From Yahoo Finance: 2025-05-21 19:56:00

In recent news, China is angered by US sanctions on chip use, threatening legal action against those assisting or implementing the measures. The US warned against using Ascend AI chips from Huawei, prompting China to criticize the move as discriminatory and threatening corresponding legal liabilities.

The US sanctions are aimed at hindering China’s progress in the AI arms race. Despite this, the effectiveness of the strategy remains uncertain, with Jensen Huang calling the AI diffusion rule a failure. The sales block on advanced AI chips has forced China to invest heavily in a self-reliant supply chain.

Palo Alto Networks, Inc. (NASDAQ:PANW) received a price target boost from Goldman Sachs, with an optimistic outlook on the company’s strategic position in the cybersecurity industry. Analyst Gabriela Borges highlighted Palo Alto’s potential to lead security discussions and benefit from industry consolidation in the AI security sector.

Despite mixed performance over the past quarters, Palo Alto is positioned to lead enterprise security discussions and consolidate spending in the medium term. Analyst Borges maintains a “Buy” rating, foreseeing consolidation in the next-gen AI security vendor field benefiting Palo Alto alongside CrowdStrike and Microsoft.

Palo Alto Networks ranks 9th on the list of AI stocks on analysts’ radar. While PANW shows promise as an investment, other AI stocks may offer higher returns with limited downside risk. Investors seeking AI stocks with significant upside potential are encouraged to explore other options beyond PANW.

Read more: Palo Alto (PANW) Gets Price Target Boost, Goldman Sachs Stays Bullish