Stifel Identifies Top Tech Picks, Highlighting AI and Value Opportunities

Investment firm Stifel has identified several technology stocks it views as top opportunities, highlighting companies across the software, manufacturing, and infrastructure sectors. The firm's analysis points to specific catalysts for each, including artificial intelligence monetization, strong secular growth trends, and attractive valuations.

AI and Infrastructure Plays

Stifel's selections emphasize companies positioned to benefit from the ongoing build-out and application of artificial intelligence. The firm sees clear paths to growth for both established leaders and key component suppliers.

• Meta Platforms (META): Stifel highlighted Meta's ability to monetize AI through its core advertising stack. The firm noted that returns on its significant capital expenditures, guided to over $120 billion at the midpoint, are becoming clearer, reducing perceived risk. Meta's AI assistant has reportedly reached over 1 billion monthly active users.
• Coherent Corp (COHR): The company is a key enabler of AI network construction through its datacom transceivers. Stifel pointed to Coherent’s internal manufacturing capabilities, including a new 6-inch wafer fabrication facility, as a competitive advantage that could improve costs and production. A better-than-expected ramp of 1.6T transceivers is seen as a key catalyst.
• CDW Corporation (CDW): Stifel sees an opportunity for CDW to emerge as an AI winner by serving its core mid-market and small business customers. The firm noted that the company's valuation has contracted to multi-year lows while management has accelerated share buybacks.

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Growth and Value Opportunities

Beyond pure-play AI, Stifel also pointed to companies offering compelling risk/reward profiles based on recent stock performance, strong cash flow, and accelerating growth trajectories.

• Jabil (JBL): The firm added Jabil to its favorites list following what it characterized as an "overdone sell-off." Stifel cited a compelling business model with exposure to long-term growth drivers like AI computing, electric vehicles, and healthcare technology, expecting continued margin expansion.
• Salesforce (CRM): Stifel views Salesforce as offering an attractive risk/reward profile, citing its potential for sustainable double-digit free cash flow growth and a valuation below its peer group. The firm also noted the company has over $20 billion remaining on its share repurchase authorization.
• nCino (NCNO): Described as an "attractive organic accelerating growth story," nCino is recognized for its strong competitive position and high incremental margins of around 50%. Stifel projects the company will grow EBITDA at an approximate 25% compound annual growth rate from fiscal 2025 through 2028.