10 AI Stocks Investors Are Watching Right Now

5. Palo Alto Networks, Inc. (NASDAQ:PANW)

Number of Hedge Fund Holders: 77

Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the 10 AI Stocks Investors Are Watching Right Now. On August 12, Evercore ISI analyst Peter Levine reiterated an Outperform rating on the stock with a $220.00 price target.

According to the firm, investors are expected to focus primarily on Palo Alto Networks’ initial fiscal year 2026 guidance. There is going to be less emphasis on the pending Cyberark acquisition, which is unlikely to receive significant commentary at this stage.

Evercore ISI also expects FY26 guidance to come in slightly below Wall Street estimates. However, this has already been signaled and won’t be surprising. Investor sentiment remains muted, but the firm holds its optimistic outlook toward the stock.

“In terms of expectations for the FY26 guide, we took down our FY rev from 13.7% to 12.3%. With PANW tempering expectations over the course of the quarter, a below-consensus FY26 guide would be in line with recent signaling/should not come as a surprise. In terms of the quarter, sentiment appears more subdued relative to prior quarters, reflecting the modest revenue and ARR guide upside observed so far in FY25. Recent investor conversations show low conviction and no clear bogey, as top-line beats have averaged just 1% in F1Q–F3Q. A 15% top-line print would likely suffice. We would expect product upside, supported by stronger product results from both CHKP & FTNT. From an NGS ARR lens, the bogey stands at ~32.5% y/y, or $500mn net new ARR, vs. the midpoint of the guide of +31.4% (+$460mn in net new). Our core L/T thesis on PANW remains intact. With the stock down ~18% since the deal announcement, we believe that, for investors with a multi-quarter view, we see meaningful upside from these levels, and our initial work suggests the strategic rationale for CYBR will ultimately prove sound.”

Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.