15 Best Big Tech Stocks to Buy According to Analysts

1. Palo Alto Networks Inc. (NASDAQ:PANW)

Upside potential: 130%

Number of hedge funds: 64

Palo Alto Networks Inc. (NASDAQ:PANW) is a leading cybersecurity company offering a comprehensive suite of security and zero-trust solutions designed to shield organizations from cyber threats. The company provides advanced firewalls, cloud-based security services, and endpoint protection, enabling businesses to secure their networks, applications, and data across various environments, including on-premises, cloud, and hybrid infrastructures.

With a strong emphasis on innovation, Palo Alto Networks Inc. (NASDAQ:PANW) incorporates artificial intelligence, machine learning, and automation into its security offerings to enhance threat detection and response capabilities. Its market capitalization currently stands at approximately $121 billion, underscoring its significant position in the cybersecurity industry. Palo Alto Networks Inc. (NASDAQ:PANW) aims to capture a larger share of the cybersecurity market, which is projected to grow substantially in the coming years. According to a report published by Statista in June 2024, the estimated cost of cybercrime may reach $15.6 trillion by 2029, up from $9.2 trillion in 2024. Thus, the company is well-positioned to benefit from the rising demand for cybersecurity solutions, driven by the increasing frequency and sophistication of cyberattacks.

On January 21, 2025, an analyst from Morgan Stanley raised the price target for Palo Alto Networks Inc. (NASDAQ:PANW) from $223 to $230 and maintained an Overweight rating. The analyst views the current valuation as a favourable entry point, given recent underperformance, and anticipates potentially larger deals and stronger market share gains for the company. The analyst also believes that the stock could double in 4-5 years, driven by platform deals and increased market share.

While we acknowledge the potential of PANW to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PANW 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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