The conflict in the Middle East has thrown the market into turmoil, but investors with a long-term horizon should look past short-term disruptions to find attractive stocks.
Choosing the right stocks can be challenging due to the vast universe of stocks available. Investors can consider the ratings of top Wall Street analysts when making informed decisions about their portfolios.
Here are three stocks favored by some of Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
Lumentum holdings
This week’s first choice is Lumentum holdings (LITE), which provides optical and photonic technologies for data centers with next-generation artificial intelligence and communications. LITE stock has seen a phenomenal rise over the past year, driven by AI-driven demand for the company’s optical networks and related components.
Following the investor briefing at the Optical Fiber Communication (OFC) conference and related meetings, JPMorgan analyst Samik Chatterjee reiterated his Buy rating on Lumentum shares and increased the price target from $565 to $950. The analyst said the event and meetings provided greater than expected clarity on future demand across various growth drivers.
Chatterjee sees increased confidence on multiple fronts, with the company highlighting new deals and capacity expansions, bolstering belief in the improving financial outlook. In particular, the analyst noted greater visibility of the impressive expansion of optics capabilities in scale-up networks, including significant growth drivers in Co-Packaged Optics (CPO) and Optical Circuit Switches (OCS).
The five-star analyst added that growing demand for scale-up networks provides confidence in continued strength in future earnings and encourages investors to look beyond 2027 and consider these opportunities. Overall, Chatterjee expects earnings per share (EPS) of $24 for 2027, with upside potential of over $25. Looking forward, he expects strong network expansion to push profits to over $36 in 2028, with the potential for further upside from more OCS customers, higher margins and controlled costs.
Additionally, Chatterjee believes his increased price target and higher-than-historical multiple are “justified given the benefits of demand relative to AI investments.”
Chatterjee is ranked No. 8 among more than 12,100 analysts tracked by TipRanks. Its valuations were profitable 71% of the time and delivered an average return of 44.8%. See Lumentum Holdings financial data on TipRanks.
Broadcom
We continue with the chip manufacturer Broadcom (AVGO), which benefits from AI-driven demand for its products. The company announced a multi-year deal with last week Metaplatforms to support the social media giant’s rapidly growing AI computing infrastructure. Previously, Broadcom entered into expanded partnerships with Google and Anthropic.
After the meta deal, benchmark analyst Cody Acree reiterated his Buy rating on Broadcom shares with a price target of $485. Acree said the meta deal significantly increased his confidence in AVGO’s ability to exceed its previous goal of achieving more than $100 billion in AI chip sales in fiscal 2027, as it provides a clearer timeline and deployment visibility for one of the company’s largest custom AI accelerator (XPU) programs.
The five-star analyst noted that the increasing conviction is based on management’s previous commentary on AVGO’s custom XPU business, which now includes six customers, with further upside expected from Google’s next-generation Tensor Processing Units (TPUs) and Meta’s Meta Training and Inference Accelerator (MTIA) roadmap. Additionally, AVGO’s XPU business is expected to benefit from Anthropic’s scaling from 1 GW this year to over 3 GW in 2027 and OpenAI’s deployment of its first-generation XPU in 2027 with more than 1 GW of compute capacity.
Interestingly, Acree believes that the meta-partnership agreement is not just limited to a typical ASIC design win. Broadcom is now involved in multiple generations of AI accelerator chip designs, advanced packaging and networking, which is expected to increase content per deployment while making it harder for Meta to switch providers.
Additionally, Acree noted that the deal includes an initial commitment of 1 GW+, with plans to scale to multi-gigawatt deployments over time. This shows that hyperscale AI infrastructure is now being built at utility scale, which bodes well for companies like Broadcom that offer both custom chips and rack-scale networking solutions.
Acree is ranked #71 among more than 12,100 analysts tracked by TipRanks. Its valuations were profitable 68% of the time and delivered an average return of 29%. See Broadcom insider trading activity on TipRanks.
Dell Technologies
Dell Technologies (DELL) also benefits from the demand for AI infrastructure. In particular, the ongoing AI boom is increasing demand for the company’s servers. Recently, Mizuho analyst Vijay Rakesh increased his price target on Dell shares from $180 to $215 and reiterated a Buy rating.
While Rakesh acknowledges this Super microcomputer (SMCI) is a leader in AI server technology. He expects Dell to benefit from some deferral of orders from SMCI as its former employees face charges of illegal shipments Nvidia-operated servers to China. Super Micro was not named as a defendant in the case. The five-star analyst expects these near-term headwinds related to rival SMCI to benefit Dell, which has a ten times larger AI server service and support team and a solid balance sheet to support its estimated $85 billion five-quarter pipeline.
Rakesh now expects Dell’s server orders for fiscal 2027 and 2028 to be $53 billion and $68 billion, respectively, up from previous estimates of $50 billion and $61 billion, respectively. Its revised estimates suggest Dell could benefit from a shift in demand/sentiment in the AI server landscape.
Additionally, Rakesh expects Dell to benefit from increased spending by major cloud service providers (CSPs). CoreWeave. Notably, capital spending for 2026 is now estimated at $689 billion, up 64% year-on-year, with capital spending forecast to increase by 18% and 10%, respectively, to $888 billion in 2027 and 2028.
The analyst also expects Dell’s share of the AI server market to increase from 19% in 2025 to 25% in 2029. Rakesh expects the company’s market share to be determined by its “size, balance sheet and well-developed supply chain.”
Rakesh is ranked #14 among more than 12,100 analysts tracked by TipRanks. Its valuations were profitable 67% of the time and delivered an average return of 51.1%. See Dell Technologies ownership structure on TipRanks.