Axon Enterprise (AXON) put AI front and center at its Axon Week 2026 conference, unveiling Axon Vision, an expanded Axon Assistant, and Axon 911 to target data-heavy public safety and emergency response workflows.

The recent AI announcements come at a time when Axon’s share price has a 90 day share price return showing a decline of 26.78% and a year to date share price return showing a decline of 28.55%. However, the 5 year total shareholder return of 182.60% indicates that long term holders have still seen substantial gains.

If Axon’s push into AI has your attention, it can be helpful to see what else is shaping the theme, starting with 38 AI infrastructure stocks.

So with Axon’s shares down sharply over the past year, yet still reflecting strong growth expectations and AI optimism, are you looking at an undervalued public safety leader here, or has the market already priced in future gains?

Most Popular Narrative: 33.7% Undervalued

Axon Enterprise's most followed narrative pegs fair value at $606.83 versus the last close of $402.59, which points to a sizeable valuation gap built on a long term shift from hardware toward software and data.

One company I find particularly interesting is Axon Enterprise. Many investors still associate the company primarily with TASER devices, but I think the more compelling part of the story is how Axon has quietly transformed itself into a software and data platform for public safety. What began as a hardware business is increasingly becoming an ecosystem built around digital evidence, cloud software, and connected policing tools.

Curious how that fair value is built? The narrative leans heavily on recurring software revenue, ambitious revenue growth, and profitability assumptions that treat Axon more like a scaled platform than a hardware maker.

Result: Fair Value of $606.83 (UNDERVALUED)

However, this hinges on Axon executing its software transition while managing hardware dependence, as well as potential pushback around AI adoption in sensitive public safety workflows.

Another View: Price Tag Tells a Different Story

That $606.83 fair value is built on a long term software shift, but the current P/S of 11.7x paints a different picture. It is higher than the US Aerospace & Defense average of 4.7x and also above peer levels of 7.7x, even though the fair ratio sits higher at 17.3x.

In practical terms, you are paying a premium today, with the possibility that the market could move closer to that higher fair ratio or settle nearer to sector and peer levels. The real question is which reference point you trust most when judging your own risk tolerance and return expectations: the market today, or the fair ratio the numbers point to.

Next Steps

Seeing both optimism and caution in the story so far, you may want to check the underlying data yourself and decide where you stand. If you want a quick snapshot of what the market is worried about and what it is excited by, start with these 2 key rewards and 3 important warning signs.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.