2 Top-Ranked AI-Powered Tech Giants to Enhance Your Portfolio Returns

The AI saga, supported by the massive growth of cloud computing and data centers, is yet to fully unfold. This space remains rock solid, supported by an extremely bullish demand scenario. The demand for data center capacity has surged to manage and store the vast amount of cloud computing-based data.

We have narrowed our search to two AI-powered technology behemoths (market capital > $100 billion) to buy at this stage to augment your portfolio returns. These are: Amphenol Corp. APH and Analog Devices Inc. ADI. 

These two stocks have surged in the past year with more upside left, buoyed by the massive AI boom globally. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Amphenol Corp. 

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-powered 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-generation 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. 

Amphenol has an expected revenue and earnings growth rate of 12.4% and 21.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.8% in the last 30 days. APH has a long-term (3-5 years) earnings growth rate of 38.7%, significantly higher than the S&P 500 Index’s growth rate of 15.8%.

Analog Devices Inc.

Analog Devices has demonstrated broad-based recovery, margin resilience and strong free cash flow generation. Secular growth drivers in automation, AI infrastructure, and automotive electrification offer multi-year tailwinds. Strong momentum across the electric vehicle space on the back of its robust Battery Management System solutions remains a catalyst for ADI. 

AI-driven demand for automatic test equipment is fueling a surge in ADI’s signal chain and power content, with memory test system content increasing 300%. With lean channel inventories, strong order momentum and improved bookings, ADI’s industrial business is well-positioned for a sustained upcycle.

Analog Devices is targeting robotics and humanoid markets as a multi-year growth driver for its industrial automation business. We believe that the AI-driven robotics adoption will be a multi-year revenue catalyst for ADI. The company anticipates that revenues from its automation business will double by 2030.

ADI’s advanced analog and mixed-signal technologies enable faster, more efficient data transmission, critical to next-generation AI networks. As global cloud and telecom operators ramp up capacity to support AI workloads, ADI’s deep expertise in high-speed connectivity positions it to capture sustained, high-value growth opportunities in this expanding infrastructure cycle.

Analog Devices has an expected revenue and earnings growth rate of 16.4% and 25.7%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.5% over the last 30 days. ADI has a long-term earnings growth rate of 18.5%, higher than the S&P 500 Index’s growth rate of 15.8%.

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

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