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AI Disruptions Weigh On Elastic N.V. (ESTC) But Analysts Still See Opportunity For The Infrastructure Vendor

With $1.50 billion in investment from billionaires, Elastic N.V. (NYSE:ESTC) earns a place among the best dip stocks according to billionaires.

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As of April 22, 2026, Elastic N.V. (NYSE:ESTC) is a “Buy” among 60% of covering analysts, with the stock carrying a roughly 65% upside potential. That analyst support remains intact despite the stock’s 36% decline over the past year. Bullishness around the stock despite AI disruption fears reflects the opportunity for infrastructure vendors tied closely to enterprise data.

That view was visible in RBC Capital’s April 16, 2026, note, where it indicated a lack of negative AI impact on the stock. It said Elastic N.V. (NYSE:ESTC) is strongly positioned because it is closely tied to enterprise data, supports flexible deployment, and uses consumption-based pricing. That indicates the company’s growing relevance, as companies build and deploy tools that rely on large amounts of searchable, usable data.

However, RBC Capital cut its price target on Elastic N.V. (NYSE:ESTC) from $80 to $70 and reiterated an “Outperform” rating. The firm attributed the target reduction to compression of peer multiples.

Meanwhile, on its Q3 fiscal 2026 earnings call, management shared an optimistic outlook for 2026, guiding revenue to $1.734 billion to $1.736 billion. That estimate implies 17% annual growth at the midpoint.

Elastic N.V. (NYSE:ESTC) develops search, observability, and security solutions through its Elastic Stack platform. Its products help organizations search, analyze, and visualize data in real time, supporting use cases across enterprise search, logging, security, and analytics worldwide.

While we acknowledge the risk and potential of ESTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ESTC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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