2 Artificial Intelligence (AI) Stocks to Buy Before They Soar 39% to 77%, According to Wall Street Analysts

The AI revolution is reshaping industries, and Wall Street analysts are bullish on select stocks poised to capitalize on this trend. Among the pack, two companies—Oracle (NYSE: ORCL) and Confluent (NASDAQ: CFLT)—have garnered significant attention for their robust growth trajectories and price targets suggesting 39% to 77% upside. Both firms are leveraging AI to drive cloud infrastructure, data management, and enterprise solutions, positioning them as leaders in a $15.7 trillion market opportunity.

Oracle: Cloud Powerhouse with a 38.5% Upside

Oracle’s 12-month price target of $186—a 38.5% premium to its current price—reflects its dominance in cloud infrastructure, fueled by surging AI demand. In Q3 2025, its cloud revenue jumped 63% year-over-year, while its RPO (Remaining Performance Obligations) hit a record $130 billion, signaling strong future revenue. Analysts project 15% revenue growth in fiscal 2026 and 20% in fiscal 2027, driven by investments in expanding cloud capacity.

Why Now?
Oracle’s hybrid cloud model caters to enterprises seeking scalable AI solutions without fully migrating to public clouds. Its partnership with generative AI firm SambaNova and investments in low-latency AI tools are further boosting adoption.

Risks:
Competition from AWS and Microsoft Azure remains fierce. A potential economic downturn could slow enterprise spending, though Oracle’s diversified client base mitigates this risk.

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Confluent: Real-Time Data Leader with 76.7% Upside

Confluent’s $38 price target (a 76.7% gain) hinges on its undervalued PEG ratio of 0.52, suggesting strong growth relative to valuation. The company’s AI tools, including real-time data streaming and generative AI applications, have propelled its dollar-based net retention rate to 117% and expanded its customer base to 5,800. Analysts highlight its ability to cross-sell AI solutions as a key earnings driver.

Why Now?
Confluent’s real-time data processing capabilities are critical for industries like finance, retail, and healthcare, where AI-driven decisions require instant insights. Its low PEG ratio and expanding enterprise partnerships make it a compelling growth play.

Risks:
Integration challenges for legacy systems and competition from Snowflake and Google Cloud pose headwinds.

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Conclusion: Growth Amid Caution

Both Oracle and Confluent exemplify the AI-driven transformation of enterprise technology. Oracle’s cloud infrastructure and Confluent’s real-time data platforms are backed by solid fundamentals and analyst optimism, with upside potential rooted in scalable AI adoption.

However, investors should remain mindful of risks. For instance, while Nvidia’s $220 price target (95% upside) highlights AI’s vast potential, its stock faces competition from AMD’s cost-effective GPUs and market volatility. Similarly, Palantir’s overvaluation (61x trailing sales) underscores the need for selective investing.

In sum, Oracle and Confluent offer compelling opportunities for investors seeking exposure to AI’s long-term growth while balancing risk. Their strong fundamentals and analyst-backed targets make them standout picks in a market where differentiation—and data—will be key to success.

Final Note: As AI reshapes industries, focus on companies with proven execution, recurring revenue models, and undervalued growth metrics. The road ahead is bright, but so are the risks—requiring vigilance as much as vision.