Evercore ISI names top five technology choices for 2025 | Wilnesh News
Evercore ISI has listed its favorite tech stocks heading into 2025. The company has been at the forefront of a stock market rally since the debut of its artificial intelligence chatbot ChatGPT at the end of the year. Recently, however, the IT industry has come under pressure, with questions over whether technology companies will continue to achieve the growth required for their lofty valuations. Against this backdrop, Evercore ISI analysts recently picked five tech stocks they are most confident of entering next year. Here are the investment bank’s stock picks, along with what to expect next. Arista Networks, the cloud networking equipment company, gave conservative revenue guidance for 2025, leaving room for upside potential, according to Evercore ISI. “We believe ANET is uniquely positioned to accelerate revenue growth in 2025 and beyond, driven by multiple levers,” a group of analysts wrote in a note on Wednesday. According to their forecast, Arista Networks Revenue will grow by more than 20% in 2025 and 2026. Analysts said the company’s back-end artificial intelligence products are another potential driver of revenue growth. “We continue to believe Arista is the leader in artificial intelligence Ethernet switching and customer adoption will accelerate in 2025,” the report continued. Evercore ISI raised its 12-month price target on Arista to $450 from $425, which represents a more than 20% upside from Friday’s closing price. The stock has surged 59% so far this year. According to Evercore ISI, artificial intelligence will power Apple’s long-term growth story. Although sales of the new iPhone released in September did not trigger an upgrade super cycle, the investment bank believes that iPhone growth will eventually improve as more AI features are added. “While this may disappoint those hoping for strong iPhone 16 sales, we think it’s worth noting that Apple’s AI strategy isn’t just about selling more iPhones,” the analysts said. “Apple will continue to serve as its 1.5 B+ (users) are the gatekeepers to the installed base and have the option to monetize 3rd party AI results. This will allow them to reap the rewards of AI without the huge uptick in capital expenditures we see in their larger enterprises. In addition to more artificial intelligence capabilities, Apple’s services and wearable devices are also expected to grow next year. Evercore ISI’s target price is unchanged at $250, which means that the stock will rise 11.1% from Friday’s closing price. It’s set to rise 17% in 2024, lagging the S&P 500’s 23% gain, according to analysts at Evercore ISI. Amphenol, the fiber-optic connector maker, is also seeing double-digit revenue growth and lower volatility. Amphenol, which makes electronic connectors and cables and sells them to a variety of markets, including defense, technology and broadband companies, is also expected to benefit as some of its customers, including industrial and mobile networking groups, recover. The Wallingford, Dick, company also has a strong track record on acquisitions and a strong balance sheet, ensuring it can continue to do deals — which Evercore ISI estimates could add $15 to its annual earnings per share. to 20 cents. The stock closed at $70.52 on Friday: “We believe APH is well-positioned to deliver highly sophisticated/efficient connectors to AI servers and networks. Benefit from the development of artificial intelligence. “Additionally, APH’s deep understanding of a range of technologies and strong partnerships enable them to respond nimbly and seize short- and long-term AI opportunities,” the report states. Evercore ISI raised its price target on the $90 billion stock by $5 to $80 a share, more than 13% above Friday’s closing price. IBM International Business Machines Corp.’s 2025 Revenues, Evercore ISI Says May beat expectations. IBM’s software division hit double-digit growth in the third quarter and is likely to continue growing due to high demand for artificial intelligence and data solutions. IBM now has bookings worth $3 billion, Evercore ISI said. IBM’s artificial intelligence business, which could also increase demand for its software products, may also benefit from President-elect Trump’s push for deregulation during his second term, Evercore ISI wrote: “A more favorable regulatory environment for mergers and acquisitions. Accelerate transaction activity. “IBM in particular is well positioned for larger deals given its balance sheet” and free cash flow generation. Evercore ISI said Vertiv Holdings is a long-term beneficiary of the artificial intelligence boom. The Waterville, Ohio-based company has 27,000 employees and provides digital infrastructure technology for data centers. The company’s shares more than doubled in 2024, surging 152% as the data center boom drove demand for Vertiv’s liquid cooling technology. Evercore’s report states: “We believe the company is well-positioned to not only capture the long-term tailwinds of artificial intelligence infrastructure, but also to gain share in the expanding market and, more importantly, with increasingly profitable Analysts believe that with scale and business process optimization, Vertiv’s EBIT margins may reach a level of around 20%. The bank raised the target price to $150 from $135. That means Vertiv shares could rise 24% next year from Friday’s closing price. —CNBC’s Michael Bloom contributed to this report.
