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Macquarie Analyst Reiterates ‘Outperform’ Rating on GitLab Inc. (GTLB) with $90 Price Target, Highlights AI-Driven Growth and Strategic AWS Partnership

We recently compiled a list of the 10 Trending AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where GitLab Inc. (NASDAQ:GTLB) stands against the other AI stocks.

Technology is advancing unprecedentedly, and physical AI seems to be the next leap forward. That’s right, physical AI is going to be an incremental moment for mankind, where intelligent machines will have the ability to interact and manipulate their environment. Manifesting in robots and machines, these advanced systems can analyze their surroundings, use data to make decisions, and even physically interact with the world around them.

READ NOW: Top 10 AI Stocks on Latest Analyst Ratings and News and 15 Important AI News and Ratings on Investors’ Radar

This makes robotics makers, auto suppliers, and specialty semiconductor companies the next big winners in AI. While it initially started with search bots, technology is now moving to agentic AI, such as research assistants and customer service representatives. Naturally, the next focus is going to be technology that can interact with the physical world and act independently through artificial intelligence. According to analysts, this is where all the “big money” is going to be.

“As you go into 2025, agentic AI is that next inflection point here before you hit that physical AI moment … like with everything else in the world, you have to crawl before you can walk and then run. Gen AI hasn’t really seen much monetization thus far. So when you start thinking about agentic AI and robotics and what have you, there’s a real kind of belief out there — and expectation. You’ll see those use cases start to come about this year”.

-CFRA senior equity analyst Angelo Zino.

According to CNBC, Wall Street anticipates realistic AI-enabled agent applications to start appearing this year. Innovations in physical AI could begin coming out later, most likely beginning with self-driving cars.

Physical AI has created “an additional leg to the stool” to the AI build-out phase. “There’s an additional driver now that augments what’s going on today and AI broadly”.

-Goldman Sachs analyst Toshiya Hari.

According to CEO Jensen Huang, “the ChatGPT moment for general robotics is just around the corner”. He said that the company anticipates enabling the development of three key robots in the coming years: agentic agents, self-driving vehicles, and humanoid robots. In this respect, he has also introduced Nvidia’s Cosmos platform for companies looking to train and develop physical AI systems. According to a recent Nvidia press release, the Cosmos platform can generate physics-based videos from several inputs, like video, image text, as well as robot sensor and motion data.

Here is what Oppenheimer analyst Colin Rusch thinks about Physical AI:

“We see physical AI as a nascent interdisciplinary field poised to transform the industrial complex through increased asset productivity and labor efficiency. We see outsized investment return potential in sensing, sensor fusion, compute hardware & software architecture, connectivity, controls, and AI training strategies”.

-Oppenheimer analyst Colin Rusch

All in all, analysts believe AI is going to be a multi-trillion-dollar Total Addressable Market opportunity, particularly on the physical side of things.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A team of software engineers working together in an open office, developing innovative solutions.

GitLab Inc. (NASDAQ:GTLB)

Number of Hedge Fund Holders: 43

GitLab Inc. (NASDAQ:GTLB) is a comprehensive AI-powered DevSecOps platform that streamlines software development for organizations. On January 15, Macquarie analyst Steve Koenig reiterated an “Outperform” rating on GitLab Inc. (NASDAQ:GTLB) with a price target of $90. Naming it his top software pick for the year, Koenig’s optimism stems from multiple factors. For starters, there is the perception of a significant valuation discount that makes the company “a valuable and strategic financial asset”. Moreover, the analyst believes that GitLab should also benefit from the continued enthusiasm for AI. Its Duo offering, which includes a suite of AI-powered tools within the GitLab platform, helps developers with various tasks like code writing and security checks. The company has also partnered with Amazon Web Services back in December. Since 2025 is going to be “the year of agentic AI”, GitLab will benefit from having the partnership. Koenig said that the joint offering takes the company a step ahead, with GitLab’s “agentic AI agenda” going beyond code creation to a range of use cases, such as testing, security reviews, and code modernization.

Overall GTLB ranks 2nd on our list of the AI stocks on latest news and ratings. While we acknowledge the potential of GTLB 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 timeframe. If you are looking for an AI stock that is more promising than GTLB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

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?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

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Trust me — you’ll want to read this report before putting another dollar into any tech stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

Get the ticker for our new “Underdog” pick and the full BTI case study for just 99 cents.

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