The latest earnings season has addressed investors’ concerns about the artificial intelligence boom, thanks to the robust growth outlook and capital spending projections of many tech companies.
Investors seeking exposure to companies that are well-positioned to capture AI-led growth can track the recommendations of top Wall Street analysts, who can help pick the stocks that can deliver attractive returns over the long term.
Here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on past performance.
Broadcom
Semiconductor company Broadcom (AVGO) reported impressive fiscal third-quarter results and issued solid guidance, thanks to AI tailwinds. AVGO stock rallied following the results, as the company stated that it has secured a new $10 billion customer.
Citing strong fundamentals, JPMorgan analyst Harlan Sur reaffirmed a buy rating on Broadcom stock and boosted the price target to $400 from $325, saying that AVGO remains a top pick in semiconductors. Likewise, TipRanks’ AI Analyst has an “outperform” rating on AVGO stock with a price target of $396.
Sur attributed Broadcom’s strong results and solid revenue outlook for the October quarter to accelerating AI demand, stabilizing non-AI semiconductors, and impressive momentum in the VMware business.
The 5-star analyst noted the 18% sequential growth in AVGO’s Q3 FY25 AI revenue, with the company guiding a 19% quarter-over-quarter growth to $6.2 billion for the fiscal fourth quarter. He added that Broadcom is on track to deliver about $20 billion in AI revenue in fiscal 2025.
Sur believes that the new customer from whom Broadcom secured orders worth $10 billion is OpenAI, considering the AI inference use case and his prior research. The analyst now expects AI revenue to increase by 125% to $45 billion in fiscal 2026, followed by a 60% increase in fiscal 2027. Sur said the strength in AVGO’s AI revenue supports his view that the company’s internally developed custom AI chips offer meaningful differentiation, efficiency and improved economics.
“Despite macro volatility, Broadcom’s diversified portfolio and product cycles support a solid revenue growth profile,” concluded Sur.
Sur ranks No. 39 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 67% of the time, delivering an average return of 26.1%. See Broadcom Statistics on TipRanks.
Zscaler
Next on this week’s list is Zscaler (ZS), a cybersecurity company that recently delivered strong results for the fourth quarter of fiscal 2025, driven by demand for its Zero Trust and AI security solutions.
Impressed by the Q4 FY25 print, Stifel analyst Adam Borg reiterated a buy rating on Zscaler stock and raised the price forecast to $330 from $295. Interestingly, TipRanks’ AI Analyst has a “neutral” stock on ZS stock with a price target of $298.
Borg stated that Zscaler delivered solid results, consistent with Stifel’s positive checks. He added that the company’s Q4 FY25 performance was strong across key metrics, driven by strong execution and demand for the company’s broadening Zero-Trust portfolio. Borg was particularly pleased with robust growth in billings and remaining performance obligations. Notably, RPO growth (31%) accelerated for the fourth consecutive quarter.
The 5-star analyst is optimistic about the adoption of Zscaler’s offerings across emerging areas, like AI security. Borg is also upbeat about the company’s newer solutions like Z-Flex. He continues to believe that “Zscaler’s leading-portfolio helps improve an organization’s security posture, drives vendor consolidation, and reduces costs.”
Bord expects Zscaler to sustain at least high-teens top-line growth and margin expansion in the coming years, driven by multiple drivers.
Borg ranks No. 324 among more than 10,000 analysts tracked by TipRanks. His ratings have been successful 77% of the time, delivering an average return of 16.9%. See Zscaler Ownership Structure on TipRanks.
Oracle
Database software maker and cloud infrastructure company Oracle (ORCL) saw its stock spike this week, as the company’s robust cloud growth projections overshadowed its Q1 earnings miss. The company surprised the market by reporting a 359% year-over-year growth in its remaining performance obligations, a measure of contracted revenue, to $455 billion.
Oracle’s robust outlook made Jefferies analyst Brent Thill increase his price target to $360 from $270 while reiterating a buy rating on the stock. TipRanks’ AI Analyst also has an “outperform” rating on ORCL stock with a price target of $264.
“RPO stole the show in F1Q,” stated Thill. The 5-star analyst added that Oracle’s Q1 RPO crushed estimates and reinforced his confidence in the company’s narrative about acceleration in its growth.
Thill highlighted that Oracle added $317 billion sequentially in RPO, nearly five times the fiscal 2026 total revenue estimate of $67 billion, which supports growing AI optimism. He noted that this massive growth can be mainly attributed to four multi-billion-dollar contracts across three customers, with more such deals expected to close soon and drive RPO beyond $500 billion.
The analyst also pointed out that the Oracle Cloud Infrastructure (OCI) business is expected to grow by 77% to $18 billion in fiscal 2026 and then jump to $144 billion by fiscal 2030. Thill added that this impressive growth forecast indicates the rising demand for AI inference and training workloads, which management sees as a massive total addressable market that the company can capture.
Additionally, Thill mentioned the impressive surge in Oracle’s multicloud database revenue, though off smaller numbers, suggesting rapid adoption of the company’s multicloud strategy. In fact, Oracle now expects notable growth in multicloud revenue every quarter for the next several years while expanding to 71 (net addition of 37) data centers across hyperscaler peers.
Thill ranks No. 128 among more than 10,000 analysts tracked by TipRanks. His ratings have been successful 67% of the time, delivering an average return of 14.9%. See Oracle Insider Trading Activity on TipRanks.
This post was originally published on CNBC Markets
