While concerns over trade wars have eased, the U.S. stock market continues to be volatile due to persistent macro uncertainty. Despite the ongoing volatility, Wall Street remains bullish on several growth stocks due to their potential to capture opportunities in lucrative markets and deliver strong returns. Using TipRanks’ Stock Comparison Tool, we placed Cava Group (CAVA), Tempus AI (TEM), and Super Micro Computer (SMCI) against each other to find the growth stock with the highest upside potential, according to Wall Street analysts.
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Cava Group (NYSE:CAVA)
Mediterranean fast-casual restaurant chain Cava Group recently reported upbeat results for the first quarter of Fiscal 2025. The company defied the weakness in the broader industry and delivered same-store sales growth of 10.8% and revenue growth of 28.2%. Cava Group experienced positive traffic across all its geographies and income cohorts.
Cava reaffirmed its full-year same-store sales growth guidance in the range of 6% to 8% but increased its adjusted EBITDA outlook. CAVA stock is down about 29% year-to-date, reflecting investors’ disappointment related to the conservative full-year revenue outlook and concerns about macro uncertainty.
Looking ahead, Cava Group plans to open between 64 and 68 net new locations, up from the previous outlook of 62 to 66 openings.
Is CAVA Stock a Good Buy?
Following the Q1 print, Bernstein analyst Danilo Gargiulo reiterated a Buy rating on CAVA stock with a price target of $115. The analyst contends that there are more reasons to be bullish on CAVA stock, even as Bears argue that the 10.8% same-store sales growth in Q1 2025 was below buy-side expectations (but above the consensus estimate of 10.4%), driving the post-market negative reaction. Gargiulo believes that Cava’s performance “left many strong indicators of an even more favorable trajectory to come.”
The analyst also highlighted strong performance across income and geography cohorts, the company’s in-control supply chain despite tariff risk, and improving productivity of new units. While management maintained its same-store sales outlook, Gargiulo attributed the conservative estimate to the volatile consumer backdrop and believes that CAVA Bulls will look beyond the short-term performance, with focus now turning on long-term sustainable growth.
With nine Buys and seven Holds, Wall Street has a Moderate Buy consensus rating on CAVA Group stock. The average CAVA stock price target of $118.43 implies 46.1% upside potential.
Tempus AI (NASDAQ:TEM)
Tempus AI is a technology company that is advancing precision medicine by leveraging artificial intelligence (AI) in healthcare. TEM stock has rallied about 86% year-to-date, with the company making notable progress in advancing its AI solutions in the field of oncology.
The company has entered into multi-year, strategic collaborations with AstraZeneca (AZN) and Pathos to build a multimodal foundation model in oncology, which involves $200 million in additional data licensing and model development fees to Tempus over the next three years.
Tempus AI was in focus recently after a report by short seller Spruce Point Capital alleged that the company’s growth story was largely driven by hype and retail investor enthusiasm. The report warned of a potential 50% to 60% downside in TEM stock, cautioning investors to look past the ongoing buzz while raising concerns over certain accounting practices, related-party transactions, and other issues. In reaction, Tempus AI dismissed the short-seller’s allegations, stating that the report was “riddled with hypotheticals and inaccuracies.”
Is TEM a Good Stock to Buy?
Following the short seller report, TD Cowen analyst Daniel Brennan reiterated a Buy rating on Tempus AI stock with a price target of $62. The 4-star analyst contended that many of the issues in the short seller report were already known, some points were exaggerated, while some new ones are worth exploring. Brennan finds some of the stated concerns misleading or incorrect, while others have been known and previously disclosed.
Given the year-to-date rally prior to the short-seller report, Brennan believes that Tempus AI’s valuation “didn’t leave much room for negative news.”
Wall Street has a Moderate Buy consensus rating on Tempus AI stock based on six Buys and three Holds. The average TEM stock price target of $66.25 indicates about 7% upside potential.
Super Micro Computer (NASDAQ:SMCI)
AI server maker Super Micro Computer’s stock has risen more than 43% year-to-date. The company has moved beyond the troubles faced last year, including accusations related to accounting irregularities and delays in the filing of financial statements.
Despite SMCI’s dismal fiscal third-quarter results and weak guidance, investors are optimistic about the company due to robust growth opportunities amid the AI boom. Especially, deals like the recently announced $20 billion partnership with DataVolt to develop hyperscale AI campuses in Saudi Arabia and the U.S. have reinforced investors’ optimism.
Is SMCI Stock a Good Buy?
Recently, Mizuho analyst Vijay Rakesh reaffirmed a Hold rating on Super Micro Computer stock but increased the price target to $40 from $32. The 5-star analyst increased the price targets for several AI server-related stocks, citing rising demand and momentum across the supply chain. While Rakesh increased the price target for SMCI stock due to its leadership in AI server deployments, he remains sidelined due to growing competition and weak AI server margins.
Overall, with six Buys, five Holds, and one Sell recommendation, Super Micro Computer stock scores a Moderate Buy consensus rating. At $40.83, the average SMCI stock price target implies a downside risk of 5.5%.
Conclusion
Amid macro challenges, Wall Street is cautiously optimistic on all three growth stocks discussed above. Analysts see higher upside potential in CAVA stock compared to the other two growth stocks. Despite pressures in the broader industry, the company’s impressive growth rates support analysts’ expectations for solid upside potential from current levels.