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

2. Dlocal Ltd. (NASDAQ:DLO)

Potential Upside: 60.1%

On May 27, Truist lowered its price target on Dlocal Ltd. (NASDAQ:DLO) stock from $16 to $15. Despite the downward revision, the stock’s YTD performance of -20% meant that there is considerable upside based on previously assigned target prices. The median analyst upside of 60.1% is quite attractive. Dlocal does not have a core AI product. However, it stands to benefit from AI implementation in its business through fraud detection and reduction, optimized transaction routing, and automating money-laundering frameworks, making it an interesting AI play.

The main reason for Truist’s pessimism in the most recent update is operating expense, which the firm believes will take time to come down, possibly by the end of 2026. Other than that, gross profits are expected to go up in the low single-digit range, aided by strong volumetric growth but offset by operating expenses. This growth was visible in the first quarter’s results, when the company posted a revenue of $335.86 million, comfortably beating consensus estimates by $4.67 million.

DLocal Limited (NASDAQ:DLO) is a financial technology company that provides a cross-border payment processing platform, allowing global merchants to accept payments and make payouts in emerging markets. Using one API and contract, it connects businesses with over 900 local payment methods across 40+ countries in Latin America, Asia, and Africa.