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4 Tech Stocks to Buy as S&P 500 Closes Above 7,500 Milestone
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Key Takeaways
The S&P 500 closed above 7,500 for the first time after rebounding from March losses.
AVGO expects 67.9% earnings growth this year, with estimates rising 1.5% in 60 days.
CSCO, ADI and AMAT posted earnings estimate increases alongside strong growth forecasts.
Wall Street has remained volatile for most of the year. However, major indexes have rallied, with the S&P 500 scoring new records. On Thursday, the S&P 500 closed above 7,500 for the first time in history.
While high inflation and geopolitical tensions have posed as headwinds for the index, optimism surrounding AI and an impressive performance by mega-cap tech stocks have driven the rally.
Given the solid bull run, it would be ideal to invest in S&P 500 stocks, such as Cisco Systems, Inc. (CSCO - Free Report) , Broadcom Inc. (AVGO - Free Report) , Analog Devices, Inc. (ADI - Free Report) and Applied Materials, Inc. (AMAT - Free Report) , which have strong potential in 2026.
S&P 500 Hits New Record
The S&P 500 rose 0.8% on Thursday to end at 7,501.39 points, finishing above the 7,500 milestone for the first time. The index got off to a strong start this year but lost all its gains in March as the Iran conflict escalated.
The S&P 500 dropped more than 8% during March and early April amid rising tensions in the Middle East. Markets later rebounded after President Trump announced a two-week ceasefire.
The ongoing conflict has continued to pressure Wall Street, with the S&P 500 among the hardest hit. Oil prices have climbed more than 30% since the war began, and concerns remain despite the temporary ceasefire.
A rebound in energy stocks and a solid rally in technology shares helped the index recover its losses. Investor optimism has also been driven by heavy spending on AI infrastructure by mega-cap tech companies.
Year to date, the S&P 500 has gained 3.6% and is poised for a rally in the coming months. Major brokerages have also raised their targets for 2026. According to a Goldman Sachs report, the index is projected to rise 12% in 2026. JPMorgan has also raised its outlook for the index, forecasting that the S&P 500 will surpass 7,600 this year.
4S&P 500 Stocks With Growth Potential
Cisco Systems
Cisco Systems, Inc. enables enterprises and service providers to deliver highly secure connectivity from workplaces to data centers worldwide. CSCO delivers a unified architecture with integrated, end-to-end solutions that help customers simplify complex challenges.
Cisco Systems’ expected earnings growth for the current year is 9.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. CSCO has a Zacks Rank # 2 (Buy).
Broadcom Inc.
Broadcom Inc. is a premier designer, developer and global supplier of a broad range of semiconductor devices, with a focus on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products. AVGO’s semiconductor solutions are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
Broadcom’s expected earnings growth rate for the current year is 67.9%. The Zacks Consensus Estimate for the current-year earnings has improved 1.5% over the past 60 days. AVGO currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Analog Devices, Inc.
Analog Devices, Inc. is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed-signal and digital signal processing (DSP) integrated circuits. ADI’s product line is composed of amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors.
Analog Devices’ expected earnings growth rate for the current year is 45.7%. The Zacks Consensus Estimate for the current-year earnings has improved 0.2% over the past 60 days. ADI currently has a Zacks Rank #2.
Applied Materials
Applied Materials, Inc. is one of the world's largest suppliers of equipment for the fabrication of semiconductors, flat panel liquid crystal displays, and solar photovoltaic cells and m odules. AMAT also offers deployment and support services related to the equipment supplied.
Applied Materials’ expected earnings growth rate for the current year is 18.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. AMAT currently carries a Zacks Rank #2.
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4 Tech Stocks to Buy as S&P 500 Closes Above 7,500 Milestone
Key Takeaways
Wall Street has remained volatile for most of the year. However, major indexes have rallied, with the S&P 500 scoring new records. On Thursday, the S&P 500 closed above 7,500 for the first time in history.
While high inflation and geopolitical tensions have posed as headwinds for the index, optimism surrounding AI and an impressive performance by mega-cap tech stocks have driven the rally.
Given the solid bull run, it would be ideal to invest in S&P 500 stocks, such as Cisco Systems, Inc. (CSCO - Free Report) , Broadcom Inc. (AVGO - Free Report) , Analog Devices, Inc. (ADI - Free Report) and Applied Materials, Inc. (AMAT - Free Report) , which have strong potential in 2026.
S&P 500 Hits New Record
The S&P 500 rose 0.8% on Thursday to end at 7,501.39 points, finishing above the 7,500 milestone for the first time. The index got off to a strong start this year but lost all its gains in March as the Iran conflict escalated.
The S&P 500 dropped more than 8% during March and early April amid rising tensions in the Middle East. Markets later rebounded after President Trump announced a two-week ceasefire.
The ongoing conflict has continued to pressure Wall Street, with the S&P 500 among the hardest hit. Oil prices have climbed more than 30% since the war began, and concerns remain despite the temporary ceasefire.
A rebound in energy stocks and a solid rally in technology shares helped the index recover its losses. Investor optimism has also been driven by heavy spending on AI infrastructure by mega-cap tech companies.
Year to date, the S&P 500 has gained 3.6% and is poised for a rally in the coming months. Major brokerages have also raised their targets for 2026. According to a Goldman Sachs report, the index is projected to rise 12% in 2026. JPMorgan has also raised its outlook for the index, forecasting that the S&P 500 will surpass 7,600 this year.
4S&P 500 Stocks With Growth Potential
Cisco Systems
Cisco Systems, Inc. enables enterprises and service providers to deliver highly secure connectivity from workplaces to data centers worldwide. CSCO delivers a unified architecture with integrated, end-to-end solutions that help customers simplify complex challenges.
Cisco Systems’ expected earnings growth for the current year is 9.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. CSCO has a Zacks Rank # 2 (Buy).
Broadcom Inc.
Broadcom Inc. is a premier designer, developer and global supplier of a broad range of semiconductor devices, with a focus on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products. AVGO’s semiconductor solutions are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
Broadcom’s expected earnings growth rate for the current year is 67.9%. The Zacks Consensus Estimate for the current-year earnings has improved 1.5% over the past 60 days. AVGO currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Analog Devices, Inc.
Analog Devices, Inc. is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed-signal and digital signal processing (DSP) integrated circuits. ADI’s product line is composed of amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors.
Analog Devices’ expected earnings growth rate for the current year is 45.7%. The Zacks Consensus Estimate for the current-year earnings has improved 0.2% over the past 60 days. ADI currently has a Zacks Rank #2.
Applied Materials
Applied Materials, Inc. is one of the world's largest suppliers of equipment for the fabrication of semiconductors, flat panel liquid crystal displays, and solar photovoltaic cells and m odules. AMAT also offers deployment and support services related to the equipment supplied.
Applied Materials’ expected earnings growth rate for the current year is 18.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. AMAT currently carries a Zacks Rank #2.