Broader Headwinds in Software Group Drive Analyst Skepticism Toward nCino (NCNO)

nCino, Inc. (NASDAQ:NCNO) is one of the 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts. The overall sentiment surrounding nCino, Inc. (NASDAQ:NCNO) remains soft, as analysts update their models following a sluggish share price performance in the past year amid broader headwinds in the software group. JPMorgan sees the accelerated expansion of AI as a concern. The growing adoption of AI is expected to erode the competitive edge and long-term viability of software companies. The firm attributes this trend to the overall sector underperformance. Amid these sector challenges, the firm reduced the price target on nCino, Inc. (NASDAQ:NCNO) from $30 to $16. It maintained its ‘Neutral’ rating on the stock on February 18, 2026. On a similar note, Barclays revisited nCino, Inc. (NASDAQ:NCNO) in early January. The firm cited mixed Wall Street sentiment amid heightened AI competition, which is seen as a possible driver of the current weakness in the software sector. While making adjustments to the sector model, the firm cut its price target on the stock from $37 to $34. Still, the firm reiterated its Overweight rating. In the middle of these two updates, nCino, Inc. (NASDAQ:NCNO)’s shares fell to their 52-week low of $17.60 on February 11, 2026. The slide follows a 46.90% share price decline over the previous year, representing the tough times the software group is facing. nCino, Inc. (NASDAQ:NCNO)’s business model leverages the company’s Bank Operating System and IQ. With this, the company offers cloud-based banking software to allow financial institutions to service lending, onboarding, compliance, and risk management through AI-driven analytics. While we acknowledge the potential of NCNO 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. READ NEXT: 14 Oversold Value Stocks to Invest in Right Now and Cathie Wood’s 10 Stock Picks with Huge Upside Potential. Disclosure: None.  Follow Insider Monkey on Google News.