Recent earnings reports from major technology companies have revived investor concerns about the benefits of increased spending on artificial intelligence (AI).
While some companies failed to impress investors, others demonstrated 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 can 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 manufacturer Apple (AAPL) is this week’s first choice. In a recent research note, Evercore analyst Amit Daryanani reiterated a “buy” rating on Apple shares with a price target of $330. TipRanks’ AI analyst is also bullish on AAPL stock, with an “Outperform” rating and a price target of $289.
The five-star analyst noted that Apple’s App Store revenue rose 7% year over year in January. However, Daryanani pointed out that year-over-year gaming revenue fell for the third straight month, with revenue falling 3% in January. He explained that this weakness was due to tougher year-on-year comparisons. He expects gaming revenues to be more easily comparable as the first half of the 2026 calendar year progresses.
Daryanani highlighted that despite continued weakness in the gaming category, revenue from the other five categories of App Store revenue grew double-digit, led by music (up 21%), other (21%), photo and video (18%), social (11%) and entertainment (10%).
The analyst said that despite subdued App Store data, Apple continues to deliver robust growth in services revenue, posting 14% growth in the December quarter, compared to 6.5% growth in the App Store. 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, driven by limited storage impacts and robust service growth.
“We expect AAPL to continue to benefit from faster growing areas (Apple Pay, iCloud, licensing, etc.) and help offset <10% App Store revenue growth,” Daryanani said.
Daryanani is ranked #160 among more than 12,000 analysts tracked by TipRanks. Its ratings were profitable 64% of the time and delivered an average return of 20.6%. See Apple Options activity on TipRanks.
MongoDB
Database software provider MongoDB (MDB) is next on the list. Bank of America analyst Koji Ikeda is optimistic about the company’s growth prospects. He recently confirmed his buy rating on MDB shares and increased his price forecast from $480 to $500. TipRanks AI analyst rates MongoDB stock “Outperform” with a price target of $380.
Ikeda weighs in on concerns about whether MongoDB’s Atlas revenue growth will continue to accelerate and sees the potential for continued strength. His optimism is supported by the success of the company’s top-down business and bottom-up product growth approach, as well as a growing artificial intelligence (AI) product range and legacy app modernization. The analyst also expects MongoDB to benefit from higher consumption driven by increasing enterprise workloads.
Ikeda highlighted the strengths of the MongoDB database, saying it is fast, scalable and document-based, which sets it apart from traditional relational databases such as oracle. The five-star analyst also pointed to the new features the company is offering, including vector search and application modernization capabilities, that strengthen its position in attracting additional workloads.
While MDB stock trades at a premium relative to infrastructure software peers, Ikeda believes a premium is warranted given Atlas’ 30% growth compared to 11% for peers and MongoDB’s leading position in the database market.
Ikeda is ranked #689 among more than 12,000 analysts tracked by TipRanks. His reviews were successful 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 fiscal second-quarter results and provided 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 reiterated a Buy rating on WDC stock with a price target of $345. TipRanks AI analyst has an “Outperform” rating on Western Digital with a price target of $285.
Mohan noted that Western Digital expects the AI and cloud storage market to grow by exabytes (EB), a measure of data storage, at a compound annual growth rate (CAGR) of over 25% by 2030. The five-star analyst also sees the possibility of hard 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 its nearline exabytes at a mid-20% CAGR and total revenue at over 20% CAGR. Mohan emphasized that a favorable mix shift toward higher-capacity hard drives, stable pricing and a focus on cost improvements could result in gross margin of over 50%, operating margin of more than 40% and EPS of more than $20.
Meanwhile, Western Digital plans capital expenditures of 4% to 6% of annual sales and a free cash flow margin of more than 30%. Overall, Mohan is optimistic about WDC’s prospects due to the “secular growth of the HDD market” as well as further growth in gross margin.
Mohan is ranked #110 among more than 12,000 analysts tracked by TipRanks. His reviews were successful 62% of the time and delivered an average return of 25.1%. See Western Digital Financials on TipRanks.