Megaport Ltd (ASX: MP1) shares have been having a tough time in recent weeks.

So much so, the ASX 200 tech stock is down 34% since 21 August.

While this is disappointing for shareholders, it could be a buying opportunity for the rest us.

That's the view of analysts at Goldman Sachs, which is tipping big returns from the network as a service provider's shares over the next 12 months.

What is the broker saying about this ASX 200 tech stock?

Goldman notes that Megaport's CEO, Michael Reid, and its CFO, Leticia Dorman, have appeared at the Communacopia + Technology Conference 2024.

It highlights that management discussed its growth prospects, artificial intelligence, and investment opportunities.

In respect to its growth prospects, Goldman points out that Megaport is benefiting from complex cloud environment and connectivity demands. It said:

Megaport considers itself the world's largest NaaS operator, and is benefiting from increasingly complex cloud environment and connectivity demands, while its product-led growth remains robust, supporting its positive net revenue retention and revenue tailwinds over the medium term.

Goldman also highlights that the ASX 200 stock stands to benefit from artificial intelligence driven demand for GPU as a service (GPUaaS). It explains:

Megaport is seeing a significant uptick in GPUaaS operators coming to market and driving demand for high levels of capacity and services within existing data centres. Latitude.sh was cited as an example of a GPU farm that is operating in 18+ Megaport locations, currently driving increased demand for MP1 connectivity.

Finally, the broker notes that the company is focused on growing profitably but sees opportunities to invest in its platform. It adds:

Megaport remains focused on profitable and efficient growth, and having built out its network, believes FY25 capex guidance of $27-30mn is reflective of its steady state. Megaport does see scope to continue investing in its core platform and go to market over time, but will stay within FY25 guidance guardrails. Management did indicate the benefits of being headquartered in Australia, allowing Megaport to attract and retain high-quality talent but pay 1/3 as much for their services compared to the SF bay area.

Big potential returns

According to the note, Goldman has responded to the presentation by retaining its buy rating and $12.00 price target on the ASX 200 tech stock.

Based on its current share price of $7.78, this implies potential upside of 54% for investors over the next 12 months.