3 Beaten-Down Tech Stocks That Could Soar 40% or More, According to Wall Street

"Buy low, sell high" is one of the most well-known investing adages. The main problem with following this four-word strategy, though, is knowing which low stocks are most likely to rise in the future.

Analysts with major investment firms are paid big bucks to identify those kinds of stocks. Here are three beaten-down tech stocks that could soar 40% or more, according to Wall Street.

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1. ServiceNow

ServiceNow (NYSE: NOW) provides an artificial intelligence platform that enables customers to automate workflows. The company calls itself "the AI control tower for business reinvention." Its global customer base includes over 85% of the Fortune 500.

However, ServiceNow has been one of the victims of the so-called "SaaSpocalypse," a major sell-off of SaaS stocks on worries that AI will render many SaaS products obsolete. The company's share price is now more than 50% below its peak set in early 2025.

Wall Street thinks ServiceNow can bounce back. The consensus 12-month price target reflects a potential upside of 62%. Of the 44 analysts surveyed by S&P Global (NYSE: SPGI) in March who cover ServiceNow, 40 rated the stock as a "buy" or "strong buy."

Is this optimism warranted? I think so. ServiceNow continues to deliver strong growth, with revenue jumping 20.5% year over year in the fourth quarter of 2025. Its renewal rate of 98% remains exceptionally high. CEO Bill McDermott stated in the Q4 update, "With our consistent Rule of 55+ profile, there is no AI company in the enterprise better positioned for sustainable profitable revenue growth than ServiceNow." He could be right.

2. Microsoft

Microsoft (NASDAQ: MSFT) ranks as the world's third-largest technology company by market cap. The tech giant is a leader in cloud services, productivity software, operating systems, gaming systems, quantum computing, and more.

After flying high in 2023, 2024, and much of 2025, Microsoft's stock momentum stalled in the fourth quarter of last year. The company's slowing growth in cloud services and increased AI-related capital expenditures raised concerns among many investors.

Is Wall Street worried about Microsoft? Nope. The average 12-month price target for Microsoft is roughly 46% higher than its current share price. Fifty-four of the 57 analysts recently surveyed by S&P Global rated the stock as a "buy" or better.

I suspect most analysts recognize that Microsoft's capital expenditures aren't risky, since most of the capital the company is deploying is for GPUs that are already contracted for most of their useful life. Wall Street also knows that agentic AI presents a significant growth opportunity for Microsoft.

3. Salesforce

Salesforce (NYSE: CRM) pioneered cloud-based customer relationship management (CRM) systems in 1999. It's now the global CRM leader, a position the company has held for 12 consecutive years. Salesforce has also emerged as a top innovator in agentic AI with its Agentforce platform.

Like ServiceNow, Salesforce was hit hard by the "SaaSpocalypse." Its stock is down almost 50% from the record high achieved in late 2024 and has fallen roughly 27% so far this year.

Wall Street thinks the downturn will only be temporary. The consensus 12-month price target for Salesforce reflects an upside potential of around 42%. Of the 54 analysts surveyed by S&P Global in March, 41 rated the stock as a "buy" or "strong buy."

I think the numbers back up this optimistic outlook. Salesforce continues to deliver double-digit revenue growth. Management expects accelerating growth in the second half of the current fiscal year. Meanwhile, Salesforce's shares trade at only 15 times forward earnings.

The sell-off of this stock appears to be overdone, in my view. Although I'm not sure if Salesforce's stock will soar more than 40% over the next 12 months, I expect a solid rebound.

Keith Speights has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft, S&P Global, Salesforce, and ServiceNow. The Motley Fool has a disclosure policy.