Don't let your own disappointing experiences with artificial intelligence (AI) applications fool you into thinking this rapidly growing industry can't produce real earnings. This year alone, the big four tech firms Amazon, Meta, Alphabet, and Microsoft told investors they'd spend a cumulative $364 billion in 2025 on AI-related infrastructure.
Analysts on Wall Street have been telling anyone who'll listen that Big Tech's spending habits suggest big gains ahead for a handful of lesser-known AI-focused businesses. According to consensus estimates, shares of Salesforce (CRM 0.27%), HubSpot (HUBS +0.33%), and monday.com (MNDY 0.16%), could soar 30% or more over the next 12 months.
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1. Salesforce
Financial data provider LSEG surveyed 54 analysts in August who cover Salesforce, the leading customer relationship management (CRM) software business. Forty-two rated the stock a "buy" or "strong buy." The remaining 10 recommended holding the stock.
In addition to calling the stock a buy, most investment bank analysts on Wall Street have high expectations for Salesforce's future. The consensus price target for Salesforce implies a gain of 45% over the next 12 months. The most enthusiastic analyst following the CRM software provider thinks the stock could rocket 84% higher.
NYSE: CRM
Key Data Points
Analysts who follow the stock are encouraged by an agreement announced in May to acquire AI-powered cloud data management company Informatica. Investors, on the other hand, have more reservations about the $8 billion investment. On Aug. 15, the stock was down 33% from the peak it set in February.
Salesforce's stock price has been under pressure, but its underlying business is strong. During its fiscal first quarter that ended April 30, sales rose 8% year over year. The company's Data Cloud and AI segment is leading the way with annual recurring revenue that soared more than 120% year over year.
2. HubSpot
Wall Street analysts are also pounding the table on HubSpot and its AI-powered customer platform that helps businesses manage marketing, sales, service, and operations in a single, unified system. Out of 36 analysts surveyed in August, 33 labeled it a "strong buy" or at least a "buy." There were no sell or hold recommendations.
Investment bank analysts expect HubSpot stock to rocket higher. The consensus price target on the stock is $695.80, or 59% above the stock's price on Aug. 15.
NYSE: HUBS
Key Data Points
HubSpot shareholders could use the bump that Wall Street analysts have predicted. The stock is down about 47% from a peak it reached in February. Investors were disappointed with first-quarter revenue per user that shrank by 4% year over year. In the second quarter, revenue per customer returned to growth, but the 1% gain wasn't particularly encouraging.
HubSpot's per-user revenue figures haven't been thrilling, but the overall business is growing at an impressive pace thanks to the company's AI-first focus. Total customers at the end of June grew by 18% year over year to 267,982, and management expects total sales to climb 17% in 2025. According to CEO Yamini Rangan, "embedded AI features are helping go-to-market teams work smarter and faster."
3. monday.com
Investment bank analysts have also been encouraging everyday investors to consider monday.com, the work management platform provider. Among 25 analysts surveyed, 24 recommend the stock with a "strong buy" or "buy" rating. None of the analysts surveyed issued hold or sell recommendations.
Among the experts who follow monday.com, expectations for the stock's future performance are sky high. The consensus price target on the stock implies a 61% gain over the next 12 months.
NASDAQ: MNDY
Key Data Points
Everyday investors aren't as enamoured with monday.com as the analysts who follow the stock. Shares have fallen 46% from a peak they set in February. The stock was hammered recently after management issued a relatively soft revenue outlook. Third-quarter sales are expected to rise by 24% to 25% year over year, which is a significant deceleration from sales that rocketed 33% higher in 2024.
Revenue growth is softening at monday.com, but it's hardly anything to complain about. Management expects total sales to rise by 26% this year to $1.2 billion, and the gains could continue. In the second quarter alone, the company introduced three new AI-powered capabilities to boost its customers' speed and productivity.
