3 Mega-Cap Artificial Intelligence (AI) Stocks Wall Street Thinks Will Soar the Most Over the Next 12 Months

Core Viewpoint - Investors are optimistic about mega-cap stocks and those focused on artificial intelligence (AI), with analysts predicting continued momentum for these stocks over the next 12 months [1]. Group 1: Alibaba Group Holding - Alibaba Group Holding Ltd. is viewed positively by Wall Street, with an average 12-month price target indicating a potential upside of around 40% [2]. - A significant majority of analysts, 34 out of 41, rate Alibaba as a "buy" or "strong buy," reflecting strong confidence in the stock [2]. - The stock's valuation is attractive, trading below nine times forward earnings and having a PEG ratio of 0.57 based on five-year earnings growth projections [3]. - Analysts expect Alibaba to deliver stronger growth due to its expansion in payment and logistics services on Taobao and Tmall, as well as solid sales growth in its cloud unit driven by AI [4]. Group 2: ASML Holding NV - ASML Holding NV is projected to see a 24% increase in share price over the next 12 months, with 29 out of 39 analysts rating it as a "buy" or "strong buy" [6][8]. - The stock trades at a forward earnings multiple of 30 and has a PEG ratio of 1.96, indicating it is priced at a premium [6]. - ASML commands a 90% market share in photolithography equipment for semiconductors, and the rising demand for AI chips contributes to Wall Street's optimism [7]. Group 3: Salesforce - Salesforce is expected to have an upside potential of a little over 17%, slightly edging out Nvidia for the third spot among mega-cap AI stocks [9]. - Despite only an 8% year-over-year revenue growth in the third quarter, the company's earnings increased by approximately 25% [10]. - The bullish outlook on Salesforce is largely attributed to the potential of its Agentforce platform, which utilizes AI agents, driving increased customer interest [11].