Wall Street Analysts Name Three Best Stocks for Betting on AI
TipRanks experts bet on AI infrastructure developers, chipmakers, and the private aerospace sector
Amid seasonal reporting, geopolitical tensions in the Middle East, and concerns over high artificial intelligence expenditures, investors are seeking reliable assets. Analysts from the platform have identified three companies with strong unit economics and high growth potential.
Datadog: Rising demand for security and monitoring
Bank of America analyst Koji Ikeda reaffirmed a 'buy' rating for Datadog shares and raised the target price to $335. Growth drivers include accelerated corporate migration to the cloud, adoption of AI agents, and development of cybersecurity products. The expert expects the company's third-quarter revenue to grow by 28.7%.
Nvidia: Dominance in the chip market and overcoming shortages
Morgan Stanley analyst Joseph Moore maintains a target price of $300 for Nvidia shares. The key success factor remains demand outpacing supply and effectively addressing issues in supply chains. Moore highlights the high returns from the development of the Vera Rubin architecture and the expansion of contract capacities for chip packaging and testing.
SpaceX: Record AI revenues and business scaling
Needham analyst Ryan Koontz reaffirmed a 'buy' rating with a target price of $250 following the company's strong report. SpaceX's revenue for the third quarter of 2026 surged by 161% year-over-year, with AI revenues reaching $7.56 billion (compared to $813 million a year earlier). The expert emphasizes the success of the vertically integrated model, the growth in the number of Connectivity service subscribers to 13.6 million, and plans to increase capacity in 2027.
