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US software stocks have been among the hardest-hit areas of the market in 2026 amid growing fears over AI disruption.
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Salesforce’s explosive earnings, alongside strong results from other software companies, suggest those concerns may have been overstated.
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Discover 10 undervalued US software stocks that could benefit as investor interest returns to the sector.
The US software sector has been among the hardest-hit areas of the market in 2026, as investors worried that advances in generative AI could automate coding and application development, ultimately undermining subscription-based business models. However, several strategists, including those at JPMorgan, have argued that these fears are overstated. ’s latest now offer a compelling case for a broader recovery in the sector.
Salesforce shares jumped more than 13% in after-hours trading after the company reported adjusted EPS of $5.90, far above the $3.27 consensus estimate. Revenue reached $11.35 billion, up 11% year over year and slightly ahead of expectations. Net income rose 87% to $3.53 billion, helped by a $2.6 billion gain tied to Salesforce’s strategic investment in artificial intelligence startup Anthropic.
More importantly, Salesforce reported accelerating demand for its AI products, with annual recurring revenue from Agentforce now exceeding $1 billion. The message for investors is increasingly clear: AI may pose a threat to some software business models, but it can also become a significant growth driver for established platforms.
The renewed interest extends beyond Salesforce. The software sector has rebounded sharply since late July, with the (IGV) gaining nearly 17% from its recent low and significantly outperforming the over the same period. The rotation suggests investors are beginning to reassess the threat AI poses to software companies.
These other US software stocks remain undervalued and could benefit from the sector’s rebound
For investors looking to benefit from the software sector’s resurgence without concentrating solely on Salesforce, several other opportunities stand out. We therefore used the Investing.com screener to identify U.S. software stocks that meet the following criteria:
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Market capitalization greater than $20 billion
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Upside potential of more than 20% according to InvestingPro’s Fair Value, which synthesizes several recognized valuation models
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Health score greater than 3/5
This search allowed us to identify 10 stocks:
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Specifically, these US software stocks with strong financial health are currently undervalued by 20.6% to 59.5% based on Fair Value.
Among these stocks are:
- , which operates the world’s largest online auto auction platform, uses technology and data across everything from vehicle damage assessment to matching sellers with buyers. The stock has been caught up in the broader selloff in technology names, despite resilient fundamentals. In the third quarter of fiscal 2026, Copart reported EPS of $0.43, ahead of the $0.41 consensus, while revenue rose 2.1% to $1.24 billion. Jay Adair’s return as CEO also provides greater continuity following the recent leadership transition. The next earnings report is expected on September 9.
- , which has evolved beyond ride-hailing into a technology platform using AI to optimize pricing, logistics, and the rollout of autonomous vehicles. Shares came under pressure this summer amid broader concerns about technology stocks, despite strong second-quarter 2026 results, with revenue rising 12% to $14.19 billion and gross bookings increasing 22%. Investor caution has centered mainly on relatively conservative third-quarter guidance and Uber’s plans to invest more than $10 billion in robotaxis, with the company targeting operations across 15 cities by the end of 2026.
However, several other stocks on the list offer even more compelling profiles, particularly from a valuation perspective.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any assets and does not constitute an offer, solicitation, recommendation, or advice to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky; therefore, any investment decision and the associated risk are the sole responsibility of the investor. Additionally, we do not provide any investment advisory services.
