10 Trending AI Stocks on Wall Street Right Now

8. Pegasystems Inc. (NASDAQ:PEGA)

Number of Hedge Fund Holders: 34

On June 3rd, Needham analyst Jack Andrews raised the price target on Pegasystems Inc. (NASDAQ:PEGA) to $112.00 (from $101.00) while maintaining a “Buy” rating.

Needham’s price target revision reflects Pegasystems’ strategic moves in the AI sector and its positive revenue outlook. Pega made several announcements during its PegaWorld conference and Investor Day. Not only did the company unveil new AI-related products, but it also adjusted its fiscal year 2025 revenue guidance by approximately 6% to $1.7 billion, a year-over-year growth of 13.6%.

A revenue beat in the first quarter and increased confidence in the company’s pipeline, despite broader economic challenges, have been attributed as drivers behind the upward revision. Based on this improved outlook, firm analysts also slightly increased their forecasts, also citing Pegasystems’ Blueprint initiative and successful partnerships with Global System Integrators (GSI) as reasons.

Owing to these factors, analysts expect more workloads over the coming years, leading to the rating update.

Pegasystems Inc. (NASDAQ:PEGA) develops, markets, licenses, hosts, and supports enterprise software.