As we delve into the financial landscape of 2024, there is an unmistakable sense of optimism surrounding artificial intelligence (AI) technologies. This optimism is not only impacting tech stocks but is also providing momentum for diverse sectors, including utilities, as evidenced by the S&P 500’s performance this year. For investors looking to capitalize on this growth, identifying companies with robust long-term potential is crucial. Top analysts on Wall Street are often instrumental in aiding this process, illuminating the essential factors that can drive sustained growth for individual companies. This article will explore three stocks that have recently garnered the attention of leading analysts, showcasing their potential for future growth.
First on our list is Fortinet (FTNT), a cybersecurity firm that aims to excel in the burgeoning secure access service edge (SASE) market. Recently, TD Cowen analyst Shaul Eyal issued a reaffirmed buy rating on Fortinet shares, elevating the price target from $75 to $90. His confidence is rooted in positive feedback from industry interactions and robust channel checks, indicating a recovery trend within Fortinet’s business operations. Eyal expects Fortinet to achieve revenues and billings at the higher end of its guidance for the third quarter, with potential for modest upside.
What sets Fortinet apart is its strategic focus on operational technology products, which are increasingly necessary as organizations replace outdated systems. Furthermore, Fortinet’s advancements in machine learning and AI are enhancing its cybersecurity offerings, positioning the company to benefit from rising demand for solutions that protect cloud environments—a factor that has become exceedingly pressing given the frequency of data breaches. With Eyal being one of the top analysts at TipRanks, boasting a success rate of 71% on his ratings, his endorsement signals Fortinet’s promising trajectory amid an evolving digital landscape.
Next up is GitLab (GTLB), a cloud-based software provider utilizing AI to optimize developer productivity and operational efficiency. This company is vying for a more significant share of the $40 billion total addressable market within the software development lifecycle space. Mizuho analyst Gregg Moskowitz recently reiterated a buy rating for GitLab, heightening the price target to $62, supported by insights gained during management discussions.
Moskowitz expressed optimism regarding GitLab’s prospects, especially given the momentum seen with their Duo Pro product, which is slated to benefit from the generative AI trend in 2025. Management also reported heightened customer interest in GitLab Dedicated, contributing to increased revenue per user. The analyst commends the company for its strategic approach to expanding its customer base and enhancing pricing models, underscoring GitLab’s potential to maintain robust growth over the medium to long term. Holding a ranking of 321 among over 9,100 analysts on TipRanks, with a historical success rate of 58%, Moskowitz’s backing further substantiates GitLab’s position as a growth contender.
Lastly, we turn our attention to Nvidia (NVDA), a titan in the semiconductor industry that has witnessed unprecedented revenue growth, primarily driven by its graphics processing units (GPUs) used in artificial intelligence applications. Following an informative investor meeting, Goldman Sachs analyst Toshiya Hari reiterated a buy rating on Nvidia, raising the price target from $135 to $150. His enthusiasm stems from a clearer understanding of Nvidia’s competitive advantages, particularly as workload complexities necessitate advanced computing solutions.
Nvidia’s management expressed confidence about the future demand for its products, especially given the ongoing trend of increased investment in cloud computing and GPU technology amid the generative AI boom. Hari’s updated fiscal forecasts for 2025-2027 reflect the anticipated growth driven by Nvidia’s innovative Blackwell platform and partnerships with major original equipment manufacturers. With a strong historical success rate of 68% and an average return of 27.5% on his ratings, Hari’s endorsement reinforces Nvidia’s place as a leading player poised for continued success in the tech sector.
The stock market of 2024, fueled by the optimism surrounding AI technologies, presents a unique landscape for investors. Fortinet, GitLab, and Nvidia are three companies highlighted by top analysts, each showing distinct potential for long-term growth. As investors seek sustainable returns, understanding the drivers behind these organizations can pave the way for informed decision-making and strategic wealth-building. By focusing on innovative firms leveraging technological advancements, investors are well-positioned to capitalize on the burgeoning opportunities arising from the AI revolution.