10 AI News Making Waves on Wall Street

6. Palo Alto Networks, Inc. (NASDAQ:PANW)

Number of Hedge Fund Holders: 64

Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity. On February 10^th, TD Cowen analyst Shaul Eyal maintained their bullish stance on the stock, giving a “Buy” rating. Eyal’s buy rating stems from several factors, such as a major demand rebound for Palo Alto’s next-generation security solutions. Recent results from industry peers that reflect a strong market trend in the firewall refresh cycle have led to this optimism. Eval also believes that the company may benefit from increased hardware firewall demand which will add to its product revenue growth. Flextronics, Palo Alto’s outsourced production partner, has also witnessed growth in its data center business, supporting the demand surge. Federal spending uncertainties due to US administration changes have led to uncertainties, but Eval finds overall enterprise demand robust. Moreover, federal revenue, which accounts for a small portion of Palo Alto Networks’ total revenue, may decline but will be offset by enterprise customer gains.