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Buy 3 AI-Driven Stocks for 2H 2026 Despite Triple-Digit Returns in 1H
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Key Takeaways
STRL is benefiting from AI data center demand and earlier-than-planned project execution.
SMTC sees AI networking demand growth, with portfolio moves focused on optical module opportunities.
VIAV is witnessing strong demand from AI hyperscalers and infrastructure providers.
The information technology sector has been witnessing a bull-run over the past three and half years reviving the entire U.S. stock markets single-handedly after the coronavirus-led devastation. The generic artificial intelligence (AI) technologies and their massive adoption across the globe have completely changed the Wall Street scenario. The latest advent of agentic AI is giving the space a further in every sphere of the economy.
Here, we have identified three AI-driven stocks that have provided triple-digit returns year to date. Despite having skyrocketed, these stocks currently carry double-digit upside potential for the short term. Moreover, their attractive product portfolio, solid pipeline and a favorable Zacks Rank indicate long-term prospects.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Sterling Infrastructure Inc.
Zacks Rank #1 Sterling Infrastructure specializes in constructing complex data centers, e-commerce distribution facilities, and manufacturing sites. The company is a major provider of high-density, AI-Powered data centers. STRL is a notable beneficiary of the massive AI data center boom.
E-Infrastructure Solutions projects develop advanced, large-scale site development systems and services for data centers, e-commerce distribution centers, warehousing, transportation, energy and more.
Sterling’s combined offering of site development and electrical services is gaining traction faster than expected. STRL highlighted that in the first quarter of 2026, two data center campuses moved to integrated execution six to eight months earlier than planned, validating cross-sell traction and schedule compression benefits.
STRL’s complementary investments — AI tools that increased project manager capacity by about 15% and a modular manufacturing program that will triple capacity within nearly 18 months — reduce field labor intensity and enhance quality/efficiency.
Strong Estimate Revisions and Price Upside
Sterling Infrastructure has an expected revenue and earnings growth rate of 59.2% and 77.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.1% over the last 30 days.
Moreover, STRL has an expected revenue and earnings growth rate of 29.1% and 42.1%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 5.5% over the last 30 days.
Image Source: Zacks Investment Research
The short-term average price target of brokerage firms for the stock represents an increase of 9.7% from the last closing price of $861.88. The brokerage target price is currently in the range of $884-$1,015. This indicates a maximum upside of 17.8% and no downside. The risk/reward ratio is extremely favorable.
Semtech Corp.
Zacks Rank #2 Semtech is benefiting from AI-led data center networking demand, with FiberEdge anchored in the current generation and CopperEdge widening the content opportunity as 1.6T ramps begin.
SMTC’s LoRa is extending beyond core utilities into broader multi-protocol use cases, and management expects another step up in the next quarter. High-end consumers are also seeing share and content gains in protection and sensing.
SMTC’s portfolio actions, including the pending cellular module divestiture and the HieFo integration, are aimed at sharpening focus and adding photonics capability in 1.6T and 3.2T optical modules.
Solid Estimate Revisions and Price Upside
Semtech has an expected revenue and earnings growth rate of 29.1% and 55.6%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 20.1% over the last 30 days.
Moreover, SMTC has an expected revenue and earnings growth rate of 20.3% and 36%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 31.6% over the last 30 days.
Image Source: Zacks Investment Research
The short-term average price target of brokerage firms for the stock represents an increase of 29.5% from the last closing price of $158.23. The brokerage target price is currently in the range of $175-$230. This indicates a maximum upside of 45.3% and no downside. The risk/reward ratio is extremely favorable.
Viavi Solutions Inc.
Zacks Rank #2 Viavi Solutions benefits from growing demand across data center, AI infrastructure, aerospace and defense markets, supported by its comprehensive portfolio offerings. VIAV’s Spirent asset integration has expanded its presence in high-speed Ethernet and network security testing, while recent product launches enhance its capabilities in AI data center validation, cybersecurity and resilient timing applications.
VIAV’s revenue growth in Network and Service Enablement continues to be supported by demand from hyperscalers, semiconductor infrastructure providers and the broader data center ecosystem. Management highlighted momentum across scale-up and scale-out architectures tied to AI workloads and high-speed interconnect technologies.
Recent investments in PCIe 7.0 analysis capabilities and the launch of the CyberFlood CF1000 platform expand VIAV’s ability to validate AI inference workloads, encrypted traffic and next-generation data center infrastructure. These developments strengthen exposure to long-term AI-related network testing demand and support continued growth in lab, production and field-testing solutions.
Impressive Estimate Revisions and Price Upside
Viavi Solutions has an expected revenue and earnings growth rate of 20.1% and 30.9%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 0.8% over the last 30 days.
Image Source: Zacks Investment Research
The short-term average price target of brokerage firms for the stock represents an increase of 37% from the last closing price of $47.17. The brokerage target price is currently in the range of $60-$70. This indicates a maximum upside of 48.4% and no downside. The risk/reward ratio is extremely favorable.
View the Zacks #1 Rank List
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Buy 3 AI-Driven Stocks for 2H 2026 Despite Triple-Digit Returns in 1H
Key Takeaways
The information technology sector has been witnessing a bull-run over the past three and half years reviving the entire U.S. stock markets single-handedly after the coronavirus-led devastation. The generic artificial intelligence (AI) technologies and their massive adoption across the globe have completely changed the Wall Street scenario. The latest advent of agentic AI is giving the space a further in every sphere of the economy.
Here, we have identified three AI-driven stocks that have provided triple-digit returns year to date. Despite having skyrocketed, these stocks currently carry double-digit upside potential for the short term. Moreover, their attractive product portfolio, solid pipeline and a favorable Zacks Rank indicate long-term prospects.
These stocks are: Sterling Infrastructure Inc. (STRL - Free Report) , Semtech Corp. (SMTC - Free Report) and Viavi Solutions Inc. (VIAV - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Sterling Infrastructure Inc.
Zacks Rank #1 Sterling Infrastructure specializes in constructing complex data centers, e-commerce distribution facilities, and manufacturing sites. The company is a major provider of high-density, AI-Powered data centers. STRL is a notable beneficiary of the massive AI data center boom.
E-Infrastructure Solutions projects develop advanced, large-scale site development systems and services for data centers, e-commerce distribution centers, warehousing, transportation, energy and more.
Sterling’s combined offering of site development and electrical services is gaining traction faster than expected. STRL highlighted that in the first quarter of 2026, two data center campuses moved to integrated execution six to eight months earlier than planned, validating cross-sell traction and schedule compression benefits.
STRL’s complementary investments — AI tools that increased project manager capacity by about 15% and a modular manufacturing program that will triple capacity within nearly 18 months — reduce field labor intensity and enhance quality/efficiency.
Strong Estimate Revisions and Price Upside
Sterling Infrastructure has an expected revenue and earnings growth rate of 59.2% and 77.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.1% over the last 30 days.
Moreover, STRL has an expected revenue and earnings growth rate of 29.1% and 42.1%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 5.5% over the last 30 days.
Image Source: Zacks Investment Research
The short-term average price target of brokerage firms for the stock represents an increase of 9.7% from the last closing price of $861.88. The brokerage target price is currently in the range of $884-$1,015. This indicates a maximum upside of 17.8% and no downside. The risk/reward ratio is extremely favorable.
Semtech Corp.
Zacks Rank #2 Semtech is benefiting from AI-led data center networking demand, with FiberEdge anchored in the current generation and CopperEdge widening the content opportunity as 1.6T ramps begin.
SMTC’s LoRa is extending beyond core utilities into broader multi-protocol use cases, and management expects another step up in the next quarter. High-end consumers are also seeing share and content gains in protection and sensing.
SMTC’s portfolio actions, including the pending cellular module divestiture and the HieFo integration, are aimed at sharpening focus and adding photonics capability in 1.6T and 3.2T optical modules.
Solid Estimate Revisions and Price Upside
Semtech has an expected revenue and earnings growth rate of 29.1% and 55.6%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 20.1% over the last 30 days.
Moreover, SMTC has an expected revenue and earnings growth rate of 20.3% and 36%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 31.6% over the last 30 days.
Image Source: Zacks Investment Research
The short-term average price target of brokerage firms for the stock represents an increase of 29.5% from the last closing price of $158.23. The brokerage target price is currently in the range of $175-$230. This indicates a maximum upside of 45.3% and no downside. The risk/reward ratio is extremely favorable.
Viavi Solutions Inc.
Zacks Rank #2 Viavi Solutions benefits from growing demand across data center, AI infrastructure, aerospace and defense markets, supported by its comprehensive portfolio offerings. VIAV’s Spirent asset integration has expanded its presence in high-speed Ethernet and network security testing, while recent product launches enhance its capabilities in AI data center validation, cybersecurity and resilient timing applications.
VIAV’s revenue growth in Network and Service Enablement continues to be supported by demand from hyperscalers, semiconductor infrastructure providers and the broader data center ecosystem. Management highlighted momentum across scale-up and scale-out architectures tied to AI workloads and high-speed interconnect technologies.
Recent investments in PCIe 7.0 analysis capabilities and the launch of the CyberFlood CF1000 platform expand VIAV’s ability to validate AI inference workloads, encrypted traffic and next-generation data center infrastructure. These developments strengthen exposure to long-term AI-related network testing demand and support continued growth in lab, production and field-testing solutions.
Impressive Estimate Revisions and Price Upside
Viavi Solutions has an expected revenue and earnings growth rate of 20.1% and 30.9%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 0.8% over the last 30 days.
Image Source: Zacks Investment Research
The short-term average price target of brokerage firms for the stock represents an increase of 37% from the last closing price of $47.17. The brokerage target price is currently in the range of $60-$70. This indicates a maximum upside of 48.4% and no downside. The risk/reward ratio is extremely favorable.