ZACKS·2026-03-11 13:30Core Insights - The significant bull run in Wall Street over the past three years is attributed to the rapid growth of artificial intelligence (AI), with technology stocks, particularly AI-related ones, experiencing a surge of 300-400% during this period [1]. Group 1: Technology Sector Performance - The technology sector faced challenges in 2026 due to concerns over the sustainability of AI trade and geopolitical tensions in the Middle East, leading to a spike in crude oil prices that could increase inflation and create uncertainty regarding the Federal Reserve's interest rate policies [2]. - Despite these challenges, several AI infrastructure stocks have shown strong performance recently, with five stocks recommended for their favorable Zacks Rank, indicating potential for further upside [3][4]. Group 2: Individual Company Analysis Vertiv Holdings Co. (VRT) - Vertiv Holdings has a Zacks Rank of 2 and benefits from a diverse product portfolio, including thermal systems and modular solutions, driven by data center growth and AI demand [7]. - The company is expanding its capacity to support AI initiatives and has made strategic acquisitions to enhance its service capabilities [8]. - A partnership with NVIDIA Corp. is a key growth driver, co-developing an 800-volt DC power architecture aligned with NVIDIA's future AI platforms [9]. - Vertiv's expected revenue and earnings growth rates are 33.8% and 46.4%, respectively, with a 15% improvement in earnings estimates over the last month [10]. HubSpot Inc. (HUBS) - HubSpot holds a Zacks Rank of 1 and is experiencing strong adoption of its multi-hub offerings among enterprise customers, with pricing optimization leading to increased client additions [11]. - The integration of AI features across its product suite is enhancing customer value, with expectations for continued growth driven by pricing strategies [12]. - HubSpot's expected revenue and earnings growth rates are 17.9% and 26.9%, respectively, with a slight improvement in earnings estimates recently [13]. Dell Technologies Inc. (DELL) - Dell Technologies has a Zacks Rank of 2 and is benefiting from robust demand for AI servers, securing $34.1 billion in AI server orders, which has built a strong backlog [14]. - The company has a solid partner network, including NVIDIA and Google, which supports its growth in AI server demand [15]. - Dell's expected revenue and earnings growth rates are 24.2% and 23.4%, respectively, with a 12.5% increase in earnings estimates over the last month [18]. Keysight Technologies Inc. (KEYS) - Keysight Technologies has a Zacks Rank of 1 and is experiencing growth due to strong demand for its electronic design and test solutions, particularly in AI-driven sectors [19]. - The company is focusing on expanding its business through collaborations and is well-positioned in emerging markets like IoT and high-speed data centers [21]. - Keysight's expected revenue and earnings growth rates are 22.8% and 16.9%, respectively, with a 4.2% improvement in earnings estimates recently [22]. Cognex Corp. (CGNX) - Cognex holds a Zacks Rank of 1 and is focused on leading AI in industrial machine vision, benefiting from margin expansion and a strong balance sheet [23]. - The company is diversifying its growth across various sectors, including logistics and consumer electronics, while maintaining a debt-free status [24]. - Cognex's expected revenue and earnings growth rates are 7.9% and 23.5%, respectively, with an 11.5% increase in earnings estimates over the last month [25].