the AI ecosystem dramatically underperformed last year, yet possess the foundational tools to capture disproportionate upside.

We identified five compelling opportunities that operate across different layers of the AI value chain — from process automation to enterprise security. All carry either Zacks Rank #1 (Strong Buy) or Rank #2 (Buy) designations. Here’s what makes each one compelling.

Automation Meets Generative AI: UiPath’s Expanding Moat

UiPath Inc. (PATH) — Zacks Rank #1

The company sits at the intersection of two unstoppable trends: robotic process automation and generative AI. PATH’s platform orchestrates business workflows through embedded machine learning and natural language processing, but the real inflection comes from its fresh generative AI integration.

Recent product launches — including specialized language models like DocPATH and CommPATH — represent PATH’s pivot toward agentic AI. This positions the company as enterprises increasingly demand seamless blending of automation and AI-driven decision-making at enterprise scale.

Strategic partnerships with tech titans (Microsoft, NVIDIA, Snowflake) validate PATH’s architectural approach. The company guides 9.3% revenue growth and 13.7% earnings growth for fiscal 2027, with Zacks consensus estimates climbing 5.6% over the past month — suggesting improving visibility.

Contact Center Transformation: Five9’s AI Acceleration

Five9 Inc. (FIVN) — Zacks Rank #2

FIVN operates in the less-glamorous but highly profitable contact center software space, where AI adoption creates immediate ROI. The platform powers customer service operations across voice, chat, email, and social channels, with AI agents now driving subscription revenue growth.

Five9’s Intelligent CX Platform, powered by Five9 Genius AI on Google Cloud infrastructure, represents a meaningful architectural upgrade. The company’s integrations with ecosystem leaders (Salesforce, ServiceNow, Microsoft) amplify its reach and customization capabilities.

Cloud-based contact centers remain mission-critical infrastructure for enterprises — especially as the services sector expands across India and other emerging markets. FIVN forecasts 9.5% revenue growth and 8.3% earnings growth for the current year, with earnings estimates improving 1.3% over 60 days.

Cybersecurity Through Acquisition: Qualys’ Threat Intelligence Edge

Qualys Inc. (QLYS) — Zacks Rank #1

Qualys pursues a disciplined M&A strategy that amplifies its AI capabilities. The November 2022 acquisition of Blue Hexagon injected advanced machine learning threat detection into the core platform.

QLYS operates across the entire security stack — vulnerability management, application risk (TotalAppSec), and AI workload security (TotalAI). This diversification across customer segments (enterprises, SMBs, governments) creates revenue stability during IT spending cycles.

The company’s customer base spans Fortune 500 firms and government agencies globally. Current-year guidance implies 7.7% revenue growth and 6.5% earnings growth, but here’s the telling metric: Zacks consensus earnings estimates have improved 10.4% in just 60 days, suggesting analyst rerating ahead.

Data Platforms Power Agentic AI: Teradata’s Infrastructure Play

Teradata Corp. (TDC) — Zacks Rank #1

Teradata represents a pure-play on agentic AI infrastructure. As autonomous agents run 24/7 query workloads, they require massive data management, analytics, and vector-based processing — precisely TDC’s domain.

The company’s recent innovation wave includes Enterprise Vector Store (enabling retrieval-augmented generation), ask.ai (natural language querying), and AgentBuilder for rapid AI deployment. These address the specific computational demands of agent-driven decision-making at enterprise scale.

TDC expects modest revenue growth (-0.6% current year) but stronger earnings expansion (3.6%), reflecting margin expansion and operational leverage. Earnings consensus estimates improved 8.3% over 60 days — suggesting the market is repricing TDC’s infrastructure value as agentic AI rollouts accelerate.

Embedded Security Rides Automotive Wave: BlackBerry’s QNX Momentum

BlackBerry Ltd. (BB) — Zacks Rank #2

BlackBerry’s reinvention as a software security company gains tangible traction through its QNX embedded operating system. As vehicles transition from hardware-centric to software-defined architectures, the demand for secure, real-time processing explodes.

QNX now operates in 275+ million vehicles globally, securing both autonomous driving systems and digital cockpits. This installed base creates a moat: once OEMs standardize on QNX, switching costs become prohibitive.

The company targets adjacent embedded markets (medical devices, industrial control systems) for diversification. Next fiscal year (ending February 2027) guidance points to 7.4% revenue growth and 13.3% earnings growth, with consensus estimates improving 6.3% over 30 days.

Why These Five Stand Out

The common thread: each operates in infrastructure layers where AI creates genuine productivity gains rather than speculative optionality. Unlike consumer-facing AI plays trading at nose-bleed valuations, these five serve mission-critical enterprise functions where adoption drives measurable ROI.

Their collective underperformance in 2025 created a valuation reset — precisely when their product positioning strengthens. For investors seeking AI exposure with a margin of safety, this cohort merits serious consideration heading into 2026.