The Nasdaq Composite has experienced a turbulent year, with a significant climb followed by a recent correction. However, Wall Street remains optimistic about the market’s long-term potential. U.S. Bank Wealth Management’s chief investment officer, Eric Freedman, believes it is still a favorable time to invest, highlighting that drawdowns are not uncommon.
Amidst this backdrop, select Wall Street analysts have identified two Nasdaq stocks with substantial room for growth. CrowdStrike Holdings, a cybersecurity specialist, faced a recent setback when a software update caused a global tech outage. Despite this incident, the company has demonstrated consistent growth, reporting a 33% year-over-year increase in revenue in the first quarter of fiscal 2025. Investment banks, including Oppenheimer, maintain a positive outlook on CrowdStrike, with a price target implying a potential upside of 71%.
Another Nasdaq stock with significant upside potential is Baidu, often referred to as the “Google of China.” As the dominant search leader in China, Baidu leverages consumer information to effectively target digital advertising. The company’s investment in generative artificial intelligence (AI) positions it for future growth. Although Baidu’s recent financial results were impacted by a weak economy, Wall Street analysts, such as Fawne Jiang from Benchmark, anticipate substantial growth driven by the company’s AI cloud business. The stock’s current price presents an opportunity, with a potential upside of 102%.
Both CrowdStrike and Baidu have garnered support from Wall Street, with a majority of analysts rating them as a buy or strong buy. CrowdStrike’s reputation and response to the recent outage have been commended, while Baidu’s AI capabilities and attractive valuation contribute to its positive outlook.