Top Wall Street analysts bet on the potential of these 3 stocks for the long haul

Top Wall Street analysts are bullish on Broadcom (AVGO), Zscaler (ZS), and Oracle (ORCL), citing strong positioning for AI-driven growth. Broadcom's robust Q3 results and guidance, including a new $10 billion AI customer and projected $45 billion AI revenue by FY26, led JPMorgan to raise its price target to $400. Zscaler's strong Q4 FY25 performance, marked by accelerated RPO growth and demand for AI security, prompted Stifel to increase its price target to $330. Meanwhile, Oracle's stock surged despite an earnings miss, driven by a 359% YoY increase in remaining performance obligations to $455 billion and Oracle Cloud Infrastructure (OCI) growth projections to $144 billion by FY30, largely due to AI inference and training workloads, leading Jefferies to raise its price target to $360.

Analysis

Recent earnings reports from key technology firms are substantiating the artificial intelligence investment thesis with tangible growth metrics and robust forward guidance. Broadcom (AVGO) exemplifies this trend, reporting 18% sequential growth in its fiscal Q3 AI revenue and securing a new $10 billion customer, leading to analyst projections of its AI revenue reaching $45 billion by fiscal 2026. This performance, coupled with a stabilizing non-AI semiconductor business, prompted a price target increase to $400 from JPMorgan. Similarly, Oracle (ORCL) overcame a Q1 earnings miss as its stock rallied on the announcement of a 359% year-over-year increase in remaining performance obligations (RPO) to $455 billion, driven by large-scale AI contracts. This massive RPO growth, with Oracle Cloud Infrastructure (OCI) revenue projected to hit $144 billion by fiscal 2030, signals significant future revenue visibility. In the cybersecurity space, Zscaler (ZS) demonstrated strong execution with its RPO growth accelerating to 31% for the fourth consecutive quarter, fueled by demand for its Zero Trust and AI security solutions, leading Stifel to raise its price target to $330. These results collectively indicate a strong, well-funded capital spending cycle in AI, translating analyst optimism into concrete financial forecasts.

Key Decisions for Investors

• Given Broadcom's demonstrated ability to secure massive AI contracts and its projected exponential growth in AI-related revenue, investors should consider its position as a primary beneficiary of the AI infrastructure build-out.
• Investors should look past Oracle's recent earnings miss and focus on the monumental 359% growth in Remaining Performance Obligations, which provides strong visibility into future revenue and validates its competitive positioning in cloud infrastructure for AI workloads.
• While Zscaler's accelerating RPO growth points to strong demand, the presence of a neutral rating from one AI analyst suggests investors should monitor for continued execution and margin expansion to fully validate the bullish case.
• The strong forward-looking metrics from these firms suggest the AI investment cycle is robust; portfolios could be tilted towards companies with demonstrable, large-scale contract wins in semiconductors and cloud infrastructure rather than more speculative AI names.