Wall Street Analysts tipping 2 AI Stocks to Soar

As Goldman Sachs predicts that the growth of AI will bode well for software and IT Service companies, analysts are expecting UiPath and Tesla to make significant gains in the next 12 months.

Morgan Stanley analyst Kevin Weiss predicts that UiPath could be trading at $35 per share by May 2025, a 180% upside on its current price of $12.50. However, Trevor Jennewine of The Motley Fool advises caution and patience. Uipath is a market leader in robotic process automation (RPA), has successfully integrated AI capabilities into its platform, and has also been recognised for its document mining, analytics, and process mining software. Yet, despite reporting a 16% net income increase at the end of the first fiscal quarter, management lowered their full-year projection to just 8% due to inconsistent sales and a 'difficult macroeconomic environment.’ As a result, the stock plunged 35% and dipped another 7% after the company announced a workforce downsize. Wall Street predicts an annual 11% growth through to January 2027. With the market for RPA expected to swell by 40% annually through 2030, there is plenty of room for UiPath to exceed expectations.

Tesla has been predicted to hit a share price of $2,600 per share by 2029, by Ark Invest analysts – a 930% increase from its current price of $252.50. This prediction is based on Tesla successfully capitalising on its full self-driving software (FSD). Considered a natural progression of AI, as market leader holding a 17.2% share in sales of battery electric vehicles and, due to having more sensory-equipped vehicles on the road, Tesla has a significant data advantage, collecting 110 times faster than its nearest competitor, Waymo. Adam Jonas of Morgan Stanley believes the size of the upside will be dependent on Tesla’s transition from auto-manufacturer to software and services provider. While Jennewine believes 930% may be an ambitious estimate, even the most lenient predictions expect a 15% revenue growth through 2026, with Ark predicting a revenue growth of 55% through 2029.

(Sources: fool.com, uipath.com, forbes.com)