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Buy 5 AI Laggards of 2025 to Tap Their Growth Potential in 2026
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Key Takeaways
MRVL, TEAM, ADBE, WDAY and SNAP have lagged in 2025 despite AI-driven market strength.
Each pick shows rising earnings estimates and notable growth catalysts across AI offerings.
All five stocks carry double-digit price upside potential in the short term.
The artificial intelligence (AI)-driven astonishing bull run of 2023 and 2024 has continued in 2025 too. With less than four weeks to close this year, the AI-centric stocks are set to witness another fabulous year buoyed by the enormous growth of this space.
Despite these positives, several AI stocks have provided double-digit negative returns this year. Here, we have identified five AI stocks with a favorable Zacks Rank that have significantly lagged in 2025. However, these stocks have room for growth in the near future.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Marvell Technology Inc.
Zacks Rank #1 Marvell Technology is a promising player in the solid-state drive controllers’ market. The storage market is seeing a steady increase in demand, given the fast-growing data volume, especially the exponential growth in unstructured data. Completion of inventory digestions is likely to aid growth for MRVL across the enterprise networking and carrier infrastructure end markets.
MRVL’s third-quarter fiscal 2026 revenues grew 36.8% year over year, mainly driven by strong growth in the data center and continued recovery in enterprise networking and carrier infrastructure end markets.
MRVL announced the acquisition (expected to close in the first quarter of fiscal 2027) of Celestial AI, which specializes in the Photonic Fabric technology platform. This platform is purpose-built for scale-up optical interconnect.
MRVL highlighted that Celestial AI is “deeply engaged” with several hyperscalers and ecosystem partners. Celestial AI has already won a major contract with one of the biggest hyperscalers. This hyperscaler intends to use the photonic fabric chiplets in its next-generation scale-up architecture.
MRVL has an expected revenue and earnings growth rate of 21.7% and 25.7%, respectively, for next year (ending January 2027). The Zacks Consensus Estimate for next year’s earnings has improved 6.3% in the last seven days. The short-term average price target of brokerage firms for the stock represents an increase of 23% from the last closing price of $92.
Atlassian Corp.
Zacks Rank #2 Atlassian has been benefiting from the rising demand for remote working tools amid the hybrid work trend and accelerated digital transformation. TEAM’s AI-powered capabilities are seeing rapid adoption, with over 1 million monthly active users engaging with Atlassian Intelligence features, marking a 25X year-over-year increase in AI interactions.
Atlassian’s AI-powered Rovo platform and automation tools are driving significant growth in premium and enterprise editions, demonstrating high demand for AI-enhanced workflows. Investments in multi-model AI strategies and advanced search capabilities further differentiate TEAM’s offerings in an increasingly competitive landscape.
TEAM’s latest focus on adding generative AI features to some of its collaboration software is likely to drive the top line over the long run. The company has collaborated with OpenAI to enhance the capabilities of its Confluence, Jira Service Management and other programs with generative AI features. TEAM is offering generative AI-enabled features under the Atlassian Intelligence brand, which is designed to help employees be more efficient while users remain in control of data.
Atlassian has an expected revenue and earnings growth rate of 20.8% and 29.4%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 1.3% in the last 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 46.5% from the last closing price of $160.74.
Adobe Inc.
Zacks Rank #2 Adobe has extensively implemented AI applications across its flagship products, such as Photoshop, Illustrator, Lightroom, and Premiere. Earlier this year, ADBE introduced generative AI-driven Adobe Firefly. Moreover, Adobe Acrobat and Reader AI Assistant help users summarize documents and answer questions, saving time and helping them accomplish tasks faster.
Using its new AI-driven cloud-based platform, ADBE is also diversifying into digital marketing services, offering data mining services that help businesses measure page views, purchases and social media sites. Adobe Marketing Cloud enables marketers to deliver personalized web experiences across multiple devices, manage multichannel campaigns and optimize media monetization.
ADBE has launched Adobe Express, an application for quick editing effects. Leveraging generative AI, this tool is useful for short-form video content like Instagram Reels. Adobe also launched an AI-based Express app for iOS and Android.
Adobe has an expected revenue and earnings growth rate of 9.2% and 13.3%, respectively, for the current year (ending November 2026). The Zacks Consensus Estimate for current-year earnings has improved 1% in the last 90 days. The short-term average price target of brokerage firms for the stock represents an increase of 36.8% from the last closing price of $339.12.
Workday Inc.
Zacks Rank #2 Workday’s diversified product portfolio continues to yield a steady flow of customers. WDAY’s cloud-based business model and expanding product portfolio have been the primary growth drivers. The company is also gaining traction in the international market. WDAY has a strong balance sheet and ample liquidity. This allows the company to invest in portfolio expansion and strategic acquisitions.
Significant investment from Elliott Investment Management will likely drive innovation. Management is putting a strong focus on integrating advanced AI and ML capabilities. This will drive long-term benefits. WDAY’s solid customer wins in education, healthcare, financial Services, retail and hospitality verticals are driving the top line.
Workday has an expected revenue and earnings growth rate of 12.1% and 17.4%, respectively, for next year (ending January 2027). The Zacks Consensus Estimate for next-year earnings has improved 1% over the last 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 24.9% from the last closing price of $221.
Snap Inc.
Zacks Rank #2 Snap’s strategic integration of AI across its platform fundamentally transforms how teenagers discover information and interact with content, creating significant monetization opportunities beyond traditional advertising.
The landmark Perplexity partnership demonstrates SNAP’s emerging role as a primary distribution channel for conversational AI services, positioning the company to capture value as information consumption shifts toward AI-mediated interfaces.
Perplexity will pay Snap $400 million over one year to integrate SNAP’s AI-powered answer engine into Snapchat's chat interface starting in early 2026, with revenue contributions expected to begin that year. The partnership targets Snap's 943 million monthly active users.
The explosive growth trajectory of Snapchat+ validates the platform's ability to monetize teenage users through exclusive AI-enhanced features and premium experiences, establishing a recurring revenue foundation that lowers advertising dependency.
Snap has an expected revenue and earnings growth rate of 13.4% and 52.3%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 2.3% over the last 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 23% from the last closing price of $8.03.
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Buy 5 AI Laggards of 2025 to Tap Their Growth Potential in 2026
Key Takeaways
The artificial intelligence (AI)-driven astonishing bull run of 2023 and 2024 has continued in 2025 too. With less than four weeks to close this year, the AI-centric stocks are set to witness another fabulous year buoyed by the enormous growth of this space.
Despite these positives, several AI stocks have provided double-digit negative returns this year. Here, we have identified five AI stocks with a favorable Zacks Rank that have significantly lagged in 2025. However, these stocks have room for growth in the near future.
These stocks are: Marvell Technology Inc. (MRVL - Free Report) , Atlassian Corp. (TEAM - Free Report) , Adobe Inc. (ADBE - Free Report) , Workday Inc. (WDAY - Free Report) and Snap Inc. (SNAP - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Marvell Technology Inc.
Zacks Rank #1 Marvell Technology is a promising player in the solid-state drive controllers’ market. The storage market is seeing a steady increase in demand, given the fast-growing data volume, especially the exponential growth in unstructured data. Completion of inventory digestions is likely to aid growth for MRVL across the enterprise networking and carrier infrastructure end markets.
MRVL’s third-quarter fiscal 2026 revenues grew 36.8% year over year, mainly driven by strong growth in the data center and continued recovery in enterprise networking and carrier infrastructure end markets.
MRVL announced the acquisition (expected to close in the first quarter of fiscal 2027) of Celestial AI, which specializes in the Photonic Fabric technology platform. This platform is purpose-built for scale-up optical interconnect.
MRVL highlighted that Celestial AI is “deeply engaged” with several hyperscalers and ecosystem partners. Celestial AI has already won a major contract with one of the biggest hyperscalers. This hyperscaler intends to use the photonic fabric chiplets in its next-generation scale-up architecture.
MRVL has an expected revenue and earnings growth rate of 21.7% and 25.7%, respectively, for next year (ending January 2027). The Zacks Consensus Estimate for next year’s earnings has improved 6.3% in the last seven days. The short-term average price target of brokerage firms for the stock represents an increase of 23% from the last closing price of $92.
Atlassian Corp.
Zacks Rank #2 Atlassian has been benefiting from the rising demand for remote working tools amid the hybrid work trend and accelerated digital transformation. TEAM’s AI-powered capabilities are seeing rapid adoption, with over 1 million monthly active users engaging with Atlassian Intelligence features, marking a 25X year-over-year increase in AI interactions.
Atlassian’s AI-powered Rovo platform and automation tools are driving significant growth in premium and enterprise editions, demonstrating high demand for AI-enhanced workflows. Investments in multi-model AI strategies and advanced search capabilities further differentiate TEAM’s offerings in an increasingly competitive landscape.
TEAM’s latest focus on adding generative AI features to some of its collaboration software is likely to drive the top line over the long run. The company has collaborated with OpenAI to enhance the capabilities of its Confluence, Jira Service Management and other programs with generative AI features. TEAM is offering generative AI-enabled features under the Atlassian Intelligence brand, which is designed to help employees be more efficient while users remain in control of data.
Atlassian has an expected revenue and earnings growth rate of 20.8% and 29.4%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 1.3% in the last 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 46.5% from the last closing price of $160.74.
Adobe Inc.
Zacks Rank #2 Adobe has extensively implemented AI applications across its flagship products, such as Photoshop, Illustrator, Lightroom, and Premiere. Earlier this year, ADBE introduced generative AI-driven Adobe Firefly. Moreover, Adobe Acrobat and Reader AI Assistant help users summarize documents and answer questions, saving time and helping them accomplish tasks faster.
Using its new AI-driven cloud-based platform, ADBE is also diversifying into digital marketing services, offering data mining services that help businesses measure page views, purchases and social media sites. Adobe Marketing Cloud enables marketers to deliver personalized web experiences across multiple devices, manage multichannel campaigns and optimize media monetization.
ADBE has launched Adobe Express, an application for quick editing effects. Leveraging generative AI, this tool is useful for short-form video content like Instagram Reels. Adobe also launched an AI-based Express app for iOS and Android.
Adobe has an expected revenue and earnings growth rate of 9.2% and 13.3%, respectively, for the current year (ending November 2026). The Zacks Consensus Estimate for current-year earnings has improved 1% in the last 90 days. The short-term average price target of brokerage firms for the stock represents an increase of 36.8% from the last closing price of $339.12.
Workday Inc.
Zacks Rank #2 Workday’s diversified product portfolio continues to yield a steady flow of customers. WDAY’s cloud-based business model and expanding product portfolio have been the primary growth drivers. The company is also gaining traction in the international market. WDAY has a strong balance sheet and ample liquidity. This allows the company to invest in portfolio expansion and strategic acquisitions.
Significant investment from Elliott Investment Management will likely drive innovation. Management is putting a strong focus on integrating advanced AI and ML capabilities. This will drive long-term benefits. WDAY’s solid customer wins in education, healthcare, financial Services, retail and hospitality verticals are driving the top line.
Workday has an expected revenue and earnings growth rate of 12.1% and 17.4%, respectively, for next year (ending January 2027). The Zacks Consensus Estimate for next-year earnings has improved 1% over the last 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 24.9% from the last closing price of $221.
Snap Inc.
Zacks Rank #2 Snap’s strategic integration of AI across its platform fundamentally transforms how teenagers discover information and interact with content, creating significant monetization opportunities beyond traditional advertising.
The landmark Perplexity partnership demonstrates SNAP’s emerging role as a primary distribution channel for conversational AI services, positioning the company to capture value as information consumption shifts toward AI-mediated interfaces.
Perplexity will pay Snap $400 million over one year to integrate SNAP’s AI-powered answer engine into Snapchat's chat interface starting in early 2026, with revenue contributions expected to begin that year. The partnership targets Snap's 943 million monthly active users.
The explosive growth trajectory of Snapchat+ validates the platform's ability to monetize teenage users through exclusive AI-enhanced features and premium experiences, establishing a recurring revenue foundation that lowers advertising dependency.
Snap has an expected revenue and earnings growth rate of 13.4% and 52.3%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 2.3% over the last 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 23% from the last closing price of $8.03.