We recently compiled a list of the 10 High-Flying AI Stocks on News and Ratings. In this article, we are going to take a look at where Palo Alto Networks, Inc. (NASDAQ:PANW) stands against the other AI stocks.
Goldman Sachs raised its target price for Chinese stocks today. They estimate that AI adoption could significantly boost earnings growth and possibly bring in $200 billion of inflows. DeepSeek’s AI breakthrough has led these tech stocks on a strong rally, reigniting investor interest and optimism in Chinese technologies and capabilities. The firm raised its 12-month target price for China’s CSI300 to 4,700 from 4,600. It also raised its price target for MSCI China to 85 from 75.
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The Chinese startup may be all the rage for Chinese stocks, but some countries are exercising caution all the same. In the latest news, South Korea’s data protection authority has suspended new downloads of the Chinese AI app from DeepSeek. This is after DeepSeek acknowledged failing to take into account some of the agency’s rules on protecting personal data. The Personal Information Protection Commission (PIPC) has notified that the app service will be resumed once improvements are made according to the country’s privacy law. Even though DeepSeek’s web service remains accessible in the country, new downloads of the app are restricted.
Previously, the US Navy also instructed its members to avoid using artificial intelligence technology from China’s DeepSeek. According to the Navy, DeepSeek’s AI was not to be used “in any capacity” due to “potential security and ethical concerns associated with the model’s origin and usage”. In a similar move, Italy’s data protection authority, the Garante, has also ordered DeepSeek to block its chatbot in the country. This is because it failed to address the regulator’s concerns over its privacy policy.
Notably, BBC reported that the the first member of a Western government to raise privacy concerns about DeepSeek has been Australia’s science minister, Ed Husic. Husic has raised “data and privacy management” concerns over DeepSeek.
“I would be very careful about that, these type of issues need to be weighed up carefully”.
DeepSeek has failed to respond to requests for comment on these issues.
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A cutting-edge computer lab full of IT experts monitoring the security of multiple systems.
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 February 17, Saiyi He from CMB International Securities maintained a “Buy” rating on the stock with the associated price target lowered to $230.30. The firm noted Palo Alto Networks, Inc. (NASDAQ:PANW)’s robust financial performance and strategic positioning as a reason for the buy rating. In particular, revenue for the company increased 14.3% year-over-year for the second quarter of fiscal year 2025.
This growth has been driven by optimized sales and marketing expenses along with increasing demand for Palo Alto Networks, Inc. (NASDAQ:PANW)’s security solutions in the AI sector. In particular, its Next-Generation Security products have grown substantially, especially its AI-powered SASE and Prisma Cloud offerings. By focusing on platformization, the company has secured large deal wins which will likely lead to market share expansion and margin improvement.
Overall PANW ranks 4th on our list of the high-flying AI stocks on news and ratings. While we acknowledge the potential of PANW as an investment, our conviction lies in the belief that some 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.
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Disclosure: None. This article is originally published at Insider Monkey.
