Microsoft cloud services
Search documents
3 Beaten-Down Tech Stocks That Could Soar 40% or More, According to Wall Street
The Motley Fool· 2026-03-11 08:44
Core Viewpoint - Analysts from major investment firms identify three undervalued tech stocks that could potentially rise by 40% or more, highlighting the challenges of the "buy low, sell high" strategy in the current market environment [1]. Group 1: ServiceNow - ServiceNow provides an AI platform for automating workflows and serves over 85% of the Fortune 500 [3]. - The company's stock has fallen over 50% from its peak in early 2025 due to concerns about AI making many SaaS products obsolete [4]. - The current market cap is $122 billion, with a share price of $116.42, and a consensus 12-month price target suggesting a potential upside of 62% [5][6]. - ServiceNow reported a 20.5% year-over-year revenue growth in Q4 2025, with a high renewal rate of 98% [6]. Group 2: Microsoft - Microsoft is the third-largest technology company globally, leading in various sectors including cloud services and gaming [7]. - The stock has faced challenges with slowing growth in cloud services and increased AI-related capital expenditures, but Wall Street remains optimistic [9]. - The current market cap is $3.0 trillion, with a share price of $405.50, and the average 12-month price target indicates a potential increase of approximately 46% [8][9]. - Analysts believe that Microsoft's capital expenditures are secure, primarily focused on contracted GPUs, and see significant growth potential in agentic AI [10]. Group 3: Salesforce - Salesforce is the global leader in cloud-based CRM systems and has been a top innovator in agentic AI with its Agentforce platform [11]. - The stock has declined nearly 50% from its late 2024 peak and is down about 27% year-to-date [11]. - The current market cap is $180 billion, with a share price of $194.77, and the consensus 12-month price target suggests an upside of around 42% [12][13]. - Salesforce continues to achieve double-digit revenue growth, with management expecting acceleration in the second half of the fiscal year [13].