10 Hot AI Stocks to Keep on Your Radar

7. Workday, Inc. (NASDAQ:WDAY)

Number of Hedge Fund Holders: 85

Workday, Inc. (NASDAQ:WDAY) is one of the 10 Hot AI Stocks to Keep on Your Radar. On September 9, Needham analyst Scott Berg reiterated a Buy rating on the stock with a $300.00 price target. The rating affirmation comes ahead of Workdays’ annual Analyst Day scheduled on September 16.

The firm believes that Workday is likely going to have a lower growth profile, due to which it will raise its operating margin target from the current approximately 30% level.

Looking ahead, it believes that Workday’s long-term strategy centers around revitalizing growth through a differentiated AI approach and a rapidly expanding partner motion.

“We preview Workday’s annual Analyst Day to be held in conjunction at its upcoming Workday Rising customer conference on Tuesday, September 16. We believe the event will focus on growth expectations, with our expectation Workday is likely to lower their current 15%+ FY27 subscription revenue growth target to as low as 13% organically given the company just reported 14% 2Q subs revenue growth. We think the company is suffering from a variety of macro-driven slowdowns in ERP migrations that has hit Office of the CFO vendors across our coverage universe to different degrees. To compensate for the lower growth profile, we think Workday will raise their OM target from the current ~30%. Longer-term, we believe the company remains focused on reactivating growth through a differentiated AI strategy and a rapidly expanding partner motion.”

Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications.