In the bustling world of technology, Evercore ISI highlights three standout stocks that every savvy investor should consider for their 2025 portfolios. Analyst Amit Daryanani expressed optimism for the information technology hardware and networking sector, pointing to a favorable climate as we head into the new year. This sector is primed to capitalize on the surging wave of artificial intelligence advancements. He noted in a December report that the coming cycle would see enterprise AI gaining more traction, coupled with a broader recovery in IT spending across the tech landscape.
Among these promising investments is a group Evercore dubs the “AAA” stocks—companies investors can add to their portfolios with confidence, assured of their strong performance over time. Apple stands out as the most well-known name in this group. The tech giant is on the brink of reaching an astounding $4 trillion market valuation, having soared over 34% this year alone. Daryanani believes the company’s long-lasting upgrade cycles, along with increasing revenue opportunities from its wearables line and Apple Intelligence, will keep Apple’s stock on an upward trajectory. Although some Wall Street analysts suggest that Apple’s shares might move unpredictably or even dip in the next 12 months, their overall sentiment remains positive.
On the other end of the spectrum, Evercore highlights Amphenol, a somewhat lesser-known entity that flies under most investors’ radar. Amphenol, known for manufacturing connectors and cables for various industries including mobile networks and automobiles, shows a promising upside. Evercore anticipates a 10% or more increase in Amphenol’s earnings per share in the next year, thanks to potential mergers, AI-related opportunities, and an industry-wide cyclical recovery. As noted, Amphenol has the capacity to maintain consistent double-digit revenue growth with minimal volatility. Though it doesn’t have the same universal appeal as Apple, 11 out of 20 analysts have given it a strong buy or buy rating, despite some neutral perspectives. In 2024, Amphenol saw an impressive 44% rise, surpassing even Apple and the Nasdaq Composite.
The crown jewel of the AAA stocks, however, is Arista Networks, which almost doubled its market value in 2024. Evercore predicts continued success for Arista as AI-related enthusiasm carries forward into the new year. Their analysis suggests an acceleration of Ethernet in AI data centers and forecasts the potential for 20% or higher revenue growth for both 2025 and 2026. Like Apple, Arista is met with strong buy ratings from many Wall Street analysts, even though the average price target hints at possible declines in 2025. Nevertheless, Arista remains a frontrunner in the tech sector and a compelling choice for investors on the lookout for robust tech growth.
