10 AI Stocks Taking Wall Street by Storm

7. Keysight Technologies, Inc. (NYSE:KEYS)

Number of Hedge Fund Holders: 36

Keysight Technologies, Inc. (NYSE:KEYS) is a global technology company that provides electronic design and test solutions to various sectors. On December 16, JP Morgan analyst Samik Chatterjee upgraded the electronics test equipment maker to “Overweight” from Neutral and raised its price target to $200 from $170. According to the analyst, the company’s end markets are going to recover in 2025. These markets had been facing challenges throughout the year due to factors such as higher capital costs, slower industry growth, and inventory digestion in certain markets. The analyst noted that customer demand will expand beyond the company’s current AI-related focus and investments in the future.

The company’s AI-driven technologies include its AI data center test platform for validating AI/ML infrastructure performance by simulating realistic, high-scale AI workloads and Eggplant Test Automation which is an AI-driven software test automation solution. Additionally, the recent acquisition of Spirent Communications is also likely to result in “robust” organic incremental margins. The deal is anticipated to be concluded in the first half of Keysight’s fiscal 2025.

“We envision a broadening out of the demand drivers beyond the narrow focus and investment on AI, which when put against the backdrop of lower interest rates is likely to be driven by higher spending appetite from customers that have been cautious over the last year”.

-JP Morgan analyst Samik Chattarjee