In this article, we will take a look at the 12 best promising growth stocks according to Wall Street Analysts.
Strategist Believes the Street is Underestimating the Tech Sector
The new regulatory environment has the technology sector eyeing prominent growth opportunities in 2025 and beyond. Big Tech is set to release earnings next week and investors are excited to see how the group performed in the last quarter. On January 24, Dan Ives, managing director and global head of technology research at Wedbush Securities, appeared in an interview on Morning Brief at Yahoo Finance to share his 2025 outlook for the tech sector.
Ives suggested that the Street is underestimating the potential of Big Tech and advises investors to “grab popcorn” for the earnings week ahead. He also shared his optimism towards the billion-dollar investments made by the group before 2025 and claimed that the “fourth industrial revolution” has just begun. He also suggested that AI spending by companies heavily depends on the use cases for the company, and emphasized the unique selling point for each of the names in mega-cap tech names. Ives stated that the ability to monetize stall bases has been the crucial factor driving the growth among tech names, which happens to mimic what the hyperscalers have done.
Ives emphasized that investments in artificial intelligence are now going to play out on the consumer side and remained confident that Big Tech is a step ahead in terms of the AI journey to monetization. He believes that seeing the return on investment play out, the Street is underestimating the growth in the tech sector, not just for the earnings next week but for 2025 as a whole.
He also suggested that the regulatory environment is drastically changing especially in favor of the autonomous vehicles market and expects a massive year ahead for the segment and stocks associated with self-driving technologies and autonomous vehicle driving.
The year ahead looks super solid for companies in the growth sector, namely artificial intelligence, autonomous vehicles, biotechnology, fintech, and software. While most of it is because of the efforts made by these names over the past year, the promising regulatory environment is going to boost the position of these stocks significantly. That said, let’s take a look at the 12 most promising growth stocks according to Wall Street analysts.
Stocks
Our Methodology
We used Finviz to look for companies operating in growth sectors such as technology, financials (fintech), biotech, and communication services. We only focused on companies with a market cap of at least $2 billion. We then examined the analyst upside surrounding 25 stocks and picked the 12 stocks with the highest upside as of January 23, 2025. We have also included the hedge fund sentiment around each stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Most Promising Growth Stocks According to Wall Street Analysts
12. Uber Technologies, Inc. (NYSE:UBER)
Analyst Upside as of January 23, 2025: 32%
Number of Hedge Fund Holders: 136
Uber Technologies, Inc. (NYSE:UBER) is one of the most promising growth stocks according to Wall Street analysts. The ride-hailing company is expected to become a completely electric and zero-emission platform by 2040. In addition to that, over time the company has launched EV-only ride options to more markets, AI assistants to help drivers with EV-related questions, and mentorship programs. In 2025, UBER plans to transition hundreds and thousands of drivers to electric vehicles and intends to make 80% of restaurant deliveries more environmentally friendly.
On January 16, Ken Gawrelski, an analyst at Wells Fargo, maintained a buy rating on the stock and set a price target of $90. He set the buy rating because of the company’s strategic position in the autonomous vehicle market. In addition to that, Gawrelski emphasized that UBER could gain a significant edge in the AV market if Tesla’s full self-driving technology proves to be safe and reliable. He also added that Uber Technologies, Inc. (NYSE:UBER) has been making significant advancements in its capital allocation strategy, which may be more promising due to a supportive regulatory environment.
Uber Technologies, Inc. (NYSE:UBER) is expected to benefit from the autonomous driving wave and the easing of regulations. Analysts are also bullish on the stock and their median price target implies an upside of 32% from current levels.
11. Dell Technologies Inc (NYSE:DELL)
Analyst Upside as of January 23, 2025: 35%
Number of Hedge Fund Holders: 60
Dell Technologies Inc (NYSE:DELL) is a pioneer in producing desktops, servers, storage solutions, monitors, and gaming products. In the fiscal third quarter of 2025, Dell (NYSE:DELL) delivered $24.4 billion in revenue. Of this, its infrastructure solutions and client solutions segment posted a combined revenue of $23.5 billion, up by 13% year-over-year.
In addition to that, the demand for AI-optimized servers remained high, with orders reaching $3.6 billion in FQ3. The company also reported prominent growth across all customer types. Dell Technologies Inc (NYSE:DELL) also celebrated an AI backlog of $4.5 billion as of Q3. AI server shipments totaled $2.9 billion during the same period.
On January 10, Erik Woodring, from Morgan Stanley maintained a buy rating on DELL with a price target of $154. The analyst believes that the company is well-positioned in the AI server market and expects its traditional hardware market to also accelerate in 2025. In addition to that, the analyst added that DELL has committed to returning over 80% of its cash flow to shareholders, which is expected to grow incrementally through 2027.
10. Micron Technology, Inc. (NASDAQ:MU)
Analyst Upside as of January 23, 2025: 38%
Number of Hedge Fund Holders: 107
Micron Technology’s (NASDAQ:MU) primary offerings include memory and storage products for computers, consumer electronics, artificial intelligence use cases, servers, and automobiles. Earlier in October 2024, MU was added to NVIDIA’s recommended vendor list for its new data center SSDs, and in November, the company introduced the world’s fastest SSD, with efficiency ramped up to 67%.
Similarly, in the first week of January, the company introduced expansions to its memory and storage portfolio, emphasizing its commitment to innovation and improved performance. More recently, on January 8, the company announced a $7 billion investment spread across several years to meet the surging AI data center demand. The company is developing an advanced packaging facility near its facilities in Singapore. The facility is expected to begin operations in 2026 and will strengthen the semiconductor ecosystem in Singapore.
Micron Technology, Inc. (NASDAQ:MU) is shifting its complete focus to meeting the demands of artificial intelligence and data center customers, making it a solid choice for investors in 2025 and beyond. Analysts are also bullish on the stock with their median price target representing an upside of 38% from current levels.
9. Alibaba Group Holding Limited (NYSE:BABA)
Analyst Upside as of January 23, 2025: 39%
Number of Hedge Fund Holders: 115
Alibaba Group Holding Limited (NYSE:BABA) is a technology and internet retail company that operates e-commerce sites that serve consumers and small business owners. In addition to e-commerce, Alibaba Group (NYSE:BABA) is also involved in cloud computing, logistics, digital media, and entertainment.
On January 24, Thomas Chong, an analyst at Jefferies maintained a buy rating on BABA with a price target of $144. Chong gave a buy rating on the stock because of Alibaba’s growing efforts in driving tech advancements across several industries. In addition to that, the analyst also expects BABA’s efforts in product development to return solid revenue growth and cost synergies in 2025 and beyond. Overall, Chong remained optimistic about the company’s efforts in innovation. Similarly, on January 21, analyst firm, Bank of America Securities, assigned a buy rating on the stock with a price target of $117.
While the company has a growing cloud business, driven by its developments in AI, Alibaba’s (NYSE:BABA) strength lies in the uniqueness and efficiency of its e-commerce platforms, making it one of the most promising growth stocks to buy according to Wall Street analysts.
8. Coupang, Inc. (NYSE:CPNG)
Analyst Upside as of January 23, 2025: 41%
Number of Hedge Fund Holders: 56
Coupang, Inc. (NYSE:CPNG) is a technology company that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under the brands Coupang, Coupang Eats, and Coupang Play, to name a few. The company leverages technology to predict unexpected spikes in demand, allowing it to meet customer demand no matter the conditions. In addition to that, Coupang’s (NYSE:CPNG) proprietary robots can manage and sort orders in seconds, without having to carry and lift items.
In the third quarter of 2024, CPNG generated $7.9 billion in net revenues, up by 27% year-over-year. In addition to that, net income was worth $64 million and gross profit was up by 45% year-over-year. Its product commerce revenue made up most of the revenue, reaching $6.9 billion, up by 16% year-over-year. Similarly, active customers for its product commerce segment hit 22.5 million, up by 11% from the same period in 2023.
Through its innovations, CPNG has managed to deliver cost savings, reduce wastage, and predict demand. This explains why analysts are bullish on the stock with their median price target representing an upside of 41% from current levels.
Appalaches Capital stated the following regarding Coupang, Inc. (NYSE:CPNG) in its Q3 2024 investor letter:
“A new core holding of the portfolio that may appear confusing is Coupang, Inc. (NYSE:CPNG). Coupang mainly provides a first-party marketplace in South Korea and Taiwan that is similar to Amazon here in the U.S. Coupang additionally has other digital services such as Coupang Play (streaming), Coupang Eats (food delivery), and Coupang Pay (payments). Coupang has a dominant position in South Korean e-commerce, with nearly half of the population represented as an active customer on the platform. At first glance, the company appears marginally profitable and very expensive against current earnings, so it certainly appears to be an outlier against the rest of the portfolio.”
7. Adobe Inc. (NASDAQ:ADBE)
Analyst Upside as of January 23, 2025: 43%
Number of Hedge Fund Holders: 123
Some of Adobe Inc’s (NASDAQ:ADBE) major products include Adobe Firefly, Adobe Express, Acrobat AI Assistant, and Adobe GenStudio. In October 2024, Adobe Inc (NASDAQ:ADBE) launched the Firefly Video Model in beta, expanding its family of creative generative AI models, safe for commercial use. Similarly, in December 2024, the company announced a partnership with Box, Inc. to shape the way digital media is created and used.
Similarly, in an exciting update, on January 22, Adobe Inc. (NASDAQ:ADBE) announced innovations to its AI tools and a $5 million investment in its Adobe Film and TV Fund to support underprivileged creators and filmmakers. Speaking of its innovations, ADBE unveiled new features in Adobe Premiere Pro, After Effects, and Frame.io to improve post-production and reduce the time spent on videos. Overall, in the fiscal fourth quarter of 2024, the company’s digital media segment grew its revenue by 12%.
The company holds precedence in the creative industry because of its exemplary tools and features. In addition to that, investors are particularly interested to see how its investments in AI play out in 2025 and beyond.
Polen Capital’s Polen Focus Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q3 2024 investor letter:
“We added to several existing positions in the quarter including Adobe Inc. (NASDAQ:ADBE), Workday, Shopify, MSCI, and Paycom Software. We feel Adobe is poised for re-accelerating revenue and earnings growth partially due to the monetization of its Firefly GenAI product embedded in its creative software.”
6. PDD Holdings Inc. (NASDAQ:PDD)
Analyst Upside as of January 23, 2025: 44%
Number of Hedge Fund Holders: 78
PDD Holdings Inc. (NASDAQ:PDD) is a multinational e-commerce group that owns Temu and Pinduoduo, two online retail sites. Temu is one of the fastest-growing e-commerce platforms in the world, with a 20% market share in its home country. The company has a mission to bring more and more individuals and entities into the digital economy. PDD celebrates a solid network of sourcing, logistics, and fulfillment, all of which support its operations.
In the third quarter of 2024, PDD Holding’s total revenue reached $14.16 billion, a 44% increase year-over-year. The company attributes its growth in revenues to its online marketing and transaction services. PDD saw a moderation in revenue growth and attributed such to the growing competition in the e-commerce sector. The company’s selling point is its ability to offer services in remote areas through designated logistical support programs. Overall, PDD Holdings Inc. (NASDAQ:PDD) is optimistic for the future and eyes long-term growth driven by innovation in its supply chain capabilities and an emphasis on product quality.
PDD Holdings (NASDAQ:PDD) boasts a solid growth opportunity as it expands its offerings to more countries across the globe. This explains why analysts are bullish on the stock and their median price target represents an upside of 44% from current levels.
5. MicroStrategy Incorporated (NASDAQ:MSTR)
Analyst Upside as of January 23, 2025: 47%
Number of Hedge Fund Holders: 25
MicroStrategy Incorporated (NASDAQ:MSTR) is a bitcoin treasury and business intelligence company that provides business intelligence, mobile software, and cloud-based software services to businesses. The company offers convenient data visualization and advanced predictive analytics for all kinds of businesses. By the end of 2024, the company had forged partnerships, enhanced its position in the stock market, and optimized its offerings further.
Recently, on January 9, MicroStrategy Incorporated (NASDAQ:MSTR) formed a partnership with STACKIT to produce a sovereign data cloud for AI-backed business intelligence. The partnership will allow customers to fully benefit from MicroStrategy AI and allow users to access BI assigned from any application. In addition to that, customers will also be allowed to benefit from a wide array of MSTR’s analytic tools integrated with AI-backed workflows to develop and manage AI applications at a larger scale.
The stock also garnered significant attention recently for its purchase of Bitcoin and supportive government regulations for the use of cryptocurrencies and other digital assets. Analysts are also bullish on the stock and their median price represents an upside of 47%.
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Analyst Upside as of January 23, 2025: 49%
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor and IT company that produces accelerators capable of managing complex AI workloads. Over the past few months, AMD launched advanced processors for the next generation of PCs and high-performing computing solutions for the AI computing demand. For instance, on January 6, AMD announced the launch of its first commercial Dell PCs that run on its AI processors. The new processors offer improved efficiency, privacy, personalization, and connectivity coupled with cutting-edge AI compute and advanced business productivity tools.
On January 22, Thomas O’Malley, an analyst at Barclays shared his stance on AMD. The analyst highlighted that the stock has been struggling for the past year. However, O’Malley believes that AMD’s investments in AI will allow the company to achieve year-over-year growth of a few billion dollars for MI series accelerators in 2025. He also added that the company will have to wait a little longer to garner opportunities for additional market share. Despite that, the analyst gives an overweight rating on the stock with a price target of $140, adding that the stock may potentially gain 12% in the coming months.
AMD attributes its growth to its data center products and ever-growing demand for its Ryzen PC processors. The company is emerging in the AI and technology sector as a leader in the production of accelerators and processors.
3. MongoDB, Inc. (NASDAQ:MDB)
Analyst Upside as of January 23, 2025: 53%
Number of Hedge Fund Holders: 49
MongoDB, Inc. (NASDAQ:MDB) is a software company that develops and provides commercial support for the database engine, MongoDB. As part of its latest release, MongoDB 8.0 offers a 36% higher throughput, horizontal scaling, improved queryable encryption, and faster speed. In addition to that, its AI platform, Atlas, is the company’s defining feature. The tool is growing rapidly due to its unmatched capabilities in semantic search, recommendation engine development, data detection, and context for generative AI applications.
On January 22, the research team at Morgan Stanley shared their bullish outlook on the software industry, claiming that MDB is set to benefit from the new software cycle. The research team suggested that the software industry is now emerging from three years of “organization” and “digestion.” In addition to that, the wave of generative AI offers greater potential to software. MongoDB, Inc. (NASDAQ:MDB) is a top pick in the software category for Atlas, its data management capabilities, and sound financial performance.
In the third quarter of 2024, MongoDB, Inc. (NASDAQ:MDB) grew its total revenue by 22% and revenue from its platform, Atlas, by 26% year-over-year. At the end of the third quarter of 2024, 49 hedge funds were bullish on the stock.
2. uniQure N.V. (NASDAQ:QURE)
Analyst Upside as of January 24, 2025: 58%
Number of Hedge Fund Holders: 24
With 24 hedge funds bullish on the stock at the close of Q3 2024, uniQure N.V. (NASDAQ:QURE) ranks second on our list of the most promising growth stocks to buy. The emerging leader in gene therapy is focused on liver and nervous system disorders. Its modular platform sets it apart from its competitors as it promises significant cost savings and an efficient mode of operations. Analysts are also bullish on the stock and their median price target of $25 implies an upside of 58% from current levels.
On January 7, Luca Issi, an analyst at RBC Capital raised his price target on QURE to $24 from $20, keeping an outperform rating on the stock. The analyst is bullish on the biotechnology industry and eyes 2025 with sheer optimism as a large number of product launches are already in place. Issi also favored the structure and set-up of uniQure N.V. (NASDAQ:QURE), explaining his bullish outlook on the stock.
QURE boasts a solid growth opportunity, with its revenue growing by $0.8 million in Q3 2024 from the same quarter in 2023. To support its growth strategy, in the last quarter of 2024 alone, uniQure N.V. (NASDAQ:QURE) processed several approvals and announced trials for its novel drugs.
1. AST SpaceMobile, Inc. (NASDAQ:ASTS)
Analyst Upside as of January 24, 2025: 104%
Number of Hedge Fund Holders: 18
AST SpaceMobile, Inc. (NASDAQ:ASTS) is one of the most promising growth stocks to buy according to analysts. The company designs and manufactures satellites with a mission to connect mobile phones with cellular broadband satellite networks from anywhere in the world. The company ended 2024 on a super good note, launching and deploying its first five BlueBird satellites.
ASTS also forged partnerships with companies such as Google, Verizon, AT&T, and Vodafone to accelerate its mission. For example, on December 9, 2024, ASTS forged a collaborative agreement through 2034 with the telecommunications giant, Vodafone. The partnership will allow Vodafone to offer space-backed cellular services in its home and partner markets. Vodafone is also a three-time investor in AST SpaceMobile, Inc. (NASDAQ:ASTS), explaining that the company has solid backing to support its journey.
AST SpaceMobile, Inc. (NASDAQ:ASTS) is revolutionizing the way people connect with each other and to realize its goal, the company has been connecting with mobile network operators, subscribers, and individuals who are residing in areas with little to no network access. 18 hedge funds held stakes in the firm at the end of the third quarter of 2024.
While we acknowledge the potential of ASTS to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ASTS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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