Long-term investors look beyond geopolitical swings
Ongoing conflict in the Middle East has injected volatility into global markets, but analysts say investors with a long-term perspective should focus on structural growth themes rather than short-term headlines.
Artificial intelligence infrastructure remains one of the strongest multi-year drivers across technology, and several Wall Street analysts are highlighting stocks they believe can outperform as AI spending accelerates.
According to data compiled by TipRanks, which ranks analysts based on historical performance, three companies stand out among top-rated professionals: Lumentum Holdings, Broadcom, and Dell Technologies.
Lumentum: Optical demand tied to AI expansion
Lumentum Holdings (LITE), a provider of optical and photonic technologies, has benefited from rising demand for AI data center networking.
Following an investor briefing at the Optical Fiber Communication Conference, JPMorgan analyst Samik Chatterjee reiterated a buy rating and sharply raised his price target, citing stronger-than-expected clarity on future demand.
Chatterjee highlighted expanding opportunities in scale-up networks, including co-packaged optics and optical circuit switches. He expects earnings per share to reach roughly $24 in 2027, with potential upside above $25, and sees earnings surpassing $36 in 2028 as networking demand scales.
In his view, AI-driven optical investment justifies a higher valuation multiple relative to historical averages.
Broadcom: Multi-year AI accelerator momentum
Broadcom (AVGO) continues to gain traction as hyperscalers expand AI compute infrastructure. The company recently announced a multi-year agreement with Meta Platforms, adding to existing partnerships with Google and Anthropic.
Benchmark analyst Cody Acree reiterated a buy rating with a $485 price target, stating the Meta agreement increases visibility into Broadcom’s ability to exceed its prior goal of generating more than $100 billion in AI chip revenue by fiscal 2027.
Broadcom’s custom AI accelerator programs now span multiple customers and generations of chips, along with advanced packaging and networking components. Acree noted that such integration raises switching costs and strengthens long-term revenue durability.
He also emphasized that hyperscale AI infrastructure is now being built at utility-scale capacity, with gigawatt-level deployments becoming the norm.
Dell: AI server demand and market share gains
Dell Technologies (DELL) is emerging as a key beneficiary of surging AI server demand. Mizuho analyst Vijay Rakesh recently lifted his price target to $215 while maintaining a buy rating.
Rakesh expects Dell to capture incremental share in the AI server market, potentially rising from 19% in 2025 to 25% by 2029. He projects fiscal 2027 and 2028 server orders of $53 billion and $68 billion, respectively.
Strong relationships with cloud service providers and large AI infrastructure customers support that outlook. Industry capital expenditures are forecast to approach $689 billion in 2026, with continued growth in subsequent years.
Rakesh attributes Dell’s positioning to scale advantages, supply chain strength, and financial flexibility.
AI remains a structural theme
While geopolitical tensions may drive near-term volatility, analysts argue that AI infrastructure spending continues to expand at a pace that could outweigh short-term macro disruptions. For long-term investors, companies tied to networking, custom silicon, and server capacity remain central to the thesis.
