10 AI Stocks That Will Skyrocket

7. Varonis Systems, Inc. (NASDAQ:VRNS)

Average Upside Potential: 35.3%

Number of Hedge Fund Holders: 38

Varonis Systems, Inc. (NASDAQ:VRNS) offers software products and services that continuously discover and classify critical data, remediate exposures, and detect advanced threats with AI-powered technology. The successful integration of GenAI into the company’s product suite can be a significant growth driver. With companies increasingly seeking AI-powered security solutions, Varonis Systems, Inc. (NASDAQ:VRNS)’s GenAI offering can differentiate itself in the market, resulting in increased customer acquisition and higher-value contracts.

Also, the increased adoption of MDDR services can offer a steady stream of recurring revenue and deepen customer relationships, resulting in faster ARR growth and improvement in customer retention rates. Varonis Systems, Inc. (NASDAQ:VRNS)’s strong position in data security, together with the higher prioritization of cybersecurity investments by organizations, continues to create a positive market environment. Overall, the growth in the AI industry will also support Varonis Systems, Inc. (NASDAQ:VRNS)’s growth prospects considering higher reliance on data, increasing demand for automation and intelligent analytics, and requirement for advanced threat detection. With more companies adopting AI, it is expected that they will manage and generate increasingly complex and large data sets. Therefore, the need for strong data governance, security, and compliance solutions is projected to grow, offering an enhanced market for Varonis Systems, Inc. (NASDAQ:VRNS)’s products.