The technology sector is loaded with big megacap stocks that dominate their industry. However, if there is one mid-cap stock that could emerge to become one of the most important tech stocks by 2028, it is UiPath (PATH 8.16%).
UiPath roots are in robotics process automation (RPA). This is where software bots could perform simple, rules-based tasks, like data entry or customer onboarding, to help automate workflows and save employees from doing monotonous tasks. With the advent of artificial intelligence (AI), it shook up this business. However, software robots are much cheaper to deploy than AI agents, and thus still have solid use cases.
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An agentic AI opportunity
Meanwhile, the introduction of AI agents also created a huge opportunity for UiPath. With RPA, UiPath needed to create a system with strict governance and compliance guardrails in place that could also reach into the depths of legacy systems. This gave the company the foundation to build out an AI agent orchestration platform to allow customers to manage a growing number of AI agents from various third-party vendors. With the proliferation of AI agents, this type of platform to be able to manage AI agents and make sure none go rogue will become vitally important in the coming years.
At the same time, UiPath's RPA background also gives its platform an added advantage of being able to manage both AI agents and software bots. Its Maestro platform can assign the most appropriate tasks for both AI agents and software bots, helping customers save money in the process by not wasting tokens of AI agents when the job could be just as easily done by a software bot. Its platform is also designed to keep humans in the loop, so no costly surprises show up later. Customers can also build their own AI agents on its platform through no-code and low-code tools, and it recently announced the acquisition of WorkFusion to add pre-built AI agents focused on financial service security to its platform.
NYSE: PATH
Key Data Points
Right now, UiPath is still in the very early innings of its agentic AI journey, but it's formed partnerships with many top companies in the AI space and is innovating. The company also just saw revenue begin to accelerate last quarter, with it climbing 16% in fiscal Q3, up from 14% growth in fiscal Q2. If it can become a leading agentic AI orchestration platform, UiPath could become one of the most important tech companies by 2028.
With UiPath trading at a forward price-to-sales (P/S) ratio of below 4 times, based on analysts' estimates for fiscal 2027 (ending January), and a forward P/E of less than 16 times, the stock would have explosive upside if this were to happen, which looks like a real possibility.
