Wall Street analysts like these stocks for long-term growth potential

Recent earnings reports from major tech companies have reignited investors’ concerns about the returns on increased artificial intelligence (AI) spending.

While some companies have failed to impress investors, others have proven their ability to capitalize on the solid growth opportunities presented by the ongoing AI boom.

With their expertise and in-depth analysis, top Wall Street analysts can help investors select stocks that may outperform the broader market and deliver impressive growth.

Here are three stocks favored by some of Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

Apple

iPhone maker Apple (AAPL) is this week’s first pick. In a recent research note, Evercore analyst Amit Daryanani reiterated his buy rating on Apple shares: price target $330. TipRanks’ AI Analyst also thinks AAPL shares are bullish, with an “outperform” rating and a $289 price target.

The five-star analyst stated that Apple’s January App Store revenue increased by 7% year-on-year. However, Daryanani stated that Gaming revenues fell for the third consecutive month on an annual basis, with January revenues falling by 3%. He explained that this weakness was due to tougher year-over-year comparisons. He expects Gaming revenues to see easier comparisons throughout the remainder of the first half of calendar year 2026.

Daryanani highlighted that despite continued weakness in the Games category, revenue from the other five categories of App Store revenue increased by double digits; Chief among these are Music (up 21%), Other (21%), Photos and Video (18%), Social Networking (11%) and Entertainment (10%).

The analyst noted that Apple continued to deliver strong growth in Services revenue despite weak App Store data, posting 14% growth in the December quarter compared to App Store growth of 6.5%. Daryanani also noted that Apple’s recently reported revenue and EPS (earnings per share) for the December quarter beat expectations, with the company delivering better-than-expected gross margin thanks to limited memory impact and strong Services growth.

“We expect AAPL to continue to capitalize on faster-growing areas (Apple Pay, iCloud, Licensing, etc.) to help offset sub-10% growth in App Store revenues,” Daryanani said.

Daryanani is ranked #160 out of more than 12,000 analysts tracked by TipRanks. Their ratings were profitable 64% of the time, with an average return of 20.6%. See Apple Options Event on TipRanks.

MongoDB

Database software provider MongoDB (MDD) is next on the list. Bank of America analyst Koji Ikeda is optimistic about the company’s growth prospects. It recently reaffirmed its buy rating on MDB shares and price estimate $500 It starts at $480. TipRanks’ AI Analyst has an “outperform” rating on MongoDB stock with a $380 price target.

Commenting on concerns about whether MongoDB’s Atlas revenue growth will continue to accelerate, Ikeda sees potential for continued strength. His optimism is supported by the success of the company’s top-down enterprise and bottom-up product-focused growth approach and its expanding product pipeline for artificial intelligence (AI) and legacy application modernization. The analyst also expects MongoDB to gain from higher consumption resulting from increased enterprise workloads.

Ikeda highlighted the strengths of the MongoDB database; He differentiated it from traditional relational databases by saying it was fast, scalable and document-based. Seer. The five-star analyst also noted new features introduced by the company, including vector search and application modernization capabilities, that strengthen its position to win additional workloads.

While MDB shares are trading at a premium to infrastructure software peers, Ikeda believes that premium is justified, given Atlas’ 30% growth compared to peers’ 11% and MongoDB’s leading position in the database market.

Ikeda is ranked #689 out of more than 12,000 analysts followed by TipRanks. It did well in the ratings 57% of the time and delivered an average return of 11.7%. See MDB Ownership Structure on TipRanks.

Western Digital

data storage company Western Digital (WDC) recently announced better-than-expected second-quarter financial results and issued solid guidance. Strong demand for hard drives and flash storage amid the ongoing AI wave is boosting the company’s business.

Following Western Digital’s Innovation Day, Bank of America analyst Wamsi Mohan reaffirmed his buy rating on WDC shares. price target $345. TipRanks’ AI Analyst has an “outperform” rating on Western Digital with a $285 price target.

Mohan noted that Western Digital expects the AI ​​and cloud storage market to grow exabytes (EB), a measure of data storage, at a CAGR (compound annual growth rate) of over 25% by 2030. The five-star analyst also sees the possibility of hard disk drives (HDDs) gaining market share and accounting for more than 80% of storage in the cloud.

Additionally, Mohan highlighted Western Digital’s revised long-term growth targets. Over the next three to five years, the company aims to grow nearline exabytes at mid-20% CAGR and total revenue above 20% CAGR. Mohan emphasized that a positive mix shift to higher capacity HDDs, stable pricing and a focus on cost improvements can increase gross margin to over 50%, operating margin to over 40% and EPS to over $20.

Western Digital, meanwhile, plans capital spending of 4% to 6% of annual revenue and free cash flow margins of more than 30%. Overall, Mohan is optimistic about WDC’s prospects based on “permanent growth of the HDD market” and better gross margins.

Mohan is ranked 110th out of more than 12,000 analysts followed by TipRanks. It did well in the ratings 62% of the time and delivered an average return of 25.1%. Check out Western Digital Financials on TipRanks.