Buy 3 AI-Led Stocks Amid Solid Estimate Revisions and Upside Potential
The artificial intelligence (AI) trade remains bullish even though the Fed has begun a higher interest rate regime to counter sticky inflation. The inflationary situation has worsened due to higher crude oil prices as a result of prolonged geopolitical conflicts in the Middle East.
Here, we have narrowed our search to three AI-powered technology bigwigs with a favorable Zacks Rank that have seen solid earnings estimate revisions in the last 30 days. These companies reported their last earnings results nearly two months ago.
A solid estimate revision in the last 30 days indicates that market participants are expecting these companies to do good business in the near future. Moreover, the stock prices of these companies have strong price upside potential in the short-term.
These companies are: Quanta Services Inc. PWR, Keysight Technologies Inc. KEYS and Amphenol Corp. APH. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Quanta Services Inc.
Zacks Rank #1 Quanta Services is well-positioned to capitalize on robust infrastructure spending across utility, power generation, technology and load center markets. The ongoing expansion of AI data centers, grid modernization, renewable generation and advanced manufacturing is driving customers to undertake larger, multiyear infrastructure programs.
Surging AI-related power demand and expanding utility investments are driving data center project opportunities, making data centers a central pillar of PWR’s long-term growth strategy. The company is heavily investing in deepening its vertical supply chain to offset the ongoing global uncertainties and rising inflation.
Favorable trends in AI data centers helped drive total backlog to a record $53.4 billion as of June 30, 2026, up 49% year over year from $35.8 billion in June 2025. The increase was broad-based, with Electric Infrastructure Solutions backlog rising year over year to $43.8 billion from $30.3 billion, while Underground and Infrastructure Solutions backlog climbed to $9.7 billion from $5.6 billion.
Solid Estimate Revisions
Quanta Services has an expected revenue and earnings growth rate of 38.4% and 55%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.4% over the last 30 days.
PWR has an expected revenue and earnings growth rate of 14.8% and 16.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.9% over the last 30 days.
Image Source: Zacks Investment Research
Strong Short-Term Price Upside
The short-term average price target of brokerage firms represents an increase of 25.3% from the last closing price of $643.50. The brokerage target price is currently in the range of $690-$976. This indicates a maximum upside of 51.7% and no downside.
Keysight Technologies Inc.
Zacks Rank #2 Keysight Technologies is strengthening its growth prospects as investments in AI infrastructure, advanced semiconductors, next-generation wireless technologies and defense modernization drive demand for its design, emulation and test solutions.
Electronic content in AI data centers, networking and advanced semiconductors continues to increase demand for validation tools. In the third quarter of fiscal 2026, KEYS’ orders rose 56% year over year to $2.091 billion.
KEYS is benefiting from customer investment in advanced nodes, high-bandwidth memory and silicon photonics while expanding software and services. Semiconductor has benefited as capacity expanded across advanced nodes, memory and optical interconnects.
Solid Estimate Revisions
Keysight Technologies has an expected revenue and earnings growth rate of 32.2% and 59.9%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 2.7% over the last 30 days.
KEYS has an expected revenue and earnings growth rate of 16.2% and 22.9%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 3.9% over the last 30 days.
Image Source: Zacks Investment Research
Strong Short-Term Price Upside
The short-term average price target of brokerage firms represents an increase of 17.7% from the last closing price of $357.54. The brokerage target price is currently in the range of $400-$452. This indicates a maximum upside of 26.4% and no downside.
Amphenol Corp.
Zacks Rank #2 Amphenol is benefiting from sustained demand for high-speed, power and fiber interconnect products, led by AI-related IT datacom programs and supported by defense, commercial air and diversified industrial applications.
APH’s mix across end markets and applications continues to reduce reliance on any single cycle. Second-quarter 2026 orders reached a record $10.7 billion, producing a 1.23 book-to-bill, with every end market above one.
APH’s high-speed copper, fiber optic and power portfolio spans multiple AI data-center architectures. In second-quarter 2026, IT datacom represented 43% of sales and grew 63% organically year over year, while sequential sales rose 22% largely on AI demand.
APH expects a mid-teens sequential increase in third-quarter 2026 and said in September that IT datacom is about four times its size two years ago. Customer roadmaps require rising interconnect content, while long-term non-cancelable orders help share capacity risk.
Solid Estimate Revisions
Amphenol has an expected revenue and earnings growth rate of 53.5% and 59.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.1% over the last 30 days.
APH has an expected revenue and earnings growth rate of 17.7% and 23%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 2.8% over the last 30 days.
Image Source: Zacks Investment Research
Strong Short-Term Price Upside
The short-term average price target of brokerage firms represents an increase of 21.4% from the last closing price of $83.08. The brokerage target price is currently in the range of $90-$115. This indicates a maximum upside of 31.9% and no downside.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpQuanta Services, Inc. (PWR) : Free Stock Analysis Report
Amphenol Corporation (APH) : Free Stock Analysis Report
Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
