Top Notch Mega-Corporation Artificial Intelligence (AI) Shares, According to Wall Street, Projected to Surge the Most in the Coming Year

Top Notch Mega-Corporation Artificial Intelligence (AI) Shares, According to Wall Street, Projected to Surge the Most in the Coming Year

Investors ought not to underestimate the power of a good run. And two types of stocks are currently on a roll: mega-cap behemoths with market caps of $200 billion or more, and stocks with a major focus on artificial intelligence (AI).

But can these high-flying stocks continue to soar? Many analysts believe so. Let me introduce you to three mega-cap AI stocks Wall Street thinks will fly the highest over the next 12 months.

1. Alibaba Group Holding

Alibaba Group Holding Ltd. (BABA) is Wall Street's favorite AI stock at the moment. Analysts see an upside potential of around 40%. The stock's affordable valuation, futuristic partnerships, and promising revenue growth are causing a buzz on the Street.

2. ASML Holding NV

If you ask Wall Street, ASML Holding NV's (ASML) share price could rise by an impressive 24% over the next 12 months. Surging demand for AI chips and ASML's dominance in the market are fueling optimism. However, its premium valuation may impact potential gains.

3. Salesforce

Salesforce (CRM) might just edge out Nvidia for the third spot among Wall Street's top picks. Its Agentforce platform, powered by AI, could be the key to substantial profit growth.

While analysts are generally bullish about these stocks, it's essential to consider their current valuations and potential growth prospects before diving in.

Enrichment Data:

Alibaba Group Holding Ltd. (BABA)

• Current Price Target: $117 per share, according to a recent upgrade by BofA analyst Joyce Ju[4].
• Reasons for Bullish Outlook:
• AI Integration: Alibaba is heavily investing in AI, offering notable growth for over five consecutive quarters in its AI cloud segment[4].
• Cloud Business Growth: Alibaba Cloud's year-over-year growth rose by 7% in the second quarter of FY2025, driven by the surge in public cloud services[4].
• Analyst Expectations: BofA analyst Joyce Ju anticipates a 9% year-over-year revenue increase for Alibaba in Q3 FY2025, surpassing Wall Street's estimates by 2%[4].

ASML Holding NV (ASML)

• Current Price Target: Analysts like Bernstein have raised their price target for ASML to $887.95[2][5].
• Reasons for Bullish Outlook:
• EUV Technology: ASML's pioneering EUV technology is in high demand for AI chip manufacturing. Leading chipmakers like TSMC and Samsung are strong drivers for growth[2].
• AI Demand: ASML's latest earnings report confirmed significant AI demand, driving market confidence in chip equipment manufacturers. The CEO also mentioned no signs of a slowdown in demand for AI-focused chips[3].
• Financial Health: ASML maintains robust financial health, highlighted by a 51.2% gross profit margin and moderate debt levels, earning it a "GOOD" overall financial health score[5].

Salesforce

While there's no specific information regarding the current price target or reasons for a bullish outlook directly related to Salesforce in the given sources, it's worth noting that Salesforce is known for its strong performance in the CRM (Customer Relationship Management) sector and integration of AI technologies. Be sure to check out the most recent analyst reports and financial news articles focused on Salesforce for the most up-to-date information.

Investors should closely consider the potential for significant growth in Alibaba Group Holding's (BABA) AI cloud segment, which has shown positive growth for over five consecutive quarters. Analysing the Affordable valuation and promising revenue growth of this mega-cap AI stock could be beneficial for those interested in investing in the finance sector.

ASML Holding NV's (ASML) dominance in the market for AI chips, driven by its pioneering EUV technology, has caught the attention of analysts like Bernstein. Investors might want to consider the impact of ASML's premium valuation on potential gains when thinking about investing in this AI-focused company.

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