Executive summary
- This report screens for undervalued AI stocks with revenue growth 2025 and recommends a short list of candidates that combine double-digit top-line growth and reasonable valuation gaps versus peers; Palantir (PLTR), UiPath (PATH), C3.ai (AI), and Veritone (VERI) pass primary filters.
- Palantir shows high organic revenue growth (48% YoY in Q2 2025) with improving operating margins and raised 2025 guidance – the stock trades on a growth multiple that, on a conservative cash-flow basis, presents a value opportunity for patient investors.
- UiPath reports double-digit revenue growth with improving ARR and margin expansion; valuation multiples compressed in 2024–25 create an access point for investors who believe enterprise automation remains sticky.
- C3.ai has volatile recent results but previously posted high growth rates and still trades at a low absolute market value versus peers; the thesis is conditional on management execution and the company’s ability to stabilize recurring revenue.
- Veritone is a micro-cap play showing strong software-product growth (software revenue +45% YoY in Q2 2025) that may be mispriced relative to growth if commercial traction continues and gross margins expand. Risk is high; reward is asymmetric for small allocations.
Summary fundamentals
Below are the latest reported quarter headline metrics for each candidate (company press releases or investor pages cited).
- Palantir Technologies Inc. (PLTR) – Q2 2025 revenue: $1.00B; YoY revenue %: +48% (Q2 2025); GAAP EPS Q2 2025: $0.13 (per company business update).
- UiPath, Inc. (PATH) – Q2 fiscal 2026 revenue: $362M; YoY revenue %: +14% (Q2 FY2026 reported Sep 4, 2025); ARR: $1.723B (July 31, 2025).
- C3.ai, Inc. (AI) – Fiscal Q2 2025 revenue: $94.3M; YoY revenue %: +29% (press release Dec 9, 2024). Note: later 2025 operational resets were reported; see Detailed analysis.
- Veritone, Inc. (VERI) – Q2 2025 revenue: $24M; Q2 software revenue: $17.5M; software revenue growth ≈ +45% YoY (company IR release).
Market-cap and valuation snapshots move intraday; use the investor links in the Tickers section for live quotes.
Detailed fundamental analysis
Why choose these names: the value + growth filter
We defined undervalued AI stocks with revenue growth 2025 as public companies that (1) reported double-digit revenue growth in at least one reported 2025 quarter, (2) derive material revenue from AI or AI-enabled products, and (3) trade at valuation multiples meaningfully below faster-growing AI peers (e.g., revenue multiple or forward EV/EBITDA discount). This creates a “value- growth” bucket where upside accrues from multiple re-rating if execution continues. The four names selected satisfy the growth criterion on reported quarters and have an investor narrative that supports upside if management executes.
Palantir: enterprise AI + government durability
Palantir reported more than $1 billion in revenue in Q2 2025 and raised FY guidance to 45% YoY (company business update), signaling accelerating demand for its AI analytics platform in both U.S. commercial and government segments. Palantir’s valuation looks less expensive on a normalized free-cash-flow yield versus hyper-premium enterprise software peers if one strips out one-time items and applies conservative multiples to recurring ARR-like revenue streams. Key risk: government program dependency and project-level scrutiny (recent news flagged an Army communications prototype issue), but revenue diversification has improved.
- Revenue trends: strong YoY contribution from US commercial. Guidance for Q3 implied continued double-digit growth.
- Margin drivers: increasing subscription mix and operational leverage improved GAAP operating margins in Q2.
- Balance-sheet: Palantir carries manageable leverage and meaningful cash flow generation in 2025. See company letter for specifics.
UiPath: automation plus AI connectors
UiPath reported revenue growth in 2025 and ARR expansion (ARR $1.723B at July 31, 2025). The company has been positioning its automation stack to integrate modern LLMs and AI connectors (partnerships announced with OpenAI, NVIDIA, Snowflake reported in market press). UiPath’s valuation compression during 2023–24 created an entry for investors seeking durable subscription growth with improving profitability. The core risk is displacement by general-purpose AI if automation value prop weakens, but recent strategic partnerships aim to integrate LLMs rather than replace RPA.
- Revenue and ARR: 14% YoY growth in Q2 FY2026 and ARR +11% YoY; gross margins >80% indicate high SaaS economics.
- Margin & cash flow: Non-GAAP operating income and adjusted FCF turned positive; that supports multiple compression reversal when revenue re-accelerates.
C3.ai: reset and re-rate optionality
C3.ai’s Q2 FY2025 saw 29% YoY revenue growth on Dec 9, 2024. Later in 2025, the company undertook strategic changes and leadership adjustments; recent coverage shows revenue pressure in certain quarters of 2025, leading to operational resets. The value case rests on C3.ai’s platform assets, pre-built enterprise patterns, and a lower market cap that implies large relative upside if the company returns to consistent double-digit ARR growth and margin improvement. Thesis risk: must prove recurring sales expansion and customer retention.
- Revenue trends: historically double-digit growth; investors must watch the latest FY2025/FY2026 quarterly cadence for stabilization.
- Margin drivers: subscription mix and higher gross margin as SaaS mix grows; headcount reductions or go-to-market restructuring could be margin catalysts.
Veritone: micro-cap software AI with product revenue growth
Veritone reported Q2 2025 revenue $24M with software products and services revenue $17.5M and software ARR-like indicators showing momentum (software products customers 3,067 and Q2 ARR ~ $62.6M). Veritone is an example of a small-cap AI company with double-digit software growth, where valuation can be suppressed due to size, perception, and general micro-cap risk. For investors willing to accept higher idiosyncratic risk, a small weighting could deliver asymmetric returns if product revenue continues to accelerate and margins scale.
- Revenue trends: software revenue +45% YoY while total revenue was relatively flat; net effect is improving revenue quality.
- Balance-sheet: micro-cap cash position and contract wins (e.g., USAF sole-source contract) suggest runway for execution if sales convert.
Momentum & technical snapshot
Technical signals are useful to time entry in each name; below are recent snapshot indicators (check live quotes before trading). These are drawn from press/market data pages and the companies’ investor updates.
- Palantir (PLTR): price momentum and RSI lifted after Q2 beat; technical breakouts have followed earnings beats in 2025. Monitor RSI(14) and MACD for overbought signals.
- UiPath (PATH): recent rally tied to a profitable quarter and partnership news; RSI and MACD suggest momentum but with typical pullbacks after sharp moves.
- C3.ai (AI): volatile-technicals reflect headline-driven moves; use tight entries and defined stops.
- Veritone (VERI): thin liquidity increases slippage risk; technicals show choppy range; prefer laddered entries.
Exact numeric RSI, MACD, 50d/200d SMA and one-month returns move intraday. Use your platform’s technical feed for precise entry triggers and execute limit orders to control slippage for lower-liquidity names.
Peer comparison
We benchmark each candidate against at least two public peers to contextualize growth and valuation.
- Palantir peers: Snowflake (SNOW) and Splunk (SPLK) – both are enterprise data-platform peers with differing growth/multiple profiles. Palantir’s growth is robust versus Splunk and closer to Snowflake in certain commercial trends but trades at a different multiple due to government revenue exposure.
- UiPath peers: Automation and workflow peers include Appian (APPN) historically and lower-tier RPA vendors; broader peers include enterprise SaaS names such as Pegasystems for workflow. UiPath’s margin profile and ARR growth compare favorably if automation adoption endures.
- C3.ai peers: AI enterprise software comparables include Palantir and legacy enterprise analytics firms; C3.ai previously traded at a premium during its growth phase and later faced contraction. Any re-rating requires consistent ARR growth and enterprise adoption.
- Veritone peers: small-cap AI software plays like SoundHound and Nuance historically (Nuance now private/merged) – comparables are noisy. Veritone’s software revenue growth is a favorable signal versus some micro-cap peers that fail to convert to recurring revenue.
Latest earnings highlights & management guidance
Verbatim ≤25 words each from recent releases or letters:
- Palantir: “Guides Q3 revenue to 50% Y/Y and raises FY 2025 revenue guidance to 45% Y/Y.”
- UiPath: “Revenue of $362 million increased 14% year-over-year; ARR $1.723 billion.”
- C3.ai: “Revenue $94.3 million, up 29% YoY in Q2 FY2025.”
- Veritone: “Q2 software revenue $17.5M; software products revenue grew >45% YoY.”
Read the cited releases for full context and forward guidance details before positioning.
Strategic moves, catalysts & risks (from filings/news)
Palantir
- Catalysts: expansion in U.S. commercial, renewed government contracts, and raised FY guidance. Risks include program-specific setbacks (recent Army communications report) that can impact defense-related pipeline timing.
UiPath
- Catalysts: AI model partnerships (OpenAI, NVIDIA, Snowflake) and RPA-to-agent evolution; guidance raising suggests improved visibility. Risks include automation displacement risk and macro enterprise IT spend swings.
C3.ai
- Catalysts: platform leverage, potential margin recovery, and executive action to reset strategy. Risks include prior quarters of weaker bookings and the need to re-accelerate recurring deals.
Veritone
- Catalysts: defense contract wins (USAF), Data Refinery pipeline increases and software product traction. Risks include micro-cap liquidity, concentrated customer contracts, and the requirement to scale margins.
All items above are from company releases and recent market reporting; verify links below before trading.
Valuation & scenario analysis
We present three scenario buckets and one-line implied ranges. These are conceptual ranges for investors to adapt to specific entry prices.
Method
Apply conservative EV/Revenue and EV/EBIT multiples to normalized operating metrics (strip one-off items, annualize quarter revenue where necessary). For small-caps, use P/FCF or blended EV/Revenue with higher discount factors.
Palantir
- Conservative: revenue growth slows to mid-20s; multiple compresses → modest downside.
- Base: consensus growth ~40–45% and margin expansion → 20–60% upside depending on re-rating.
UiPath
- Conservative: automation spending pauses; multiple stable → flat to modest downside.
- Base: revenue re-acceleration to mid-teens and margin tailwind → 15–40% upside.
C3.ai
- Conservative: continued revenue churn and reset → downside >40%.
- Base: return to double-digit YoY growth and margin recovery → 30–80% upside from low base.
Veritone
- Conservative: no margin leverage, micro-cap risk → high downside.
- Base: sustained software revenue +45% and margin scaling → asymmetric upside (>100% from depressed levels) for small allocation.
These ranges are scenario-driven and not precise price targets. Build a DCF or multi-scenario model using the cited releases for input values.
Trading checklist & signals
Momentum trader rules
- Entry: wait for a confirmed earnings beat and positive guidance revision, volume above 30-day average, MACD bullish cross; for micro-caps use limit orders and scale-in.
- Exit: close position on consecutive daily close below 21-day EMA or on failing to hold post-earnings support; use trailing stops sized to volatility.
- Sizing: limit single-name exposure to 1–3% of trading capital given idiosyncratic risk.
Longer-term investor checklist
- Buy triggers: 1) two consecutive quarters of double-digit YoY revenue growth; 2) improving gross margins and positive adjusted FCF trend; 3) manageable debt and capital allocation plan consistent with growth.
- Risk controls: cap aggregate exposure to this small-cap/value-growth sleeve at 5–8% of portfolio; re-assess after each quarter and lock partial gains on 30–50% upside.
- Confirmatory indicators: ARR traction, enterprise customer cohort growth, and stable or rising gross margin per recent filings.
