NVIDIA, Zscaler, Salesforce Top Picks Despite Market Volatility

Despite the ongoing macroeconomic uncertainties that have caused market volatility, investors are advised to focus on high-quality stocks that offer long-term returns. Top analysts on Wall Street have identified three such stocks that are expected to withstand short-term pressures and deliver exceptional returns. These recommendations are based on the companies' strong fundamentals and long-term growth potential.

NVIDIA, a leading semiconductor company, has been highlighted as a top pick. The company reported impressive results for the first quarter of its 2026 fiscal year, exceeding market expectations. Despite facing export restrictions on its chips, NVIDIA remains confident in the demand for its AI infrastructure. Morgan Stanley analyst Harlan Sur reiterated a "buy" rating on the stock with a target price of 170 dollars, noting that while the H20 chip export restrictions impacted some sales, the company's overall revenue remained robust. The analyst also highlighted the strong demand for NVIDIA's Blackwell platform, which is expected to remain in short supply for multiple quarters. Sur emphasized that NVIDIA's leadership in chip technology, software-hardware platforms, and its superior ecosystem positions the company at the forefront of the industry. Sur's recommendations have a 66% success rate and an average return of 23.4%.

Zscaler, a cybersecurity firm, is another stock that has caught the attention of analysts. The company's third-quarter results surpassed expectations, driven by the increasing demand for its zero-trust exchange platform and AI security solutions. In response to the positive results, Morgan Stanley analyst Brian Essex raised the target price to 292 dollars while maintaining a "buy" rating. Essex noted that Zscaler's performance was particularly encouraging given the macroeconomic pressures faced by its peers. The company has raised its annual revenue, earnings, and billings guidance, benefiting from the strong performance of its new products, including "full domain zero trust," "full domain data security," and "intelligent operations management." These products have an annual recurring revenue (ARR) of nearly 100 million dollars. Essex also highlighted the strong growth in large customers, with those having an ARR of over 100 million dollars increasing by 23% year-over-year. The company's management noted that the macroeconomic environment was better than expected, despite tight IT budgets. Essex believes that the acquisition of Red Canary will enhance the company's intellectual property and threat intelligence capabilities. Essex's recommendations have a 58% success rate and an average return of 12.6%.

Salesforce, a provider of customer relationship management software, reported strong first-quarter results for its 2026 fiscal year, with both revenue and earnings exceeding expectations. The company also announced an 80 billion dollar acquisition of Informatica, a data management enterprise. Following the earnings release, TD Cowen analyst Derrick Wood reiterated a "buy" rating on the stock with a target price of 375 dollars. Wood noted that the company's revenue and backlog of unfulfilled contracts exceeded expectations, indicating a strong demand signal for next year's growth. Wood emphasized Salesforce's rapid progress in AI applications, with data cloud and AI-related ARR growing by over 120% year-over-year. The company's intelligent agent product, Agentforce, has gained significant market recognition, with 30% of new orders coming from existing customers upgrading their services. Wood believes that the expansion of the data cloud is a leading indicator of Agentforce's adoption, as customers accelerate the deployment of intelligent workflows. The analyst also noted that Salesforce is reinvesting the cost savings from AI into growth areas, following a period of stable operating margins around 35%. Wood views the company's renewed focus on expanding its sales team as a positive sign of growing demand. Wood's recommendations have a 62% success rate and an average return of 14.8%.