Top analysts are bullish on these 3 stocks for the long haul

Conflicts in the Middle East have sent the market on a wild ride, but investors with a long-term horizon need to put short-term disruptions aside to find intriguing stocks.

Choosing the right stocks can be difficult due to the wide range of stocks available. Investors can consider ratings from top Wall Street analysts when making informed decisions about their portfolios.

Here are three stocks favored by some of Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

Lumentum Holdings

This week’s first pick Lumentum Holdings (LIGHTProviding optical and photonic technologies to power AI data centers and next-generation communications. LITE shares have surged tremendously over the past year, driven by AI-led demand for the company’s optical networking and related components.

Following the investor briefing at the Optical Fiber Communications (OFC) Conference and related meetings, JPMorgan analyst Samik Chatterjee reiterated his buy rating on Lumentum shares. price target $950 It starts at $565. The analyst said the event and meetings provided stronger than expected clarity on future demand across various growth drivers.

Chatterjee sees confidence improving on many fronts, with the company emphasizing new deals and capacity expansions and strengthening belief in an improving financial outlook. In particular, the analyst noted greater visibility into the impressive expansion of the optics opportunity in scale-up networks, including significant growth drivers in co-packaged optics (CPO) and optical circuit switches (OCS).

The five-star analyst added that rising demand for networking gives confidence that there will be continued strength in future earnings, encouraging investors to look beyond 2027 and seize these opportunities. Overall, Chatterjee expects earnings per share (EPS) to be $24 in 2027, with growth above $25. Looking ahead, he expects strength in the scale-up network to drive earnings above $36 in 2028, with further upside potential from more OCS customers, higher margins and controlled costs.

Additionally, Chatterjee thinks the elevated price target and multiple above the historical average are “justified given the benefits driven by demand vis-à-vis AI investments.”

Chatterjee is ranked No. 8 out of more than 12,100 analysts tracked by TipRanks. Their ratings were profitable 71% of the time, with an average return of 44.8%. See Lumentum Holdings Financials on TipRanks.

broadcom

Moving on to Chipmaker broadcom (AVGO) is profiting from AI-led demand for its products. The company announced a multi-year deal last week. Meta Platforms supporting the social media giant’s rapidly growing AI computing infrastructure. Before that Broadcom extended partnerships With Google and Antropik.

Following the commodity deal, Benchmark analyst Cody Acree reiterated his buy rating on Broadcom shares. price target $485. Acree noted that the Meta deal significantly increases AVGO’s confidence in its ability to exceed its previous goal of delivering more than $100 billion in AI chip revenue in fiscal 2027, as it provides a clearer timeline and deployment visibility into one of the company’s largest proprietary XPU (AI accelerators) programs.

The five-star analyst noted that the increased sentiment is based on management’s previous comments about AVGO’s custom XPU business, which currently spans six customers, and expects further upside from Google’s next-generation TPUs (tensor processing units) and Meta’s MTIA (Meta Training and Inference Accelerator) roadmap. Additionally, AVGO’s XPU business is expected to gain from Anthropic scaling from 1 GW this year to over 3 GW in 2027 and OpenAI’s deployment of the first generation XPU with over 1 GW of compute capacity in 2027.

Interestingly, Acree believes that the Meta partnership deal is not just a typical ASIC design victory. Broadcom is now involved in multi-generational AI accelerator chip design, advanced packaging and networking; This is expected to further increase content per distribution and make it harder for Meta to switch suppliers.

Additionally, Acree observed that the deal includes an initial commitment of 1 GW+ with plans to scale to multi-gigawatt deployment over time. This suggests that hyperscale AI infrastructure is now being built at utility scale; This bodes well for companies like Broadcom, which offer both custom chips and rack-scale networking solutions.

Acree is ranked #71 out of more than 12,100 analysts followed by TipRanks. Their ratings were profitable 68% of the time, with an average return of 29%. Check out Broadcom Insider Trading Activity on TipRanks.

Dell Technologies

Dell Technologies (DELL) is also benefiting from the demand for AI infrastructure. In particular, the ongoing artificial intelligence boom is increasing demand for the company’s servers. Recently, Mizuho analyst Vijay Rakesh said, The price target for Dell shares is $215. Reaffirmed buy rating at $180.

While Rakesh accepts this Super Micro Computer (SMCI) is a leader in AI server technology; He expects Dell to profit from some shifting of orders from SMCI at a time when former employees are accused of illegally shipping servers. Nvidia-We sent hardened servers to China. Super Micro was not named as a defendant in the lawsuit. The five-star analyst expects short-term headwinds from rival SMCI to benefit Dell, which has a 10 times larger AI server service and support team and a solid balance sheet to support an estimated $85 billion five-quarter sales pipeline.

Rakesh expects Dell’s fiscal 2027 and 2028 server orders to be $53 billion and $68 billion, respectively, up from previous estimates of $50 billion and $61 billion, respectively. Their revised forecasts suggest Dell could profit from the demand/sentiment shift in the AI ​​server landscape.

Additionally, Rakesh expects Dell to gain from higher spending by major cloud service providers (CSPs) and CoreWeave. In particular, investment expenditures are estimated to be $689 billion for 2026; This reflects 64% growth compared to the previous year; Investment expenditures for 2027 and 2028 are expected to increase by 18% and 10%, respectively, reaching 888 billion dollars.

The analyst also expects Dell’s share of the AI ​​server market to grow from 19% in 2025 to 25% in 2029. Rakesh expects the company’s market share to be driven by its “scale, balance sheet and advanced supply chain.”

Rakesh is ranked 14th out of more than 12,100 analysts followed by TipRanks. Their ratings were profitable 67% of the time, generating an average return of 51.1%. See Dell Technologies Ownership Structure on TipRanks.