We recently compiled a list of the 15 Trending AI Stocks on Latest Ratings and News. In this article, we are going to take a look at where Fortinet, Inc. (NASDAQ:FTNT) stands against the other trending AI stocks on latest ratings and news.
AI data centers and the power needed to keep them running are some of the hottest topics in the technology space. A new report by management consulting firm Gartner sheds expert light on the matter, AI and GenAI are driving rapid increases in electricity consumption, with data center forecasts over the next two years reaching as high as 160% growth. Gartner claims that 40% of existing AI data centers will be operationally constrained by power availability by 2027. Research from the company indicates that the power required for data centers to run incremental AI-optimized servers will reach 500 terawatt-hours (TWh) per year in 2027, which is 2.6 times the level in 2023.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Bob Johnson, VP Analyst at Gartner, has said that the explosive growth of new hyperscale data centers to implement GenAI is creating an insatiable demand for power that will exceed the ability of utility providers to expand their capacity fast enough. In turn, per Johnson, this threatens to disrupt energy availability and lead to shortages, which will limit the growth of new data centers for GenAI and other uses from 2026. He added that short-term power shortages are likely to continue for years as new power transmission, distribution and generation capacity could take years to come online and won’t alleviate current problems.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing 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).
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Fortinet, Inc. (NASDAQ:FTNT)
Market Capitalization: $72 Billion
Fortinet, Inc. (NASDAQ:FTNT) provides cybersecurity and convergence of networking and security solutions worldwide. The Fortinet SecOps platform offers the broadest range of sensors that utilize AI and other advanced analytics to continuously assess cyberthreats. On November 11, BMO Capital analyst Keith Bachman raised the price target on the stock to $88 from $76 and kept a Market Perform rating on the shares. The company reported a mixed quarter, with the results and outlook for organic billings growth seen as weak, though the advisory still believes that the firewall market could improve in FY25 while noting that Fortinet’s free cash flow generation continues to impress, the advisory told investors in a research note.
Overall FTNT ranks 11th on our list of the trending AI stocks on latest ratings and news. While we acknowledge the potential of FTNT 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 FTNT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.