Shares of self-defense company Axon (NASDAQ: AXON) saw a 4% increase during the afternoon trading session after TD Cowen, an investment firm, reiterated its “buy” rating on the stock, along with a price target of $925. The firm expressed confidence in Axon’s growth potential.
After a recent gathering with investors, TD Cowen emphasized its positive outlook on public safety technology firms. They pointed out several growth factors such as advancements in AI, the integration of drones, and opportunities for international expansion. Axon’s solid foundation, marked by a 32.41% revenue growth recently, reinforces this optimistic perspective. Even though the company had raised its guidance in early August to highlight strong second-quarter performance, it has since seen a slight decline of about 13%, potentially making current prices more attractive for investors.
Following an initial surge, the stock adjusted to $788.81, which reflects a 4.6% increase from the previous close.
Regarding whether it’s the right time to invest in Axon, the stock has been notably volatile, with 22 instances of over 5% movement in the past year. This day’s fluctuations suggest the market finds the latest news significant, though it doesn’t drastically alter the company’s overall perception.
A notable shift occurred 13 days ago when the stock rose 15.4% after Axon announced its second-quarter financial results and increased its full-year forecasts. The firm reported a 33% year-on-year revenue growth, reaching $669 million, exceeding analysts’ expectations. Earnings per share stood at $2.12, marking a substantial increase compared to last year—more than 37% higher than estimates. This robust performance is largely due to a 39% rise in the company’s margin software and service revenue. Additionally, Axon’s annual recurring revenue (ARR), a crucial indicator of demand sustainability, grew by 39%, now at $1.2 billion. Following this strong quarter, Axon raised its annual revenue and adjusted revenue guidance.
Since the beginning of the year, Axon’s stock has increased by 32.2%, although at $788.81 per share, it remains 9.4% below its 52-week peak of $870.97 recorded in August 2025.
It’s becoming increasingly evident that generative AI is set to influence how large companies operate. While giants like Nvidia and AMD are nearing their all-time highs, there’s also interest in lesser-known yet profitable semiconductor stocks that benefit from the AI surge.
