ZACKS·2025-12-16 14:01Group 1: Market Outlook - The stock market is expected to rise in 2026 due to AI-driven earnings growth and lower interest rates, prompting investors to consider stocks with high upside potential as 2025 concludes [1][2] - Total S&P 500 earnings growth is projected to reach 12.3% in FY26, an increase from 11.4% in FY25 [2] Group 2: AI Investment Trends - Major companies, including Amazon, Microsoft, Alphabet, and Meta, are projected to spend $400 billion on capital expenditures in 2025, representing a 300% increase from 2018 levels [3] - Global capital expenditures on data center infrastructure are expected to reach $7 trillion by 2030, driven by the demands of the AI era [3] Group 3: First Solar (FSLR) - First Solar is positioned for significant earnings and revenue growth as the U.S. aims to enhance domestic solar production, with a projected revenue increase of 22% in FY25 and FY26, reaching $6.27 billion [8][15] - FSLR's adjusted earnings per share (EPS) is expected to grow by 22% in 2025 and 59% in 2026, reaching $23.30 per share [15] - The company has a strong balance sheet with $13.5 billion in assets and a booking backlog of 53.7 GW extending through 2030 [14] Group 4: Arista Networks (ANET) - Arista Networks is a key player in AI infrastructure, projected to grow its revenue by 27% in FY25 and 21% in FY26, reaching $10.73 billion [25] - The company has a robust balance sheet with $10.1 billion in cash and no debt, supporting its expansion in the AI sector [23] - ANET's adjusted earnings are expected to grow to around $4 per share by 2028, up from $2.27 in 2025 [26]