NICE Ltd. (NICE) Fell Due to Investors Concerns

Parnassus Investments, an investment management firm, released its “Parnassus Value Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund focuses on owning a concentrated portfolio of U.S. large-cap stocks. For the third quarter of 2025, the fund reported a net return of 7.46% outperforming its benchmark, the Russell 1000 Value Index, which returned 5.33% for the same period. During the quarter, the portfolio reduced its weight in the IT sector to increase holdings in the Health Care sector. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

In its third-quarter 2025 investor letter, Parnassus Value Equity Fund highlighted stocks such as NICE Ltd. (NASDAQ:NICE). NICE Ltd. (NASDAQ:NICE) is a cloud platform provider for AI-driven digital business solutions. The one-month return of NICE Ltd. (NASDAQ:NICE) was 3.55%, and its shares lost 38.17% of their value over the last 52 weeks. On December 18, 2025, NICE Ltd. (NASDAQ:NICE) stock closed at $108.84 per share, with a market capitalization of $6.72 billion.

Parnassus Value Equity Fund stated the following regarding NICE Ltd. (NASDAQ:NICE) in its third quarter 2025 investor letter:

"NICE Ltd. (NASDAQ:NICE), a software company providing contact center solutions, lost investor confidence due to concerns over AI disruption. However, we believe that the company should see AI transform their business model and drive long term growth."

NICE Ltd. (NASDAQ:NICE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 22 hedge fund portfolios held NICE Ltd. (NASDAQ:NICE) at the end of the third quarter, compared to 23 in the previous quarter. NICE Ltd. (NASDAQ:NICE) reported total revenue of $732 million in Q3 2025, marking an increase of 6% year-over-year. While we acknowledge the potential of NICE Ltd. (NASDAQ:NICE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered NICE Ltd. (NASDAQ:NICE) and shared the list of undervalued stocks with biggest upside potential. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.