Zoom (ZM) Earns Buy Rating as Rosenblatt Lifts Price Target to $110 on AI Momentum

Zoom Communications Inc. (NASDAQ:ZM) is one of the Hot AI Stocks to Keep on Your Radar. On August 22, Rosenblatt analyst Catharine Trebnick raised the price target on the stock to $110.00 (from $100.00) while maintaining a Buy rating.

According to the firm, Zoom posted its strongest revenue growth in 11 quarters driven by increasing enterprise demand, rapid AI adoption, and continued Contact Center momentum. It also raised its fiscal 2026 guidance.

Enterprise revenues have also grown, reflecting the successful expansion into large accounts. That said, the firm believes that Zoom offers greater growth visibility, continued share repurchases, and expanding opportunities for artificial intelligence monetization.

“Notably, management raised full-year FY26 guidance across revenue, PF EPS, and free cash flow, underscoring both top-line stability and industry-leading profitability (41% op.margin, 80% gross margin). With greater growth visibility, a strong $7.8B cash balance, continued share repurchases, and expanding opportunities for AI monetization, we reiterate our Buy rating and raise our price target to $110 (from $100) on the back of these robust results and upwardly revised estimates. The next key catalyst is Zoomtopia in September.”

Zoom Video Communications, Inc. (NASDAQ:ZM) is a communications technology company.

While we acknowledge the potential of ZM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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