2 Beaten-Down Artificial Intelligence (AI) Stocks That Will Surge at Least 40% Over the Next Year, According to Wall Street
Publish Date: 2026-07-07 18:20:00
Source Domain: www.theglobeandmail.com
Here’s a summary of the article focusing on 4 key points:
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Volatility and Opportunity in AI Sector: The artificial intelligence (AI) sector has seen significant variability in performance, with some large players struggling while others, particularly those focusing on AI supply chain components (like memory and GPUs), have performed well. This presents an opportunity for analysts and investors to identify undervalued AI stocks.
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Beaten-down AI Stocks with Upside Potential: Despite recent declines, two AI companies, Palantir Technologies and Microsoft, are expected to see substantial gains. Palantir, which has fallen over 24%, is anticipated to surge by nearly 43% based on Wall Street analysts’ projections. Meanwhile, Microsoft is also projected to rise by over 45%, showing confidence in its diversified tech businesses and cloud services.
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Changing Dynamics in AI Investments: The market dynamics for AI investing have shifted significantly from previous years where any AI component was sufficient for stock growth. Now, specific areas of AI, such as supply chain bottlenecks, are driving the market, indicating a more nuanced approach to AI investments.
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Microsoft’s Robust Cloud Business: Despite concerns about Microsoft’s AI assistant Copilot and its office tool suite, Microsoft’s robust cloud business, Microsoft Azure, remains a major growth driver. The company’s diversified tech offerings and strong cloud revenue make it a resilient investment compared to other tech stocks.
