When President Trump rolled out his tariff policy in early April, it rattled the stock market, unleashing volatility and stoking investor unease. Many feared the sweeping measures would strangle international commerce and further disrupt fragile supply chains.
Still, not everyone was bracing for the worst. Some believed Trump was making a calculated move to draw countries into negotiations, and that new trade agreements could arrive sooner rather than later.
In fact, it is expected that the US and UK will announce a trade deal today (Thursday). Moreover, China is now on board with trade talks. The US treasury secretary, Scott Bessent, and the top US trade envoy will be meeting with their Chinese peers in Switzerland this coming weekend. Bessent has said that he hopes the Geneva-based talks will focus on de-escalation, and markets in both China and the US are reacting positively.
This development offers hope that the long-term bull market may get back on track, and some of Wall Street’s top analysts are now looking for potential winners in a growth-oriented environment.
5-star analyst Nehal Chokshi, of Northland, who is rated by TipRanks among the top 1% of Wall Street’s experts, has been doing just that – and he sees two tech stocks with a sound growth story ahead.
We dove into the TipRanks database to uncover the details and see how the rest of Wall Street views these picks. Let’s take a closer look at Chokshi’s bullish bets.
Allot, Ltd. (ALLT)
Up first is Allot, a technology firm that brings provider security and network intelligence together. The company builds its solutions on data, collating network, application, usage, and security information to develop actionable intelligence for its customers, based on smarter networks for more secure applications. Allot operates worldwide, providing security solutions for mobile, fixed, and converged networks, anywhere, on any device, against any threat.
Every tech firm needs a target audience, and Allot has tailored its approach to the consumer and small- to mid-sized business markets. The company’s solutions are made available on a subscription basis, and give subscribing users a zero-touch, network-native approach that enables 360-degree security. Allot notes that its platforms are deployed by more than 1,000 enterprise customers and over 500 mobile, cloud, and fixed service providers globally, and are regularly used by many millions of subscribers.
In an important development for Allot, the company recently locked in a Security-as-a-Service (SECaaS) expansion with the mobile provider Verizon, to power Verizon’s mobile business security. The Verizon agreement marks a significant expansion of Allot’s addressable customer base, and brings, potentially, millions of Verizon business mobile subscribers into Allot’s orbit. This gives Allot a strong foundation for accretive revenue and profitability growth through the rest of 2025 and going forward.
Allot’s last financial release covered 4Q24, and for that quarter the company reported revenues of $24.9 million, up 2.3% year-over-year, and earnings of 5 cents per share by non-GAAP measures. The company’s operating cash flow in the fourth quarter came to $4.1 million. Allot finished 2024 with $58.8 million in cash and other liquid assets on hand.
Top analyst Chokshi is bullish on this cybersecurity company, basing his view mainly on the company’s potential to expand from its current position. He writes, “Reiterating ALLT as a top pick as drivers of durable 30+% growth becoming increasingly clear… We believe VZ’s latest launch of My Biz Plan for business mobile users (30M subscribers), powered by ALLT’s Security as a Service (SECaaS) bundled as a base option within the premium bundle, offers the highest value option to ALLT. This makes us believe ALLT is in the early innings of delivering durable 30+% SECaaS revenue (and ARR) growth for many years to come… Management remains confident in sustaining a strong initial double-digit ARR and SECaaS revenue growth guidance for CY25, with potential upside from additional regions not yet included in the outlook. The team also targets positive FCF each quarter of CY25, exceeding CY24.” (To watch Chokshi’s track record, click here)
These comments back up Chokshi’s Outperform (i.e., Buy) rating on the stock, while his $13 price target implies that the shares will gain 127.5% over the next 12 months. The Northland analyst’s recommendation is the only review currently on file for ALLT, which is priced at $5.72 per share. (See ALLT stock forecast)
Nebius Group (NBIS)
The next stock we’ll look at, Nebius Group, is a Dutch-based tech firm specializing in developing the infrastructure needed to support the rapidly expanding AI sector. The company builds out a variety of services, including computing, storage, platforms, and tools that are in high demand from AI developers. Nebius Group’s operations are built around its top-tier R&D team, which has accumulated years of experience in meeting the needs of AI professionals by building the world-class infrastructure that supports Big Tech’s AI ventures.
Nebius Group operates as a holding company, with ownership of several operational firms that provide its direct services. Chief among these is the Nebius cloud platform, its core business, which is an AI-centric cloud platform designed for intensive AI workloads that include large-scale GPU clusters. In addition, the company’s businesses include the Toloka data partner, focused on generative AI development; the TripleTen education-tech player, which helps people develop new skills for entering the tech field; and Avride, an autonomous driving technology purposed for both vehicles and robotic delivery units.
The recent history of this stock on the Wall Street markets is somewhat checkered. Nebius Group had Russian ownership prior to the Ukraine war, and in 2022 its stock was suspended from the NASDAQ index due to sanctions. After selling off the Russian ownership, the company returned to trading on the NASDAQ in October of 2024. The company’s return to public trading on Wall Street has naturally brought it back to investors’ attention.
Looking at the company’s latest financial results, we find that the 4Q24 report showed quarterly revenue of $37.9 million, amounting to a year-over-year increase of an impressive 466%. Growth in the AI infrastructure business, which was up 602% y/y, was the main driver of the company’s revenue. However, the net loss reached $136.6 million, widening from $72.9 million a year ago. Still, as of December 31, 2024, Nebius Group had deep pockets, with nearly $2.45 billion in available cash and cash equivalent assets.
Nehal Chokshi is impressed by this company, especially by its growth and its ability to build itself as a solid brand in the AI industry. He says of Nebius Group, “Our research indicates NBIS is establishing its brand as the GPUaaS cloud with the easiest and faster deployment of GPU clusters for startups and enterprises relative to hyperscalers and with a cost advantaged offering that is currently 6x less than AWS and we expect even with pricing power exercised over time, will durably be priced at least a parity or below that of the hyperscalers.”
Looking ahead, Chokshi describes a case for continued revenue expansion and cash generation here, adding of the company, “With given current capacity plans out to CY25, we estimate that NBIS will achieve 1% AIaaS market share in CY25 and will be well positioned to achieve our 1.25% terminal period market share estimate. Additionally, we believe NBIS is well positioned to deliver a 21% FCF margin. These parameters lead to a terminal period revenue estimate of $7B and FCF estimate of $1.45B, which our analysis suggests that NBIS can largely self-fund with the exception of ~$1B of debt at a 10% interest rate we presume will be taken in C2H26.”
Chokshi goes on to rate NBIS shares as Outperform (i.e., Buy), and he gives the stock a $34 price target that points toward a one-year upside potential of 24%.
Overall, this stock is rated as a Strong Buy, based on a unanimous 3 positive analyst reviews in recent weeks. The stock’s $27.45 trading price and $41.33 average target price together imply that it has a gain of 50.5% waiting for it in the months ahead. (See NBIS stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.