12 Best Mid-Cap AI Stocks to Buy According to Analysts

7. Cognex Corp. (NASDAQ:CGNX)

Potential Upside: 24.1%

On May 26, JPMorgan analyst Tomohiko Sano upgraded Cognex Corp. (NASDAQ:CGNX) from Neutral to Overweight. He also raised the firm’s price target on the stock from $65 to $75. The firm’s adjusted price target offers a further 23% upside from the current levels. It highlighted the company’s continued innovation in AI-powered solutions, which are helping it reach more customers and broaden its market opportunities.

According to the analyst, CGNX is entering a new growth phase driven by its AI-enabled vision technology and expanding its presence across a broader range of end markets. In addition, the company’s ongoing sales model transformation is improving its market reach and is expected to help double its customer base over time.

Cognex Corp. (NASDAQ:CGNX) posted its first-quarter FY26 results on May 7, reporting 21% year-over-year revenue growth. Supported by a favorable product mix and higher sales volume, adjusted gross margin improved 420 basis points to 71.8%. However, these gains were partially offset by tariff-related costs. Adjusted EBITDA doubled from the previous year, coming in at $72 million. During the quarter, the company returned $113 million to shareholders. This included $99 million in share buybacks.

Cognex Corp. (NASDAQ:CGNX) sells machine vision devices that automate production and distribution activities by capturing and analyzing visual data. Its portfolio includes software for advanced programming, technology for developing vision applications, and an image-based barcode reader.