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3 No-Brainer AI Stocks to Buy Before They Soar, According to Wall Street

newsfeedback@fool.com (Keithen Drury)
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⚡ Quantum Brief
Wall Street analysts project three AI stocks—Nvidia, Nebius, and Microsoft—to surge by 47-57% within 12 months, citing strong fundamentals despite recent price dips. Nvidia, the world’s largest company by market cap, reported 73% YoY revenue growth in Q4 2026 and forecasts 77% growth next quarter, yet trades 57% below its $270 average price target. Nebius, an Nvidia-backed AI data center operator, expects revenue to jump from $1.25B to $7-9B by late 2026, with analysts targeting a 47% upside to $167 per share. Microsoft’s stock dropped 24% YTD despite 17% revenue growth and 60% EPS gains in Q2 2026, trading at a decade-low P/E ratio of 24, with a $595 price target (55% upside). All three stocks reflect a disconnect between strong AI-driven performance and current valuations, presenting what analysts call "no-brainer" buying opportunities before expected rebounds.
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By Keithen Drury – Mar 27, 2026 at 7:55PM ESTKey PointsNvidia's stock price has recently lagged its business performance.Nebius expects monster revenue growth this year. Microsoft's stock is trading near its lowest P/E ratio in years. Wall Street analysts commonly offer one-year price projections on stocks they cover. While any individual analyst's forecast for where a stock will be a year from now could be way off in either direction, looking at the average of all those price targets ought to give investors a good idea of where the market in the aggregate thinks the stock could be headed. It also demonstrates whether the community is generally bullish or bearish on a stock, which is why that price target data can be a great tool for those in search of promising investment opportunities. Right now, Wall Street analysts on average view Nvidia (NVDA 2.13%), Nebius (NBIS 4.76%), and Microsoft (MSFT 2.51%) as having massive upsides. Image source: Getty Images.

Nvidia With Nvidia already the largest company in the world by market cap, you may be inclined to assume that its upside would be fairly limited, but that's not the case. Its sales are still growing at a rapid pace, and demand for its AI computing units has proven insatiable. During its fiscal 2026 fourth quarter, which ended Jan. 25, Nvidia's revenue rose 73% year over year, and management guided for 77% growth in fiscal 2027's first quarter. Few companies ever deliver growth at those paces, yet Nvidia is still doing it despite its already-massive revenues. ExpandNASDAQ: NVDANvidiaToday's Change(-2.13%) $-3.65Current Price$167.59Key Data PointsMarket Cap$4.2TDay's Range$167.01 - $170.9652wk Range$86.62 - $212.19Volume6.9MAvg Vol177MGross Margin71.07%Dividend Yield0.02% The average 12-month price target on the stock is about $270. Considering that Nvidia is trading at $175 right now, that would be a rise of about 57%. That's why I think it's a no-brainer buy right now. Nebius Nebius is actually a company that Nvidia is currently invested in -- a vote of confidence from the giant chipmaker. The AI data center operator has a market cap just below $30 billion -- less than 1% of Nvidia's value -- but it's doing big things as a company. Nebius has a deal with Nvidia that gives it access to the chipmaker's new products despite a tight market for its hardware. The ability to supply servers powered by Nvidia's GPUs has made it a go-to partner for several AI hyperscalers that need more capacity, including Microsoft and Meta Platforms (META 3.98%). Nebius is growing rapidly: Management expects its annual run rate to increase from $1.25 billion at the end of 2025 to between $7 billion and $9 billion by the end of 2026. ExpandNASDAQ: NBISNebius GroupToday's Change(-4.76%) $-5.05Current Price$100.92Key Data PointsMarket Cap$27BDay's Range$100.27 - $106.1552wk Range$18.31 - $141.10Volume550KAvg Vol15MGross Margin-765.63% The current average stock price target on Nebius is $167, about 47% higher than today's levels. That would be a solid gain for a one-year investment, and I think it showcases that Nebius is worth an investment. Microsoft Microsoft has gotten off to a rough start in 2026. It's down about 24% year to date. That decline is a bit of a head-scratcher, as the company delivered excellent results for its most recent quarter. In its fiscal 2026 Q2, which ended Dec. 31, revenue rose 17% year over year while earnings per share climbed 60%, in part thanks to a rise in the value of its OpenAI investment. Its non-GAAP earnings, which stripped out the effect of that gain, rose 24%, showcasing strength across the board. Despite this, Microsoft's stock continued to decline and now sits at a price-to-earnings ratio the company has seldom seen in the past decade. MSFT PE Ratio data by YCharts. Wall Street analysts are similarly questioning Microsoft's decline. Their average price target on the stock is $595, 55% above today's level. I think a P/E ratio of about 24 offers about as great an entry point for Microsoft's stock as investors can ask for. Take advantage of this sale price to load up on it while you still can. Read NextMar 27, 2026 •By Howard SmithStock Market Today, March 27: Nvidia Slides as Valuation Drops Below S&P 500 on Forward EarningsMar 27, 2026 •By Keithen Drury1 No-Brainer Artificial Intelligence (AI) Stock That Will Skyrocket By the End of 2026Mar 27, 2026 •By Adam SpataccoIf I Had $10,000 to Invest in Artificial Intelligence (AI) Right Now, I'd Split It Between These 3 StocksMar 27, 2026 •By Geoffrey Seiler8 Stocks I'd Buy if I Were Starting a Tech Portfolio From Scratch TodayMar 26, 2026 •By Daniel SparksNvidia Stock Has Gone Nowhere for 6 Months.

What Will It Take for Shares to Go Higher?Mar 26, 2026 •By Leo Sun3 Reasons Broadcom Could Be a Better AI Play Than NvidiaAbout the AuthorKeithen Drury is a contributing Motley Fool technology analyst covering AI, semiconductors, cybersecurity, and SaaS stocks. In addition to The Motley Fool, Keithen is a mechanical engineer and has held roles at Honeywell and smaller industrial companies like Brand Hydraulics and Lincoln Industries. He holds a bachelor’s degree in mechanical engineering from Dordt University.TMFTripleOptionStocks MentionedNvidiaNASDAQ: NVDA$167.59(-2.13%)-$3.66MicrosoftNASDAQ: MSFT$356.77(-2.51%)-$9.20Meta PlatformsNASDAQ: META$526.14(-3.91%)-$21.40Nebius GroupNASDAQ: NBIS$100.82(-4.86%)-$5.15*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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