Top Wall Street Analysts Recommend These Growth Stocks

The Nvidia headquarters is located in Santa Clara, California.

Optimism surrounding artificial intelligence (AI) has played a significant role in boosting the S&P 500 in 2024, positively impacting key chip stocks and various utilities.

For investors seeking reliable returns, it is essential to focus on companies that demonstrate solid long-term growth potential. Top Wall Street analysts, with their in-depth knowledge, can guide investors in understanding the key factors that can support a company's growth and help identify stocks that are likely to yield attractive returns.

Fortinet

The first stock on the list is Fortinet (FTNT), a cybersecurity firm aiming to become a leader in the secure access service edge market. Fortinet utilizes machine learning and AI to deliver effective cybersecurity solutions.

Recently, TD Cowen analyst Shaul Eyal reaffirmed a buy rating for Fortinet and increased the price target to $90 from $75. Eyal highlighted positive channel checks and discussions with industry insiders, indicating a sustained recovery in Fortinet's business and strong demand across its diverse product range.

According to the checks, Fortinet's revenue and billings for the upcoming third quarter are expected to reach the upper limit of the company's forecast, with a chance of slight upside. Eyal also expressed confidence in a projected 12% revenue growth in the fourth quarter, supported by healthy closure rates and an expanding pipeline into a typically strong season for the company.

A critical factor behind Fortinet's recovery is the strong traction in its operational technology products, fueled by a long-term replacement cycle of outdated systems. The analyst mentioned that Fortinet is also capitalizing on the rising trend of AI-led networks and focus on cloud security, which has been enhanced by the recent acquisition of Lacework.

Eyal ranks No. 12 among over 9,100 analysts and has been correct in his ratings 71% of the time, achieving an average return of 27.3%.

GitLab

Next up is GitLab (GTLB), an AI-driven cloud-based software platform designed to boost developer productivity, enhance operational efficiency, and mitigate security and compliance risks.

After engaging with GitLab’s leadership, Mizuho analyst Gregg Moskowitz reiterated a buy rating for GitLab, setting the price target at $62. The analyst noted that management shows high confidence in tapping into a $40 billion total addressable market, where GitLab and Microsoft's GitHub currently hold only around 5% market share combined.

Management expects the pace of adoption for GitLab's Duo Pro product to accelerate in 2025, particularly due to the surge in generative AI. Moskowitz pointed out that the company is optimistic about its GitLab Dedicated offering, which is seeing unexpectedly high customer demand and resulting in increased average revenue per user.

Overall, Moskowitz maintains a positive outlook on GitLab's capacity to execute and achieve substantial growth in the medium to long term, driven by several growth drivers including seat expansion, pricing adjustments, and upsell opportunities.

Moskowitz holds the No. 321 position among over 9,100 analysts tracked, with a 58% success rate on his ratings, yielding an average return of 12.6%.

Nvidia

Finally, we turn to Nvidia (NVDA), a leader in the semiconductor industry known for remarkable revenue growth fueled by high demand for its advanced GPUs (graphics processing units) utilized in developing AI models and applications.

After meeting with Nvidia's management, Goldman Sachs analyst Toshiya Hari reaffirmed a buy rating for Nvidia, raising the price target from $135 to $150. The positive sentiment arose from a better understanding of the company's competitive advantages and anticipated increases in compute demands due to growing inference workload complexities.

Hari emphasized Nvidia's confidence in the demand landscape, bolstered by ongoing investments in accelerated computing and GPUs from data center operators amidst the AI boom. The management also shared promising insights about its upcoming Blackwell platform, which is expected to significantly contribute not just to short-term revenue growth but also to strengthen Nvidia's competitive position.

Moreover, Hari updated his revenue estimates for fiscal years 2025-2027, reflecting positive trends such as increased cloud spending and encouraging order trends from major AI server manufacturers like Dell and Hewlett Packard Enterprise. The projected improvement in chip-on-wafer-on-substrate shipments also contributed to the upward revision.

Hari ranks No. 32 among over 9,100 analysts, with successful ratings 68% of the time and an average return of 27.5%.

stocks, analysts, growth