12 Cheap AI Stocks to Buy in 2025

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

Analyst Upside (as of January 27): 124.51%

No. of Hedge Fund Holders: 64

Palo Alto Networks, Inc. (NASDAQ:PANW) is a leading cybersecurity firm that offers a comprehensive platform and services backed by AI. On January 22, the company launched Quantum Random Number Generator (QRNG) Open API framework, an AI solution that will empower organizations to protect their systems against quantum security risks. QRNG will utilize AI, ML, and deep learning in quantum computing to enhance its solution offering.

Palo Alto Networks, Inc. is aggressively investing in AI, and over the last ten years, it has developed into a more complete security platform, adding ML and AI capabilities into a wide range of cloud-based products. The company’s latest deal of $100 million plus with the U.K. Home Office reflects Palo’s growing influence.

On January 21, Morgan Stanley analyst Hamza Fodderwala rated PANW an Overweight stock, lifting its price target from $223 to $230 per share. In addition to Morgan Stanley maintaining an overweight rating on PANW, Scotiabank also raised its price target on the stock from $200 to $225 with a Sector Outperform rating. Analysts see Palo Alto Networks, Inc. (NASDAQ:PANW) to outperform considering its growing business as it continues to land big deals and demonstrate a strong position in the cybersecurity market.