Buy 5 Mid-Cap AI-Infrastructure Developers Post Fed Interest Rate Cut

On Sept. 17, the Fed in its FOMC meeting decided on a much-hyped 25-basis-point cut in the benchmark lending rate to reduce it to the range of 4-4.25%. This is the first interest rate cut of this year. 

The decision was almost unilateral as 11 out of 12 Fed voting members favored a cut of a quarter percentage basis point in the Fed fund rate, while just a lone member dissented with a half a percentage point cut. However, the Fed’s dot-plot has shown two more rate cuts of 25 basis points each this year and one rate cut of 25 basis points in both 2026 and 2027. 

A low-interest-rate regime will be beneficial for high-growth sectors such as technology, consumer discretionary and cryptocurrency. At this stage, we recommend five mid-cap artificial intelligence (AI) infrastructure stocks for investment. 

These companies are: UiPath Inc. PATH, Qualys Inc. QLYS, Calix Inc. CALX, TaskUs Inc. TASK and InterDigital Inc. IDCC. Each of our picks carries either a Zacks Rank #1 (Strong Buy) to 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AI Space Flourishing

The momentum of the AI infrastructure segment is in top gear this year. The AI space remains rock solid, supported by an extremely bullish demand scenario. This huge spending on AI infrastructure will dramatically change the world over the next five years in fields such as hyperscale automation, robotics, healthcare, energy, materials, financials and cybersecurity. 

The chart below shows the price performance of our five picks in the past month.

UiPath Inc.

Zacks Rank #1 UiPath provides an end-to-end automation platform that offers a range of robotic process automation solutions primarily in the United States and internationally. PATH offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. 

The PATH platform's embedded AI, ML (machine language), and NLP (Natural Language Processing) capabilities improve decisioning and information processing. PATH introduced new generative AI features, including specialized LLMs (Large Language Model) such as DocPATH and CommPATH, and Context Grounding, to enhance automated AI models for specific business needs.

UiPath has an expected revenue and earnings growth rate of 10.1% and 20.8%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 14.3% over the last 30 days.

Qualys Inc.

Zacks Rank #1 Qualys is benefiting from the increasing demand for cloud-based cybersecurity solutions amid growing cyber threats and digital transformation initiatives. With a diverse customer base that includes enterprises, SMBs and government entities, QLYS maintains a balanced customer mix, which keeps it resilient against fluctuations in IT spending. 

Two major AI-powered solutions from QLYS include TotalAppSec, a unified application risk management platform for web applications and APIs, and TotalAI, focusing on AI and LLM workloads. 

Qualys' strategic acquisitions are pivotal in driving its growth trajectory. Since its inception, the company has acquired seven companies, of which Blue Hexagon was acquired in November 2022. Blue Hexagon's AI/ML capabilities enhanced QLYS’ threat detection and response solutions, bolstering its cybersecurity offerings.

Qualys has expected revenue and earnings growth rates of 8.1% and 4.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the last seven days. 

Calix Inc.

Zacks Rank #2 Calix provides the cloud, software platforms, systems and services required for communications service providers to simplify their business, excite their subscribers and grow their value. CALX operates in the United States and internationally. CALX offers its Cloud platform services through Calix Engagement Cloud, Calix Operations Cloud, and Calix Service Cloud. 

CALX has integrated AI into its cloud platform and products to enhance broadband experience providers' operations, subscriber engagement, and service delivery. CALX offers AI-powered marketing solutions for the health and finance industries, AI-powered chatbots, and AI-driven initiatives like Calix AI Agents.

Calix has an expected revenue and earnings growth rate of 15.3% and more than 100%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 25.6% over the last 60 days.

TaskUs Inc.

Zacks Rank #1 TaskUs is a provider of outsourced digital services. TASK serves social media, e-commerce, gaming, streaming media, food delivery, and ridesharing, HiTech, FinTech and HealthTech sectors. TASK operates principally in the United States, the Philippines, India, Mexico, Taiwan, Greece, Ireland and Colombia.

TaskUs Accelerates Agentic AI Services. In May 2025, TASK announced a strategic partnership with AI-driven customer support companies Decagon and Regal. The partnerships augment TASK’s agentic AI consulting practice, a set of business services and expertise that help companies seamlessly integrate advanced AI technologies into their customer experience operations.

To that point, agentic AI can accomplish complex tasks autonomously with minimal human interaction, unlike traditional AI models, as it builds on the rapid progress of generative AI by exhibiting goal-driven behavior, adaptability, and reasoning to solve problems dynamically.

TaskUs has an expected revenue and earnings growth rate of 17.8% and 16.3%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 4.2% over the last 30 days.

InterDigital Inc.

Zacks Rank #1 InterDigital is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. IDCC aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas by leveraging its research and development capabilities, technological know-how and rich industry experience.

IDCC’s AI-powered Receiver Design for Future Wireless Communications was validated by Keysight Technology. The state-of-the-art innovation also optimizes throughput performance, reduces communication overhead and simplifies receiver architecture, making it suitable for 6G applications.

Apart from IDCC’s strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, considering the massive size of the market it licenses. IDCC’s Focus on advanced 5G and 6G research is a positive.

InterDigital has an expected revenue and earnings growth rate of -6.7% and -6.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.9% over the last 30 days.

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This article originally published on Zacks Investment Research (zacks.com).

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