15 Hot AI Stocks on Wall Street’s Radar

11. Fortinet, Inc. (NASDAQ:FTNT)

Number of Hedge Fund Holders: 62

Fortinet, Inc. (NASDAQ:FTNT) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 6, UBS analyst Fatima Boolani lowered the price target on the stock to $90.00 (from $105.00) while maintaining a Neutral rating. The rating affirmation comes after Fortinet’s second-quarter results.

“2Q results looked decent, with billings/revenue 3%/2% ahead of consensus, 33% OpM (32% guide), and strong service billings growth of 17%.”

Despite the positive results, the firm noted that Fortinet cut its second-half services revenue guidance by $50 million. It also revised down its assumptions for the 2026 End of Service Life refresh opportunity.

Expected growth in the fourth quarter looks weaker than before, and the firm sees a tougher setup going into CY26.

“2Q results now leave investors grappling with implied 4Q guidance for 11% billings growth in 4Q (below the company’s 12% 3-5yr CAGR outlook) and ~13% service revenue growth (down from 20% in CY24). We now see a tougher setup into CY26, where success with newer products (SASE, SecOps, etc) will need to contribute more materially.”

The stock seems fairly priced for a company with low double-digit growth, the firm stated, choosing to remain on the sidelines.

“While we continue to model 10% billings growth in CY26, we expect prior consensus for 12% y/y likely needs to come down. We’d argue that at 21x EV/FCF, shares appear more reasonable for what now appears to be a LDD growth story but come away with more questions than answers around CY26 and remain on the sidelines.”

Fortinet, Inc. (NASDAQ:FTNT), a cybersecurity company, provides enterprise-level next-generation firewalls and network security solutions, leveraging artificial intelligence across its cybersecurity products.