These 3 artificial intelligence (AI) stocks could soar more than 40% over the next 12 months, according to Wall Street

Unlocking AI's Potential: 3 Software Stocks Wall Street Predicts Will Soar Over 40%

Artificial intelligence (AI) is more than just a buzzword; it's a powerful force fundamentally reshaping industries and creating significant wealth for savvy investors. While the market often experiences fluctuations, leading analysts on Wall Street are pinpointing specific AI software companies that they believe are poised for substantial rebounds and impressive growth in the next 12 months. If you're looking to capitalize on the AI revolution, these three stocks warrant a closer look.

Why Focus on AI Software Now?

Despite recent market dips for some tech giants, the underlying business fundamentals for leading AI software providers remain robust. Analysts see current valuations as potential entry points, forecasting impressive upside. These companies are not merely adopting AI; they are leveraging it to enhance their core offerings, drive innovation, and expand their market reach, creating strong tailwinds for future performance.

Atlassian: Collaboration, Productivity, and a 60% Upside?

Team collaboration and productivity software leader Atlassian has captured significant attention from analysts. A recent survey revealed that the vast majority (25 out of 31) of analysts covering Atlassian rate the stock as either a "buy" or "strong buy," with an average 12-month price target suggesting an astounding 60% upside potential. Even the most cautious forecasts anticipate a healthy 23% jump.

While Atlassian's stock has faced a notable decline this year, dropping roughly 30% year to date and nearly 50% from its February peak, its business strength persists. The company reported a robust 22% year-over-year revenue increase in its latest quarter, nearing $1.4 billion. CEO Mike Cannon-Brookes highlights that "AI is fundamentally changing the way we work, and creating significant tailwinds for Atlassian in the process." This strong operational performance, coupled with AI integration, fuels Wall Street's optimism for a powerful rebound.

Salesforce: Bolstering AI Strategy with a Potential 45% Rally

Customer relationship management (CRM) giant Salesforce also enjoys strong analyst support. Out of 54 analysts surveyed, 42 recommend Salesforce as a "buy" or "strong buy." The consensus 12-month price target points to an impressive 45% gain from current levels, with one particularly bullish analyst predicting an over 80% surge.

Salesforce's stock has similarly experienced a roughly 30% dip year to date. Some market observers have expressed reservations regarding its planned $8 billion acquisition of data management provider Informatica. However, Salesforce leadership views this deal as a strategic move to significantly enhance its agentic AI capabilities. Complementing this acquisition, the company recently rolled out Agentforce 3, a platform designed to help organizations deploy AI agents at scale. This proactive approach to integrating advanced AI into its core offerings positions Salesforce for substantial future growth, aligning with analyst expectations.

Adobe: Creative Acceleration and a Projected 42% Ascent

Adobe, a powerhouse in creative software, is another AI-driven company receiving strong backing from analysts. Twenty-seven of the 40 analysts surveyed give Adobe a "buy" or "strong buy" rating. The average 12-month price target for Adobe suggests an upside potential of approximately 42%, with one analyst projecting nearly 79% growth.

Much like Atlassian and Salesforce, Adobe's shares have seen a decline, falling more than 20% this year and over 40% from its September 2024 high. Investor concerns revolve around the timeline for generative AI integration to yield substantial returns and the increasing competitive landscape. Yet, Adobe's recent performance paints a positive picture, with record Q2 revenue of $5.87 billion, up 11% year over year. CEO Shantanu Narayen affirmed that "The creative opportunity is expanding across audiences with AI as an accelerant," indicating strong customer adoption and positive internal outlook despite external hesitations. Adobe's proven ability to innovate and integrate AI positions it as a compelling investment opportunity.

Key Takeaways for Investors

These three AI software companies – Atlassian, Salesforce, and Adobe – present a compelling case for investors seeking growth in the evolving AI landscape. The common thread among them is significant analyst confidence, strong underlying business performance, and strategic advancements in AI integration. Despite recent stock pullbacks, which some view as opportunities, their commitment to leveraging AI for enhanced products and services positions them for a potential strong recovery and substantial gains in the coming year. As always, thorough personal research is essential before making any investment decisions, but the Wall Street consensus on these AI leaders provides a valuable starting point for consideration.