Market Overview - Wall Street experienced a significant rally over the past three years, primarily driven by advancements in artificial intelligence (AI) technologies, which continued into early 2026 [1] - Recent geopolitical tensions, rising crude oil prices, and persistent inflation have led to skepticism among financial experts regarding the sustainability of the AI trade [1] Technology Sector Performance - The Nasdaq Composite index fell by 4.2% in the past month, while the Technology Select Sector SPDR (XLK) decreased by 3% [2] - Despite these challenges, several large-cap technology stocks have shown positive performance, with recommendations for four stocks expected to gain in the near future [2] Recommended Stocks - The recommended stocks include Dell Technologies Inc. (DELL), Ciena Corp. (CIEN), Lumentum Holdings Inc. (LITE), and Samsara Inc. (IOT), all carrying favorable Zacks Ranks of 1 (Strong Buy) or 2 (Buy) [3] Dell Technologies Inc. (DELL) - DELL has secured $34.1 billion in AI server orders, indicating strong demand driven by digital transformation and interest in generative AI applications [6][9] - The company reported $9 billion in revenue from AI server demand in Q4 2025, with a customer base exceeding 4,000 across various industries [7] - DELL's expected revenue and earnings growth rates for the current year (ending January 2027) are 24.2% and 24%, respectively, with a recent 0.6% improvement in earnings estimates [11] Ciena Corp. (CIEN) - CIEN has gained 2 points of optical market share year-to-date, driven by AI-led demand from cloud and service provider customers [12] - The company raised its fiscal 2026 revenue outlook to $5.7-$6.1 billion, reflecting nearly 24% growth at the midpoint, up from a prior estimate of 17% [13] - CIEN's expected revenue and earnings growth rates for the current year (ending October 2026) are 27.1% and over 100%, respectively, with a 13.4% improvement in earnings estimates [14] Lumentum Holdings Inc. (LITE) - LITE designs and manufactures optical technologies for telecommunications and data centers, benefiting from the growth of AI and cloud computing [15] - The company reported significant revenue growth driven by demand for AI infrastructure connectivity solutions [16] - LITE's expected revenue and earnings growth rates for the current year (ending June 2026) are 77% and over 100%, respectively, with a slight 0.1% improvement in earnings estimates [18] Samsara Inc. (IOT) - Samsara provides solutions that connect physical operations data to its connected operations cloud, utilizing wireless sensors and cloud-based analytics [19] - The company's Connected Operations Cloud includes capabilities for AI, workflow analytics, and data security [20] - Samsara's expected revenue and earnings growth rates for the current year (ending January 2027) are 21.9% and 21.4%, respectively, with a notable 19.3% improvement in earnings estimates [21]

Market Overview - The S&P 500 Index experienced significant growth over the past three years, driven by advancements in artificial intelligence (AI), low-interest rates, and accommodative monetary policies from the Federal Reserve and other central banks, alongside a decline in inflation rates [1] - In 2026, the index faced challenges due to concerns about the sustainability of AI trade and geopolitical conflicts in the Middle East, leading to a surge in crude oil prices that could increase inflation and raise doubts about the Fed's continuation of interest rate cuts [2] Investment Opportunities - Three S&P 500 stocks with favorable Zacks Ranks that have shown double-digit returns in the past month are Dell Technologies Inc. (DELL), Keysight Technologies Inc. (KEYS), and Ciena Corp. (CIEN), each holding a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [3] Dell Technologies Inc. (DELL) - DELL benefits from strong demand for AI servers, securing $34.1 billion in AI server orders, which has led to a robust backlog and strong enterprise demand [6][9] - The company has a solid partner base, including NVIDIA, Google, and Microsoft, contributing to its growth, with AI server demand adding $9 billion to Q4 2025 revenues [7] - DELL's expected revenue and earnings growth rates for the current year (ending January 2027) are 24.2% and 23.4%, respectively, with a 12.5% improvement in the earnings consensus estimate over the last 30 days [11] Keysight Technologies Inc. (KEYS) - KEYS is experiencing growth due to strong industry demand for its electronic design and test solutions, driven by the adoption of AI in the semiconductor sector [12] - The company is focusing on expanding its business through collaborations and has seen strong demand in AI data-center network solutions [13] - KEYS has an expected revenue growth rate of 22.8% and an earnings growth rate of 16.9% for the current year (ending October 2026), with a 4.2% improvement in the earnings consensus estimate over the last 30 days [15] Ciena Corp. (CIEN) - CIEN is benefiting from increased demand driven by cloud and service provider customers, gaining market share and expecting further growth in 2026 [16] - The company raised its fiscal 2026 revenue outlook to $5.7-$6.1 billion, reflecting nearly 24% growth at the midpoint, up from a prior estimate of 17% [17] - Ciena's expected revenue growth rate is 27.1%, with earnings growth projected to exceed 100% for the current year (ending October 2026), and a 2.1% improvement in the earnings consensus estimate in the last seven days [18]

Core Viewpoint - The article highlights five AI-powered stocks that have shown significant growth in the past month and are expected to continue their upward trajectory despite challenges in the technology sector due to geopolitical tensions and inflation concerns. Group 1: AI-Powered Stocks Overview - The technology sector has experienced a bull run primarily driven by the growth of artificial intelligence, with technology stocks soaring 300-400% over the past three years [2] - Despite recent headwinds, certain AI infrastructure stocks have surged, with recommendations for Vertiv Holdings Co., HubSpot Inc., Dell Technologies Inc., Keysight Technologies Inc., and Cognex Corp. [4] Group 2: 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 [5] - The company is expanding its capacity to support AI-enabled pipelines and has made strategic acquisitions to enhance its service capabilities [6] - A partnership with NVIDIA Corp. is a key growth driver, co-developing an 800-volt DC power architecture [7] - Expected revenue and earnings growth rates for Vertiv are 33.8% and 46.4%, respectively, with a 15% improvement in earnings estimates over the last 30 days [8] Group 3: HubSpot Inc. (HUBS) - HubSpot holds a Zacks Rank of 1 and is experiencing multi-hub adoption among enterprise customers, with pricing optimization leading to client growth [9] - The company has integrated AI features across its product suite, enhancing customer value and driving growth [11] - Expected revenue and earnings growth rates for HubSpot are 17.9% and 26.9%, respectively, with a 0.3% improvement in earnings estimates over the last week [12] Group 4: Dell Technologies Inc. (DELL) - Dell Technologies has a Zacks Rank of 2 and is benefiting from strong demand for AI servers, securing $34.1 billion in AI server orders [13] - The company has a robust partner ecosystem, including NVIDIA and Google, contributing to its growth in AI-optimized servers [14] - Expected revenue and earnings growth rates for Dell are 24.2% and 23.4%, respectively, with a 12.5% improvement in earnings estimates over the last 30 days [17] Group 5: Keysight Technologies Inc. (KEYS) - Keysight Technologies has a Zacks Rank of 1 and is gaining traction from industry-wide growth in electronic design and test solutions [18] - The company is focusing on AI-driven advanced nodes and high-bandwidth memory, which are essential for semiconductor growth [19] - Expected revenue and earnings growth rates for Keysight are 22.8% and 16.9%, respectively, with a 4.2% improvement in earnings estimates over the last 30 days [21] Group 6: 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 portfolio optimization [23] - The company is experiencing balanced growth across various sectors, including logistics and consumer electronics, supported by a debt-free balance sheet [24] - Expected revenue and earnings growth rates for Cognex are 7.9% and 23.5%, respectively, with an 11.5% improvement in earnings estimates over the last 30 days [25]

Core 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].

Group 1: AI Market Overview - The AI market is projected to grow at an annual rate of 27%, reaching $826 billion by 2030 [1] - Leading AI stocks have experienced significant growth in recent years, indicating a strong investment opportunity [1] Group 2: C3.ai - C3.ai is positioned as a dark horse in the AI software market, with accelerating growth indicating potential for substantial shareholder gains [2][6] - The company closed 66 agreements in the fiscal second quarter, marking a 72% year-over-year increase [3] - C3.ai's revenue grew 26% year-over-year last quarter, up from 17% in the previous year, driven by a strategic alliance with Microsoft Azure [4] - Despite strong revenue growth, C3.ai's stock is down 28% in 2025 due to ongoing losses, but management expects positive free cash flow by fiscal Q4 2025 [5] Group 3: Dell Technologies - Dell Technologies is recognized as a leader in servers, with its infrastructure solutions business booming due to rising demand for AI-optimized servers [7] - The infrastructure solutions revenue grew 22% year-over-year in the fourth quarter, while the PC business is slowly recovering [8] - Dell's PowerEdge XE9712, an Nvidia-powered AI factory, is designed for large-scale AI deployments, and the company has a $9 billion AI server backlog [9] - The upcoming PC refresh cycle, driven by the end of life for Windows 10, is expected to incentivize upgrades [10] - Dell raised its annual dividend by 18% to $2.10, supported by strong earnings growth of 14% year-over-year in 2024 [11]