These stocks are favored by top Wall Street analysts for their growth potential.

The S&P 500 was lifted in 2024 due to optimism about artificial intelligence, which also boosted key chip stocks and utilities.

To achieve sustainable returns, investors must focus on companies with robust long-term growth prospects.

Wall Street analysts, with their expertise, can assist investors in comprehending the critical factors that may drive a company's long-term growth and select stocks that are likely to yield substantial returns.

According to TipRanks, which ranks analysts based on their past performance, the Street's top pros favor these three stocks.

Fortinet

This week's first pick is cybersecurity company Fortinet (FTNT). The company aims to become a leader in the secure access service edge space. Fortinet uses machine learning and AI technologies to provide cybersecurity solutions.

Shaul Eyal, a TD Cowen analyst, recently reaffirmed a buy rating on Fortinet stock and increased the price target from $75 to $90. According to the analyst, channel checks and discussions with industry participants suggest that Fortinet's business is recovering and there is healthy demand across its diverse product line.

According to channel checks, Fortinet's third-quarter revenue and billings are expected to exceed the company's outlook, with a potential for a slight increase. Additionally, the analyst is optimistic about his Q4 revenue growth forecast of 12%, based on strong closure rates and continued pipeline development.

Eyal observed that Fortinet's ongoing recovery is being supported by the strong performance of its operational technology products, which have a long-term replacement cycle, and the adoption of AI-led networks, as well as the company's growing emphasis on cloud security, which was boosted by the recent acquisition of Lacework.

Eyal is ranked No. 12 among more than 9,100 analysts on TipRanks, with a profitable rating 71% of the time and an average return of 27.3%. (Check out Fortinet Insider Trading Activity on TipRanks)

GitLab

We proceed to (GTLB), a cloud-based software company that utilizes AI technology to boost developer productivity, optimize operations, and minimize security and compliance risks.

After discussing with the company's management, Gregg Moskowitz, an analyst at Mizuho, maintained a buy rating on GitLab stock with a price target of $62. Moskowitz pointed out that the management is optimistic about seizing more opportunities in the $40 billion total addressable market. Currently, GitLab and Microsoft's GitHub together hold only around 5% of the market share in the software development life cycle space.

The analyst noted that GitLab's Duo Pro product is expected to gain momentum in 2025, thanks to the generative AI wave, while the company's Dedicated offering is experiencing better-than-expected customer interest and generating higher average revenue per unit.

Moskowitz believes that GTLB has the potential to excel and expand in the long run, thanks to several positive factors such as increasing seats, raising prices, and exploring additional revenue streams.

Among more than 9,100 analysts tracked by TipRanks, Moskowitz ranks No. 321. His ratings have been profitable 58% of the time, delivering an average return of 12.6%.

Nvidia

NVDA, a semiconductor giant, has experienced impressive revenue growth due to high demand for its advanced GPUs in AI applications.

After meeting with Nvidia's management, Goldman Sachs analyst Toshiya Hari maintained a buy rating on NVDA stock and increased the price target from $135 to $150.

The analyst's optimism after the meeting stems from a "more accurate understanding of the company's competitive advantage and the anticipated rise in Inference workload complexity, which will have a significant impact on future computing requirements."

Nvidia's management is confident about the demand backdrop due to continued spending on accelerated computing and GPUs by data center operators during the generative AI wave. The analyst believes that the launch and ramp-up of Nvidia's Blackwell platform are not only short- and medium-term revenue growth drivers but also crucial factors that will strengthen its competitive advantage.

Hari revised his revenue projections for the next three years, taking into account recent advancements in the cloud industry, strong demand from major AI server manufacturers such as Dell and Hewlett Packard Enterprise, and a more optimistic outlook for chip-on-wafer-on-substrate shipments.

Among more than 9,100 analysts tracked by TipRanks, Hari ranks No. 32. His ratings have been successful 68% of the time, delivering an average return of 27.5%. (See Nvidia Stock Charts on TipRanks)