14 AI Stocks Catching Wall Street’s Attention

12. 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 April 10, HSBC upgraded the stock to “Hold” from “Reduce” with a price target of $156.00. The rating upgrade follows resilient cybersecurity demand amid macroeconomic uncertainty and a reasonable valuation.

The firm considers cybersecurity to be “recession resilient,” explaining that spending on security most likely holds up even during economic slowdowns. The analyst wrote that past evidence is indicative of how revenue growth at key cybersecurity firms remains immaterially impacted by economic growth changes.

In other news, a report by Globes has revealed that Palo Alto is eyeing Protect AI, a Seattle-based startup offering AI scanning, large language model security, and generative AI red teaming, for acquisition. The report noted that Palo Alto may acquire ProtectAI for around $650 million to $700 million.