Two Agentic AI Stocks to Watch

Generative artificial intelligence (AI) has emerged as a significant application of AI technology, focusing on creating content like text, images, videos, or audio based on user prompts. A well-known instance of generative AI is ChatGPT, where users ask questions and receive text-based answers. However, the future may belong to a new development called agentic AI. This innovative form of AI allows automated agents to perform specific tasks independently, without needing constant human oversight.

This article will discuss two stocks that are positioned to benefit from the future of agentic AI.

UiPath

UiPath (PATH -1.02%) initially gained recognition as a robotic process automation (RPA) company. It provided tools that enabled businesses to develop software robots capable of executing simple tasks, such as data entry. In addition, UiPath's platform offered low-code development options and document processing capabilities, which included quality assurance testing.

It is essential to note that traditional robotic automation primarily handles structured data and rule-based tasks, allowing robot agents to streamline repetitive activities. On the other hand, agentic AI represents a leap forward, as it caters to unstructured data and empowers AI agents to autonomously determine the best approaches to completing tasks.

During its user conference in October, UiPath revealed its strategy for agentic automation. The company is set to launch several innovative tools, including Agent Builder, which will enable users to create agents that collaborate with software robots. Users can develop these agents from scratch or utilize pre-built templates using the low-code platform. Additionally, clients will be able to incorporate third-party robots into their workflows.

UiPath will also introduce Agentic Orchestration, a tool designed to harmonize the interactions between humans, robots, and AI agents. This new offering will facilitate the design, implementation, monitoring, operation, and optimization of intricate business processes. With this solution, UiPath aims to make AI practical and actionable across various applications.

Despite facing challenges in transitioning from a robotic automation entity to an agentic AI provider, UiPath remains on a growth trajectory. Its founder has returned as CEO, steering the company towards new opportunities. Notably, the company experienced a 9% increase in revenue during the last quarter, while its annual recurring revenue (ARR) climbed by 17%. Furthermore, existing clients are increasing their spending, as evidenced by a net dollar retention rate of 113%. Nevertheless, UiPath must focus on attracting new clients, and it has formed partnerships with significant companies like SAP, Microsoft, Deloitte, and Ernst & Young to achieve this goal.

The stock is currently trading at a forward price-to-sales (P/S) ratio of 4.8 based on fiscal 2026 analyst projections, indicating it could be a potential rebound candidate as its new agentic AI solutions become available.

Salesforce

Another key player exploring agentic AI is Salesforce (CRM -0.39%). Salesforce has long been recognized as a pioneer in software innovation, being one of the first companies to create a software-as-a-service (SaaS) platform from the ground up.

Today, Salesforce is the leading provider of customer relationship management (CRM) software, serving as a centralized platform for storing customer data. Recently, the company has expanded its offerings in automation, analytics, and employee communication through acquisitions such as Mulesoft, Tableau, and Slack.

Salesforce is heavily investing in agentic AI with the launch of its new Agentforce solution. This platform allows customers to create and customize their autonomous AI agents. Agentforce includes ready-to-use agents that can be tailored using both no-code and low-code development tools.

The company has highlighted various applications for these agents across different industries. For example, in the healthcare sector, AI agents can serve as patient-service assistants, helping to answer inquiries and schedule appointments with doctors. In the public sector, an AI agent could function as a department of motor vehicle (DMV) assistant, providing information about vehicle registrations and appointments.

Since introducing Agentforce in October, Salesforce reported closing 200 deals within two months and identifying thousands of potential opportunities. With the release of Agentforce 2.0 in mid-December, which includes improved reasoning and customization features, the company indicated closing an additional 1,000 deals. This rapid success demonstrates the significant potential of agentic AI.

Agentforce operates on a usage-based model, costing $2 per conversation. Looking ahead, Salesforce aims to have 1 billion Agentforce AI agents deployed by the end of fiscal 2026.

At a forward P/S ratio of 7.6 based on fiscal 2026 analyst predictions, Salesforce stock is reasonably priced considering the immense opportunity presented by agentic AI.

Geoffrey Seiler holds shares in UiPath. The Motley Fool recommends Microsoft, Salesforce, and UiPath and has positions in these companies.

AI, Stocks, Technology