Artificial intelligence (AI) is shaping up to be the most revolutionary technology in at least a decade. Barron's estimates that AI spending accounted for over a third of U.S. economic growth during the first three quarters of 2025, and AI spending is forecast to increase at 31% annually through 2033, according to Grand View Research.
Investors can lean into that opportunity by owning shares of CoreWeave (CRWV +2.65%) and Atlassian (TEAM 4.35%). Certain Wall Street analysts think those stocks are deeply undervalued.
- Kevin Dede at H.C. Wainwright has set CoreWeave with a target price of $180 per share. That implies 105% upside from its current share price of $88.
- Keith Weiss at Morgan Stanley has set Atlassian with a target price of $320 per share. That implies 130% upside from its current share price of $139.
Here's what investors should know about these AI stocks.
Image source: Getty Images.
CoreWeave: 105% implied upside
CoreWeave is a neocloud, sometimes called an artificial intelligence (AI) cloud or graphics processing unit (GPU) cloud. Whatever you call it, the company has been recognized as the leader among an emerging class of cloud providers whose data centers are purpose-built to support the power density, memory, and cooling required by AI workloads like training and inference.
Research company SemiAnalysis recently ranked CoreWeave as the most capable provider of cloud AI services, scoring its platform above technology giants Amazon, Microsoft, and Alphabet. Analyst Dylan Patel wrote, "CoreWeave continues to set the benchmark for AI cloud performance by demonstrating strong technical execution and operational maturity."
CoreWeave stock is down 53% from its high, due to concerns about the durability of the AI boom and the substantial debt the company has taken on to finance the building of its data centers. I am not overly worried by either issue. Even the best AI stocks will fall from time to time, but the technology itself will only become more important. And CoreWeave's debt should become less consequential as revenue continues to grow.
On that note, Wall Street estimates CoreWeave's revenue will increase at 94% annually through 2027. That makes the current valuation of 8.4 times sales look cheap, provided the company eventually reaches profitability. The stock may not return 105% over the next year, but the median target price of $120 per share implies 36% upside from the current share price of $88.
NASDAQ: CRWV
Key Data Points
Atlassian: 130% implied upside
Atlassian develops work management and collaboration software for technical teams (e.g., development and operations, or DevOps) and nontechnical teams (e.g., marketing). The company also develops IT service management software. Collectively, Atlassian's products help customers plan, track, and complete projects.
Atlassian has differentiated itself by eschewing traditional sales and marketing strategies. By focusing on self-service sales and word-of-mouth marketing, it can spend far more on research and development than its competitors. Consultancy Gartner recently recognized Atlassian as a leader in DevOps and collaborative work management software.
In 2024, Atlassian launched its AI assistant Rovo. The platform initially included tools for intelligent search and process automation, but the company added code generation tools for developers last year. Morgan Stanley sees Atlassian as one of the software companies best positioned to monetize demand for AI agents.
Atlassian stock is down 57% from its high, partly because investors are worried demand for DevOps tools will drop as AI coding tools become more popular. But Morgan Stanley analysts say the market has it backwards. Productivity improvements realized through AI will increase the number of developers, creating more demand for DevOps software.
Looking ahead, Wall Street expects Atlassian's adjusted earnings to grow at 22% annually through the fiscal year ending in June 2027. That makes the current valuation of 35 times earnings look reasonable, especially when Atlassian beat the consensus estimate by an average of 16% during the last six quarters, according to LSEG. I doubt the stock will add 130% in the next year, but the median target price of $230 per share implies 65% upside from the current share price of $139.
