In this article, we will list the 5 Best Mid-Cap AI Stocks to Buy According to Analysts. Please visit the 12 Best Mid-Cap AI Stocks to Buy According to Analysts if you’d like to see an extended list and how we came up with the list of the best mid-cap AI stocks.
5. FormFactor Inc (NASDAQ:FORM)
Potential Upside: 37.1%
The most recent analyst activity in FormFactor Inc (NASDAQ:FORM) comes from Evercore ISI’s Vedvati Shrotre, who assigned a $155 price target to the stock, suggesting 33% upside, consistent with the median analyst upside estimate. Prior to that, on May 12, Craig Ellis of B. Riley Securities revised his price target upward on FormFactor Inc (NASDAQ:FORM) shares from $145 to $165.
The main reason for Craig Ellis’ positive stance on the company is the guidance provided on the May 11 Investor’s Day presentation. Management outlined its 2030 financial targets, which included 55% non-GAAP margins, operating expenses at 23% of revenue, and a non-GAAP EPS of $5. The growth is expected to come from high-bandwidth memory applications, high-performance computing, advanced packaging, and co-packaged optics. Moreover, the Framers Branch expansion is likely to drive higher margins and help the company gain market share.
The Investor Day also prompted other analysts to revisit their financial models, with Craig-Hallum upgrading the stock to Buy from its prior Hold rating and maintaining a price target of $175. This is also the highest target on Wall Street, as per estimates from 10 different analysts.
FormFactor Inc (NASDAQ:FORM) primarily offers semiconductor testing equipment and operates through two segments: Probe Cards and Systems. The probe cards are used to test various semiconductor processors and systems-on-chip products. The Systems segment designs the hardware platforms that are used to test these semiconductor devices. The company is based in Livermore, Canada.
4. Tempus AI Inc (NASDAQ:TEM)
Potential Upside: 37.8%
On May 29, Tempus AI Inc (NASDAQ:TEM) announced that it had received FDA approval for a tumor-only indication for its xT CDx sequencing platform. This makes the company the only laboratory to have both tumor-only and tumor-normal comprehensive genomic profiling approvals. This also builds on the company’s solid foundation in leveraging artificial intelligence. The firm sits on over 500 petabytes of data from over 45 million patients.
Tempus AI’s technology now has the ability to identify when a patient receiving a standard drug is expected to do poorly. This will not only help drug companies design smarter clinical trials but also help doctors take better treatment decisions as early as possible. The company’s stock has lost one-fifth of its value in a month, which is understandable, given that most analysts lowered their price targets in May. However, with the success of its sequencing platform, further revisions could come in the short-term, prompting a rally in the stock, which is already up 8% in the last five trading days.
Tempus AI Inc. (NASDAQ:TEM) is a healthcare technology company that uses artificial intelligence to advance precision medicine. It achieves this through its massive libraries of clinical and genomic data. Pharmaceutical companies use their products to improve drug discovery processes while physicians use them to personalize treatments for their patients. The firm is based in Chicago, United States.
3. Onto Innovation Inc. (NYSE:ONTO)
Potential Upside: 38.2%
Onto Innovation Inc. (NYSE:ONTO) has seen some bullish analyst activity recently, with Craig Ellis of B. Riley Securities revising his target price upward from $330 to $365. This is in continuation of the general trend since the May 5 earnings report. Following the company’s solid earnings, Edward Yang of Oppenheimer reiterated his bullish stance and raised the firm’s price target on the stock from $350 to $370. According to the firm, the company had already given stronger-than-expected guidance for Q1 and Q2, so a big earnings beat surprised analysts.
The AI tailwind continues to help the company with its growth ambitions. Jeffries, which also came out with a similar upgrade post-earnings, said the company’s core business in HBM and CoWoS is continuing to improve. Moreover, it added that new growth opportunities are starting to add up over time.
Onto Innovation Inc. (NYSE:ONTO) posted its Q1 fiscal 2026 earnings on May 5, in line with the market expectations. Revenue for the quarter came in at $292 million, representing around 10% sequential increase. Looking ahead, second-quarter revenue is expected to range between $320 million and $330 million. This guidance suggests that full-year 2026 revenue could exceed $1.3 billion.
Onto Innovation Inc. (NYSE:ONTO) is involved in the manufacturing, development, design, and support of process control tools used in semiconductor production. Its product offerings include lithography systems and process control analytical software & automated and integrated metrology systems.
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.
1. SoundHound AI Inc. (NASDAQ:SOUN)
Potential Upside: 83%
SoundHound AI Inc. (NASDAQ:SOUN) is a stock that has significantly underperformed during the AI rally over the last 12 months. Even though analysts have a median upside of 83% on the stock, its performance has been choppy and is currently among the most shorted stocks on Wall Street. This negativity brings with it an opportunity that makes the stock one of the best mid-cap AI stocks to buy, according to analysts.
The company’s most recent earnings report on May 7 showed a glimpse of the potential that is driving this analyst optimism. It registered a topline growth of more than 50%, with the automotive and IoT AI business up over 88% YoY. The firm is planning its resurgence around the agentic AI theme, with the announcement of OASYS prior to the earnings, a platform where AI builds AI, helping the company achieve its mission of delivering a single agentic AI ecosystem.
The management was asked about the sustainability of its growth through an acquisition strategy, and CEO Keyvan Mohajer reiterated that revenue growth and cost synergies will deliver the expected return on investment in the short term. The most recent acquisition of LivePerson, a digital customer service platform, is expected to close in the second half of the year. While the market may not yet have priced in the positive impact of these acquisitions, analysts are certainly the most bullish on the company’s prospects over the next twelve months.
SoundHound AI Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses. It is based in Santa Clara, California.
While we acknowledge the potential of SOUN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SOUN and that has 100x upside potential, check out our report about the cheapest AI stock.
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