The Nasdaq Composite, which tracks the stock performance of more than 3,000 listed shares, reached (again) a new record this week. This marks the 19th time this year that the benchmark has soared to new highs (at the time of writing) and the longest winning streak since late 2021. There is likely much more to come, according to numerous Wall Street sources.
XM Investment analyst Marios Hadjikyriacos is counted among them. “Stock markets are enjoying the best of all worlds, supported by a resilient US economy and speculation that Fed rate cuts are imminent, helping to justify high valuations,” he wrote. UBS Analyst Mark Haefele is also optimistic, noting: “All-time highs often lead investors to believe that markets have peaked. Such concerns are not supported by history,” he advised concerned investors.
Despite reaching new heights, a number of high-profile Nasdaq stocks still have plenty of room to rise and could rise as much as 97%, according to select Wall Street analysts.
Nvidia: implicit advantage of 53%
The first Nasdaq stock with a lot of upside potential is Nvidia (NASDAQ: NVDA). The chipmaker was one of the early beneficiaries of the artificial intelligence (AI) revolution like a pickaxe game. The term refers to a famous quote attributed to Mark Twain: “During the gold rush is a good time to be in the pick-and-shovel business.” In this case, AI is the gold rush and Nvidia is busy picking and shoveling.
More specifically, Nvidia provides the gold standard graphics processing units (GPUs) that process the data, which supports the latest developments in generative AI. The company was among the early converts to AI, turning its focus to the emerging technology more than a decade ago. That prescient move paid off and gave Nvidia a significant lead over the competition.
Nvidia’s latest results illustrate the extent of that lead. For the first quarter of 2025 (ending April 28), Nvidia’s revenue rose 262% year over year to a record $26 billion, while earnings per share (EPS) shot up 629% to $5.98. The company’s data center segment, which includes AI chips, was the largest contributor as revenue rose 427% to $22.6 billion.
Despite the stock price being up 215% over the past year (at the time of writing), Wall Street remains steadfastly positive. Rosenblatt analyst Hans Mosesmann raised his price target to $200 while maintaining a buy rating on the stock. That represents a potential upside of 53% compared to Monday’s closing price.
Mosesmann is optimistic about Nvidia’s chips, but notes that “the real story is in the software that complements all the good hardware.” The analyst further suggests that Nvidia’s market cap will rise to almost $5 trillion in the coming year.
The analyst is not the only one who is positive about Nvidia. Of the 57 analysts who gave their opinion on the stock in May, 53 rated the stock as a buy or strong buy. no recommended sale.
At 52 times forward earnings, Nvidia isn’t cheap. However, it’s a fair price for a company that’s generating triple-digit revenue and profit growth and benefiting from such strong long-term tailwinds.
Super Micro Computer: implicit advantage of 69%
Another Nasdaq stock with added upside is Super microcomputer (NASDAQ:SMCI), also known as Supermicro. The company provides state-of-the-art servers packed with the latest high-end processors designed to deliver the computing power needed for AI.
What gives Supermicro an edge is its relentless focus on energy efficiency, its range of plug-and-play solutions and building block architecture. This allows customers to tailor their systems to their needs and budget. Furthermore, the company offers a wide range of solutions including free air, liquid cooling and traditional air cooling technology, ensuring there is something for everyone.
In the third quarter of Supermicro’s fiscal 2024 (ended March 31), revenue rose 201% year over year to $3.85 billion, while adjusted earnings per share rose 329% to $6.56. An expansion of production facilities will help the company meet increasing demand, increasing production potential to support annual sales of $25 billion.
Despite shares rising a spectacular 301% in the past 12 months, some on Wall Street believe there is more to come. Loop Capital analyst Ananda Baruah has a $1,500 price target and a buy rating on the stock. That represents a potential gain of 69% for investors compared to Monday’s closing price.
The analyst cited Supermicro’s ability to deliver both complexity and scale as a reason for its leading position in the AI server market. He further suggests that Supermicro will achieve $40 billion in sales by the end of fiscal 2026, well ahead of the company’s expectations of $15 billion this year.
The analyst is not the only one who is positive about Supermicro. Of the sixteen analysts who gave their opinion on the stock in April, twelve rated the stock as buy or strong buy. no recommended sale.
Plus, at only twice next year’s sales, Supermicro is a bargain at this price.
Baidu: 97% implicit advantage
The final Nasdaq stock in our trio with a lot of upside potential is Baidu (NASDAQ: BIDU), often called the ‘Google of China’. According to internet statistics aggregator StatCounter, the company is the dominant internet search provider in China, with more than 52% of the market. Like its US counterpart, Baidu has a veritable wealth of data, which forms the backbone of its digital advertising business and generates the lion’s share of the company’s revenue.
Perhaps just as importantly, Baidu is one of China’s generative AI leaders, with the capabilities of its Ernie Bot 4.0 rivaling those of OpenAI’s GPT-4 large language model.
In the first quarter, Baidu’s total revenue of $4.4 billion rose 1% year over year, although earnings per share of $2.07 fell 6%. As China’s struggling economy weighed on Baidu’s results, the company continued to pour money into its AI program, which it said would boost future sales and profits.
One Wall Street analyst thinks a turnaround is on the horizon. Benchmark analyst Fawne Jiang has a buy rating on Baidu shares and a price target of $180. This represents a potential upside of 97% compared to Monday’s closing price. The analyst points out that this was Baidu’s seasonally low quarter for ad revenue, but this was offset by 12% growth in Baidu’s AI cloud business, which represents a significant opportunity going forward.
The analyst is part of a growing cadre on Wall Street that believes Baidu presents an attractive opportunity. Of the 36 analysts who gave their opinion on the stock in May, 32 rated the stock as a buy or strong buy. no recommended sale.
Finally, at just twelve times earnings, Baidu has priced in very little growth. Even a modest recovery in the Chinese economy, which some say has already begun, could send the stock price higher.
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Danny Vena holds positions at Microsoft, Nvidia and Super Micro Computer. The Motley Fool holds positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
3 Nasdaq Stocks to Buy Before They Soar as Much as 97% According to Select Wall Street Analysts was originally published by The Motley Fool
