Amid the rising optimism surrounding artificial intelligence (AI), the S&P 500 has demonstrated noteworthy resilience in 2024, buoyed primarily by key players in the semiconductor and utility sectors. As investors navigate through the complex landscape of stock market opportunities, it becomes paramount to identify companies with sustainable long-term growth potential. Leveraging insights from top analysts can equip investors with the necessary knowledge to uncover promising stock picks that stand out in today’s highly volatile market. Here, we will explore three notable stocks that are gaining traction among Wall Street experts.
Cybersecurity has become an increasingly critical field as digital transformation accelerates across industries. Fortinet (FTNT), a standout in this space, is positioning itself as a frontrunner in the secure access service edge (SASE) domain. The company is utilizing machine learning and AI to enhance its cybersecurity solutions, making it a compelling investment choice.
TD Cowen analyst Shaul Eyal recently reiterated a buy rating for Fortinet and adjusted the target price from $75 to $90. Citing optimistic insights from industry discussions, Eyal highlighted a strong demand trajectory across Fortinet’s comprehensive product range. His expectations for the third quarter are equally bullish, predicting that revenue will likely hit the upper limits of the company’s forecasts. Furthermore, he anticipates a 12% growth in revenue for the fourth quarter, driven by healthy sales closure rates and a robust pipeline leading into what is usually a strong quarter for technology companies.
Eyal underscored the crucial role of Fortinet’s operational technology offerings, which benefit from a long-term phase-out of outdated systems. The growing inclination towards AI-driven networks and the company’s aggressive push into cloud security—especially following its acquisition of Lacework—position Fortinet for significant growth moving forward. With a solid track record of approximately 71% success in his ratings, Eyal’s advocacy for Fortinet indicates strong investor confidence.
As businesses seek to enhance productivity and streamline operations, GitLab (GTLB) emerges as a compelling investment opportunity. Known for its AI-enabled, cloud-based software solutions, GitLab focuses on boosting developer productivity while simultaneously addressing security and compliance concerns.
Mizuho analyst Gregg Moskowitz’s recent meetings with GitLab’s management have reinforced his bullish stance on the stock, maintaining a buy rating with a price target of $62. He noted the management’s confidence in expanding their share of a $40 billion market. Notably, both GitLab and its main rival, Microsoft’s GitHub, currently only command around 5% of the software development lifecycle market, highlighting significant room for growth.
Moskowitz expressed enthusiasm for GitLab’s anticipated advancements, particularly with its Duo Pro product, which is expected to ride the wave of generative AI into a remarkable 2025. Observations around the GitLab Dedicated service also point to unexpectedly high customer interest and an increase in average revenue per user. Overall, his outlook encompasses high medium-to-long-term growth potential fueled by factors such as expansion in user seats, potential price hikes, and upsell strategies. With nearly 58% of his recommendations turning a profit, Moskowitz stands as a credible voice in favorable growth narratives surrounding GitLab.
In the realm of semiconductors, Nvidia (NVDA) stands out for its impressive revenue growth, primarily propelled by the soaring demand for its graphics processing units (GPUs). These advanced chips are essential in the development and application of AI technologies across diverse sectors.
Following a recent investor meeting, Goldman Sachs analyst Toshiya Hari reiterated his buy rating on Nvidia and has lifted the price target from $135 to $150. His confidence stems from a deeper understanding of Nvidia’s competitive advantages and the evolving landscape of compute demand driven by increasingly complex AI workloads. Singh’s analysis reflects an anticipated uplift in revenues, thanks to ongoing investments in accelerated computing and the growing ecosystem surrounding generative AI.
Management’s positive cues regarding their forthcoming Blackwell platform—a significant revenue driver in both the near and long term—underscore Nvidia’s positioning to maintain a competitive edge. Hari has adjusted his revenue forecasts for fiscal 2025 to 2027, allowing for increased cloud spending and favorable order trends from major AI server manufacturers. With a proven success rate of about 68%, his faith in Nvidia’s growth narrative underscores its status as a transformative player in the tech sector.
As AI continues to revolutionize various sectors, investors would do well to consider stocks like Fortinet, GitLab, and Nvidia. Each of these companies demonstrates robust growth potential supported by innovative technologies and favorable market dynamics. By harnessing insights from seasoned analysts, investors can strategically position themselves for lucrative opportunities in this new era of technological advancement.