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2 Must-Buy AI-Focused Tech Giants With Solid Earnings Estimate Revision
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Key Takeaways
Amphenol sees rising demand for AI-powered interconnects across data centers, defense, and 5G.
Expanding spending on both current and next-generation defense technologies bodes well for Amphenol.
AppLovin's Axon 2.0 AI engine quadrupled ad spend, fueling growth and lifting earnings estimates sharply.
Wall Street has maintained its northward journey after an impressive bull run over the past two and a half years. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — are currently trading around their all-time high levels.
The technology sector, driven by the astonishing adoption of generative artificial intelligence (AI) across the world, was the primary driver of this rally. The sector suffered some hurdles in the first half of 2025 but regained strong momentum in the past two months.
We have selected three technology bigwigs that witnessed solid earnings estimate revisions in the last 30 days. This indicates that market participants are expecting these companies to do good business in the near future.
The chart below shows the price performance of our two picks year to date.
Image Source: Zacks Investment Research
Amphenol Corp.
Amphenol provides connectivity solutions using AI and ML (machine learning) technologies. It provides AI-powered high-density, high-speed connectors and cables, and interconnect systems optimized for signal integrity and thermal performance.
APH benefits from a diversified business model. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. The company is a dominant force in AI/data center interconnects, commanding an estimated 33% market share. APH’s advanced fiber-optic and high-density interconnect solutions are now essential for hyperscale data centers and 5G deployments.
Expanding spending on both current and next-generation defense technologies bodes well for APH’s top-line growth. Apart from Defense, Amphenol’s prospects ride on strong demand for its solutions across Commercial Air, Industrial, and IT Datacom. Solid demand for high-speed and power interconnect products, which are critical components in next-gen IT systems, creates a long-term growth opportunity.
Rising AI workloads and cloud infrastructure upgrades are fueling demand for high-speed interconnects. This momentum is expected to support the Communications Solutions segment. Electrification in transportation and increasing electronic content in medical devices are driving the adoption of APH’s cable assemblies and sensor-based systems. These drivers are expected to support steady growth in the Interconnect and Sensor Systems segment.
Impressive Estimate Revisions
For 2025, the Zacks Consensus Estimate currently shows revenues of $21.54 billion, suggesting an improvement of 41.5% year over year and earnings per share of $3.02, indicating an increase of 59.8% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 30 days.
For 2026, the Zacks Consensus Estimate currently shows revenues of $23.49 billion, suggesting an improvement of 9% year over year and earnings per share of $3.38, indicating an increase of 11.7% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 30 days.
Image Source: Zacks Investment Research
AppLovin Corp.
AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. As a leading ad-tech company, APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
AppLovin has solidified its leadership in mobile advertising, powered by its next-gen AI engine, Axon 2.0. Since its debut, Axon 2.0 has radically enhanced APP’s ad performance, helping to quadruple advertising spend on its platform. This explosive growth has led to an estimated $10 billion annual run rate in ad spend from gaming clients, pushing APP into the upper echelon of global ad tech firms by valuation.
Axon 2.0’s importance goes far beyond mere optimization. In a post-Identifier for Advertisers environment that disrupted mobile user acquisition strategies, Axon 2.0 served as a critical catalyst for recovery.
APP’s AI-enabled Audience+ marketing platform is also increasing its reach into the direct-to-consumer and e-commerce space. Moreover, APP’s MAX publisher base is expanding at a significantly faster rate, underscoring Axon 2.0’s strategic advantage.
AppLovin’s leadership is aggressively expanding, planning a self-serve referral platform launch in October 2025 and aiming for a full global rollout of its Axon advertising platform in 2026. APP targets a 20-30% year-over-year growth rate fueled mainly by its gaming segment and AI-driven ad monetization.
Excellent Estimate Revisions
For 2025, the Zacks Consensus Estimate currently shows revenues of $5.5 billion, suggesting an improvement of 16.7% year over year and earnings per share of $8.95, indicating an increase of 97.6% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the last 30 days.
For 2026, the Zacks Consensus Estimate currently shows revenues of $6.9 billion, suggesting an improvement of 26.2% year over year and earnings per share of $13.50, indicating an increase of 50.9% year over year. The Zacks Consensus Estimate for current-year earnings has improved 11.3% over the last 30 days.
Image Source: Zacks Investment Research
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2 Must-Buy AI-Focused Tech Giants With Solid Earnings Estimate Revision
Key Takeaways
Wall Street has maintained its northward journey after an impressive bull run over the past two and a half years. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — are currently trading around their all-time high levels.
The technology sector, driven by the astonishing adoption of generative artificial intelligence (AI) across the world, was the primary driver of this rally. The sector suffered some hurdles in the first half of 2025 but regained strong momentum in the past two months.
We have selected three technology bigwigs that witnessed solid earnings estimate revisions in the last 30 days. This indicates that market participants are expecting these companies to do good business in the near future.
Each of our picks currently sports a Zacks Rank #1 (Strong Buy), reflecting strong price upside potential in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here. These stocks are: Amphenol Corp. (APH - Free Report) and AppLovin Corp. (APP - Free Report) .
The chart below shows the price performance of our two picks year to date.
Image Source: Zacks Investment Research
Amphenol Corp.
Amphenol provides connectivity solutions using AI and ML (machine learning) technologies. It provides AI-powered high-density, high-speed connectors and cables, and interconnect systems optimized for signal integrity and thermal performance.
APH benefits from a diversified business model. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. The company is a dominant force in AI/data center interconnects, commanding an estimated 33% market share. APH’s advanced fiber-optic and high-density interconnect solutions are now essential for hyperscale data centers and 5G deployments.
Expanding spending on both current and next-generation defense technologies bodes well for APH’s top-line growth. Apart from Defense, Amphenol’s prospects ride on strong demand for its solutions across Commercial Air, Industrial, and IT Datacom. Solid demand for high-speed and power interconnect products, which are critical components in next-gen IT systems, creates a long-term growth opportunity.
Rising AI workloads and cloud infrastructure upgrades are fueling demand for high-speed interconnects. This momentum is expected to support the Communications Solutions segment. Electrification in transportation and increasing electronic content in medical devices are driving the adoption of APH’s cable assemblies and sensor-based systems. These drivers are expected to support steady growth in the Interconnect and Sensor Systems segment.
Impressive Estimate Revisions
For 2025, the Zacks Consensus Estimate currently shows revenues of $21.54 billion, suggesting an improvement of 41.5% year over year and earnings per share of $3.02, indicating an increase of 59.8% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 30 days.
For 2026, the Zacks Consensus Estimate currently shows revenues of $23.49 billion, suggesting an improvement of 9% year over year and earnings per share of $3.38, indicating an increase of 11.7% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 30 days.
Image Source: Zacks Investment Research
AppLovin Corp.
AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. As a leading ad-tech company, APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
AppLovin has solidified its leadership in mobile advertising, powered by its next-gen AI engine, Axon 2.0. Since its debut, Axon 2.0 has radically enhanced APP’s ad performance, helping to quadruple advertising spend on its platform. This explosive growth has led to an estimated $10 billion annual run rate in ad spend from gaming clients, pushing APP into the upper echelon of global ad tech firms by valuation.
Axon 2.0’s importance goes far beyond mere optimization. In a post-Identifier for Advertisers environment that disrupted mobile user acquisition strategies, Axon 2.0 served as a critical catalyst for recovery.
APP’s AI-enabled Audience+ marketing platform is also increasing its reach into the direct-to-consumer and e-commerce space. Moreover, APP’s MAX publisher base is expanding at a significantly faster rate, underscoring Axon 2.0’s strategic advantage.
AppLovin’s leadership is aggressively expanding, planning a self-serve referral platform launch in October 2025 and aiming for a full global rollout of its Axon advertising platform in 2026. APP targets a 20-30% year-over-year growth rate fueled mainly by its gaming segment and AI-driven ad monetization.
Excellent Estimate Revisions
For 2025, the Zacks Consensus Estimate currently shows revenues of $5.5 billion, suggesting an improvement of 16.7% year over year and earnings per share of $8.95, indicating an increase of 97.6% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the last 30 days.
For 2026, the Zacks Consensus Estimate currently shows revenues of $6.9 billion, suggesting an improvement of 26.2% year over year and earnings per share of $13.50, indicating an increase of 50.9% year over year. The Zacks Consensus Estimate for current-year earnings has improved 11.3% over the last 30 days.
Image Source: Zacks Investment Research