Wall Street has maintained its northward journey after an impressive bull run over the past two and a half years. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — are currently trading around their all-time high levels.
The technology sector, driven by the astonishing adoption of generative artificial intelligence (AI) across the world, was the primary driver of this rally. The sector suffered some hurdles in the first half of 2025 but regained strong momentum in the past two months.
We have selected three technology bigwigs that witnessed solid earnings estimate revisions in the last 30 days. This indicates that market participants are expecting these companies to do good business in the near future.
Each of our picks currently sports a Zacks Rank #1 (Strong Buy), reflecting strong price upside potential in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here. These stocks are: Amphenol Corp. APH and AppLovin Corp. APP.
The chart below shows the price performance of our two picks year to date.
Image Source: Zacks Investment Research
Amphenol provides connectivity solutions using AI and ML (machine learning) technologies. It provides AI-powered high-density, high-speed connectors and cables, and interconnect systems optimized for signal integrity and thermal performance.
APH benefits from a diversified business model. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. The company is a dominant force in AI/data center interconnects, commanding an estimated 33% market share. APH’s advanced fiber-optic and high-density interconnect solutions are now essential for hyperscale data centers and 5G deployments.
Expanding spending on both current and next-generation defense technologies bodes well for APH’s top-line growth. Apart from Defense, Amphenol’s prospects ride on strong demand for its solutions across Commercial Air, Industrial, and IT Datacom. Solid demand for high-speed and power interconnect products, which are critical components in next-gen IT systems, creates a long-term growth opportunity.
Rising AI workloads and cloud infrastructure upgrades are fueling demand for high-speed interconnects. This momentum is expected to support the Communications Solutions segment. Electrification in transportation and increasing electronic content in medical devices are driving the adoption of APH’s cable assemblies and sensor-based systems. These drivers are expected to support steady growth in the Interconnect and Sensor Systems segment.
