The Federal Reserve recently left interest rates steady following three straight cuts since September 2024, citing a stronger labor market and stubborn inflation. Despite an uncertain macro backdrop, several growth stocks continue to be resilient. Using TipRanks’ Stock Comparison Tool, we placed Intuitive Surgical (ISRG), SoFi Technologies (SOFI), and Micron Technology (MU) against each other to find the growth stock that could generate the highest returns, according to Wall Street analysts.
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Intuitive Surgical (NASDAQ:ISRG)
Intuitive Surgical is the maker of the popular da Vinci Systems and is considered a pioneer in the robotics-assisted surgery space. ISRG recently reported better-than-expected results for the fourth quarter of 2024, driven by a rise in global procedure volumes and strong da Vinci 5 system placements.
However, the company’s 2025 da Vinci procedures growth guidance in the range of 13% to 16% indicated a slowdown from the 17% growth in 2024 and disappointed investors. Nonetheless, several analysts remain bullish on Intuitive Surgical’s growth potential and contend that this is a conservative guidance that the company can surpass.
Is ISRG Stock a Buy, Sell, or Hold?
Following the Q4 print, Raymond James analyst Jayson Bedford raised the price target for Intuitive Surgical to $688 from $560 while reiterating a Buy rating. Bedford highlighted that the Q4 2024 EPS (earnings per share) upside was even bigger than what most investors imagined, thanks to solid margins. He added that while ISRG’s guidance does not assume that this margin momentum will persist in 2025, there remains much scope for margin expansion.
He expects the complete rollout of the da Vince 5 systems to support mid-teens revenue and EPS growth for many years.
Overall, Intuitive Surgical stock commands a Strong Buy consensus rating based on 16 Buys and five Holds. The average ISRG stock price target of $653.74 implies 10.5% upside potential.
SoFi Technologies (NASDAQ:SOFI)
Fintech giant and digital bank SoFi Technologies has seen its stock rally 82% over the past year, driven by strong financials. However, the stock is down about 2% year-to-date, as the company’s recently announced Q1 2025 profitability guidance lagged expectations and overshadowed the market-beating fourth-quarter results.
Interestingly, SoFi reported its fifth consecutive quarter and first full year of GAAP profitability. The company ended the year with more than 10 million members, marking a 34% year-over-year increase. Moreover, SoFi is benefiting from its shift toward high return on equity (ROE), fee-based revenue streams. It is worth noting that the Financial Services and Tech Platform segments together accounted for 49% of SoFi’s Q4 adjusted net revenue, up from 40% in the prior-year quarter.
Is SOFI Stock a Buy, Sell, or Hold?
Following the Q4 print, Goldman Sachs analyst Michael Ng reiterated a Hold rating on SoFi Technologies stock and raised the price target from $8.50 to $9.50. The analyst stated that the company’s 2025 EBITDA outlook missed expectations as the company is investing in the expansion of its financial services products.
While the analyst acknowledged SoFi’s momentum in Financial Services, he noted that several large businesses still have negative variable profits. Moreover, new business deals in the Technology Platform are taking more-than-expected time for implementation. Overall, Ng prefers to remain on the sidelines due to SOFI stock’s relatively balanced risk/reward profile.
With five Buys, six Holds, and four Sells, SoFi Technologies stock scores a Hold consensus rating on TipRanks. At $14.35, the average SOFI stock price target implies 3.2% downside risk.
Micron Technology (NASDAQ:MU)
Micron is one of the leading manufacturers of DRAM and NAND memory chips. The company is expected to gain from the robust demand for high-bandwidth memory (HBM) chips. Remarkably, Micron witnessed a 400% rise in its data center revenue in the first quarter of Fiscal 2025, thanks to AI-led demand.
However, the company’s Q2 guidance fell short of expectations, and management cautioned that it expects further delay in the PC refresh cycle and instances of elevated customer inventory in smartphones.
Overall, Micron’s data center business is gaining from the AI wave, but concerns remain about the slower-than-expected sales in consumer-focused markets like PCs, smartphones, and auto. Moreover, on February 12, CFO Mark Murphy reaffirmed the company’s Q2 FY25 outlook but warned of margin pressures in the third quarter due to broader industry challenges and a shift in customer mix. Nonetheless, most analysts are looking beyond the near-term challenges and focusing on Micron’s long-term growth potential based on the demand for the company’s AI offerings.
Is Micron a Good Stock to Buy Now?
Recently, UBS analyst Timothy Arcuri reiterated a Buy rating on Micron Technology stock with a price target of $125. The analyst said that he adjusted his model for Micron based on industry checks on pricing. Arcuri further reduced his pricing assumptions for 2025 to reflect near-term inventory issues stretching for a bit longer than previously anticipated. That said, he expects a return to modest DRAM undersupply by Q4 2025 and through 2026.
Arcuri remains bullish on Micron’s HBM roadmap, especially for HBM3E 12-Hi used by Nvidia (NVDA), due to competitor qualification delays. While the analyst acknowledged that it is a bit difficult to see an immediate catalyst for the stock, he sees no change in the big picture as Micron has established technology leadership, with the HBM ramp channeling wafers away from traditional PC/smartphone memory markets.
Overall, Micron scores a Strong Buy consensus rating based on 21 Buys and two Holds. The average MU stock price target of $136.10 implies about 45% upside potential. Micron stock has risen about 12% over the past year.
Conclusion
Wall Street is highly bullish on Intuitive Surgical and Micron stocks and sidelined on SoFi Technologies stock. Analysts see higher upside potential in Micron stock than in the other two growth stocks. Despite near-term challenges and concerns related to margins, Micron is expected to gain from the demand for its advanced offerings in AI applications.
