Four Tech Giants Positioned for Strong Growth in 2026: What CRM Analysts Are Recommending

The AI-Powered Tech Rally Continues: Here’s What’s Next

The technology sector has been nothing short of spectacular in 2025. The Computer and Technology group surged 27.8% this year, crushing the S&P 500’s more modest 20% gain. The Nasdaq Composite, where tech stocks dominate with over 50% of the index, climbed 21% year-to-date. Yet despite this phenomenal run, several mega-cap tech names remain surprisingly undervalued on traditional metrics—particularly those positioned at the intersection of artificial intelligence and infrastructure buildout.

Why AI Infrastructure Is the Real Growth Engine

Artificial intelligence has transitioned from boardroom buzzword to business necessity. Across manufacturing, telecommunications, e-commerce, healthcare, automotive, finance, and retail, enterprises are aggressively increasing their AI spending. The tangible use cases are compelling: supply chain optimization, warehouse automation, network management, content recommendation engines, and real-time customer service enhancement.

The data tells the story. The AI data center market is projected to balloon from $13.62 billion in 2025 to $60.49 billion by 2030—a stunning compound annual growth rate of 28.3%. This explosive expansion requires massive semiconductor and memory capacity upgrades, creating a tailwind for equipment manufacturers and chip suppliers alike.

The Semiconductor Shift: Training to Inference

A critical evolution is reshaping the semiconductor landscape. The industry focus is transitioning from training massive AI models to deployment-phase inference workloads—actually running AI models in real time across diverse applications. Companies that can adapt their product strategies to this shift will capture outsized market share.

Four Stock Picks for the AI Era

Micron Technology (MU): The Memory Play

Boise, Idaho-based Micron Technology has emerged as a leading semiconductor memory provider with strategic positioning in the booming AI infrastructure market. The company has locked in long-term supply agreements with major GPU manufacturers including NVIDIA, AMD, and Intel, securing its place in next-generation data center builds. Its HBM3E memory portfolio is attracting strong customer interest, with substantial revenue upside expected in coming quarters.

Valuation-wise, Micron trades at a forward P/E of 12.17, notably cheaper than the Computer - Integrated Systems group average of 17.23. The stock has surged 240.6% over the past year and carries a Zacks Rank of 1 (Strong Buy). Earnings estimates for 2026 have improved 113.14% over the past two months alone, with long-term earnings growth expectations of 52.06%.

Applied Materials (AMAT): The Equipment Enabler

Santa Clara-based Applied Materials stands as one of the world’s premier suppliers of semiconductor manufacturing equipment, LCD displays, and photovoltaic cells. The company sits at the epicenter of AI-driven semiconductor innovation and is well-positioned to benefit from expanding ICAPS (IoT, Communications, Automotive, Power and Sensors) demand.

Data center buildout remains a major growth catalyst, driven by cloud providers’ insatiable appetite for Dynamic Random Access Memory. AMAT trades at 26.56x forward earnings versus 34.54x for its peer group, suggesting relative value. The stock gained 56.3% over the past year and carries a Zacks Rank of 3 (Hold). Earnings estimates for 2026 improved 6.42% in recent weeks.

Salesforce (CRM): The Enterprise Software Edge

San Francisco-headquartered Salesforce remains the dominant platform for enterprise Customer Relationship Management software. CRM analysts increasingly recognize the company’s steadily expanding generative AI capabilities as a key competitive moat. The recent acquisition of Informatica strengthened Salesforce’s cloud data management offerings, creating a more integrated solution set for enterprise customers managing complex business operations.

Salesforce trades at a forward price-to-sales ratio of 5.47 compared to 7.58 for the Computer - Software group average. Despite a 21.3% decline over the past year, the company shows long-term earnings growth expectations of 15.04%. Earnings estimates for 2026 have improved 2.22% recently.

Cisco Systems (CSCO): The Network Security Bet

San Jose-headquartered Cisco is rapidly expanding its footprint in network security while rolling out AI-powered data center solutions. New offerings like the Unified Nexus Dashboard, Intelligent Packet Flow technology, configurable AI PODs, and 400G bidirectional optics are expected to gain significant market adoption in the quarters ahead.

Cisco trades at 18.48x forward earnings versus 22.87x for the Computer - Networking group, suggesting valuation support. The stock increased 30% over the past year with a Zacks Rank of 3 (Hold). Long-term earnings growth expectations stand at 8.02%.

The Bottom Line

The convergence of AI proliferation, data center expansion, and semiconductor demand creates a rare confluence of tailwinds for these four technology leaders. While valuations have already moved higher, several of these names still offer attractive entry points for investors seeking exposure to the infrastructure buildout phase of the AI revolution.