2 Artificial Intelligence (AI) Stocks With Average Upside of 47% and 54%, According to Wall Street

Core Insights - The AI sector has experienced significant volatility, with concerns over capital expenditures and debt impacting investor sentiment [1][2] - Analysts on Wall Street believe the recent sell-off in AI stocks is exaggerated and see potential for recovery in specific companies [2] Microsoft - Microsoft has invested over $72 billion in capital expenditures in the first half of fiscal year 2026, primarily for AI infrastructure [5] - The company has 15 million paid members for its AI product, Copilot, which is considered underwhelming compared to competitors [6] - Despite these challenges, 30 out of 33 analysts recommend buying Microsoft stock, with an average price target suggesting a 47% upside [7] - Jefferies analyst Brent Thill has a price target of $675, indicating a 66% upside based on Microsoft's strong platform and subscriber base [9] Oracle - Oracle's stock has fluctuated significantly, with a notable rise following a strong earnings report that revealed over $450 billion in remaining performance obligations [11] - The company has taken on debt to expand its AI data center capabilities, raising concerns about profit margins [12] - Oracle's recent earnings exceeded expectations, and the company raised its fiscal year 2027 revenue guidance by $1 billion, alleviating some investor worries [14] - Of the 32 analysts covering Oracle, 28 have buy ratings, with an average price target indicating a 54% upside [15]