10 Trending AI Stocks on Wall Street

7. Zscaler Inc. (NASDAQ:ZS)

Number of Hedge Fund Holders: 50

Zscaler Inc. (NASDAQ:ZS) is one of the 10 Trending AI Stocks on Wall Street. On December 11, Freedom Capital Markets analyst Almas Almaganbetov reiterated a Buy rating on the stock with a $320.00 price target.

The affirmation reflects firm optimism driven by a strong Q1 beat, validating the company’s strategic focus and execution strength.

Zscaler delivered “robust” fiscal Q12026 results, outperforming estimates and management’s own guidance. It’s performance is a reflection of the robust demand for its platform-based cybersecurity solutions.

Freedom Capital highlighted how ZS’s revenue growth was largely driven by the expansion of Zero Trust Everywhere, an expansion of the cloud-native security platform Zero Trust Exchange. Other catalysts include “expansion of the AI security stack (including observability, AI asset management, embedded guardrails, and model testing), and enhanced data protection modules.”

Despite the top-line momentum, the firm noted some pressure on gross margins and operating expenditures due to newer products which currently carry lower margins.

“This dynamic reflects a strategic trade-off to capture market share in high-growth verticals like AI safety and expanded Zero Trust architectures. Management’s guidance for Q2 FY2026 aligns with market consensus, while the full-year FY2026 outlook has been raised to reflect the Q1 outperformance.”

Management increased its revenue and earnings forecasts through FY2026, with medium and long-term projections largely remaining unchanged.