AI-related jitters have crept into the market currently, with worries about overextended valuations and whether or not the massive spending behind AI will finally generate returns that justify the hype, prompting a bumpier tone in tech buying and selling. Finally, the broader indexes haven’t fallen a lot, however day-to-day swings have picked up as traders debate whether or not components of the AI commerce moved too far, too quick. Current pullbacks in a number of high-profile AI names have added to the unease, feeding discuss of a possible bubble and conserving sentiment on edge because the 12 months winds down.
Nonetheless, a number of the largest AI infrastructure names proceed to put up sturdy outcomes, forcing traders to reassess whether or not that is an overreaction or just rising pains in a long-term transformation.
A broad market evaluation from J.P. Morgan Wealth Administration captures the second clearly: “Regardless of persistent skepticism, the basics behind AI infrastructure and innovation stay sturdy. Nvidia and Google’s outcomes reinforce the sector’s endurance, however traders ought to stay conscious of ongoing questions on profitability and sustainability because the market continues to evolve… Disciplined investing is essential to keep away from speculative dangers.”
And self-discipline is strictly the stance JPM’s analysts are taking. Constructing on that view, they’re calling out two tech shares they see as well-positioned from right here. We’ve used the TipRanks information to see what’s driving that conviction. Let’s dive in.
Marvell Know-how (MRVL)
We’ll begin on the earth of semiconductor chips, information facilities, and networking tech, with Marvell Know-how. This firm is taken into account a mid-tier participant within the digital infrastructure trade, working on a much smaller scale than the multi-trillion-dollar giants like Nvidia and Broadcom, besides, Marvell nonetheless boasts a market cap of $72 billion and generated $5.77 billion in income in its fiscal 12 months 2025.
In Marvell’s core enterprise, the corporate is understood for producing high-quality, customized XPUs, CPUs, and DPUs – all important parts of high-end AI- and cloud-computing information heart tech. These are complemented by a variety of Ethernet and information heart switches, and electrical and optical connectivity units able to connecting racks, rows, and servers in any respect scales.
Marvell additionally produces community and connectivity options at enterprise scale, the very tech wanted to maintain companies related to the digital world. The corporate’s enterprise connectivity options are designed to allow mobility and cloud computing, selling the concept of a ‘borderless campus,’ a related enterprise that isn’t confined by the bounds of a brick-and-mortar presence.
Together with all of this, Marvell additionally offers the {hardware} wanted to attach 5G radio entry networks to the cloud, marrying the newest in networking and computing tech. Marvell has options for baseband, compute, networking, and safety, all permitting carriers to supply the scalability and efficiency that customers want. Briefly, Marvell has made itself indispensable in constructing the infrastructure of the AI world.
Marvell’s final set of quarterly outcomes, overlaying fiscal 2Q26, have been launched again in August; in that launch, the corporate reported quarterly revenues of $2 billion. This determine was up a powerful 57.5% year-over-year, though it simply missed the forecasters’ estimates by $10 million. On the backside line, Marvell reported a non-GAAP EPS of 67 cents; this was in step with the forecasts.
This firm’s momentum, and its publicity to a number of progress areas in AI and cloud computing, have JPM’s Harlan Sur taking a bullish stance. The 5-star analyst, rated among the many prime 1% of his friends by TipRanks, writes of Marvell, “Current commentary from cloud/hyperscaler Amazon, together with constructive commentary/earnings steering from take a look at specialist Teradyne, leaves us incrementally extra assured in regards to the near-term outlook for Marvell and the crew’s progress prospects in each its ASIC and optical companies for 2026… These developments reinforce each our and Marvell administration’s constructive view of the Trainium program (Trainium 2 and three). The quite a few different XPU deployment bulletins—useful for Marvell’s optical section— ought to drive a robust end to CY25 and assist strong progress in 2026 as nicely.”
Sur’s feedback lend assist to his Chubby (i.e., Purchase) ranking on the inventory, whereas his $120 value goal implies that the shares will achieve 44% over the subsequent 12 months. (To observe Sur’s observe report, click on right here)
This inventory has a Reasonable Purchase consensus ranking on the Avenue, primarily based on 32 evaluations that embody 23 Buys and 9 Holds. The shares are at present priced at $83.43 and the $93.23 common value goal implies about 12% upside from present ranges. (See MRVL inventory forecast)
Flex, Ltd.(FLEX)
The following inventory we’ll take a look at is Flex, Ltd, a tech inventory that focuses on electronics manufacturing companies and authentic design manufacturing. Whereas these is probably not a part of our on a regular basis expertise, they’re important fields in a variety of technological functions – and Flex is a serious participant on this realm. The corporate has a market cap of $21 billion and has been in enterprise since 1969 – and maintains twin headquarters in Singapore and in Austin, Texas.
Flex’s product strains embody a variety of important units, starting from busways, switchgear, modular enclosures, and energy administration programs mandatory to keep up dependable energy distributions that meet tough technical specs, to embedded energy merchandise and liquid cooling programs. The corporate additionally designs and builds full strains of normal electrical and digital parts, together with customized parts to suit the customers’ actual wants. These can embody strains of capacitors, inductors, antennas, resistors, semiconductors – and that’s solely a small a part of the record.
Merchandise are solely a part of what Flex gives its prospects. The corporate prides itself on its capability to work with its prospects and finish customers to design and engineer the right tech answer, to ship optimum efficiency on an accelerated time scale. That is supported by a world provide chain, superior manufacturing talent, and strong logistics experience. And eventually, Flex offers aftermarket companies, whether or not they’re wanted to assist merchandise or to reverse engineer new options.
This sort of experience – in design, engineering, manufacturing, and supply – is hardly restricted to anyone utility, and Flex works with prospects in a variety of industries. The corporate has its fingers within the automotive area, cloud computing, high-end networking, healthcare, information facilities, and heavy trade – and once more, that is solely a partial record. Flex is without doubt one of the many unsung tech firms that assist the headline grabbers of the fashionable economic system.
Trying on the firm’s monetary outcomes, we see that Flex reported fiscal 2Q26 on the finish of October. The corporate’s income got here to $6.8 billion, $90 million higher than anticipated and up 3.8% year-over-year. Flex’s bottom-line determine, the non-GAAP EPS of 79 cents, got here in 3 cents per share higher than had been anticipated. The corporate reported a quarterly free money stream of $305 million and completed fiscal Q2 with money and different liquid property totaling $2.25 billion.
Samik Chatterjee, one other of JPM’s top-rated tech consultants, notes two key factors about Flex. First, he discusses the corporate’s sturdy trade place and its potential for progress, saying, “Flex adopted different AI infrastructure suppliers in elevating its outlook for the 12 months led by stronger funding plans from prospects. The corporate raised its outlook for the 12 months, and extra importantly raised the outlook to a larger magnitude for the second half of its fiscal 12 months relative to beat in F2Q… The corporate outlined optimism in relation to Datacenter income progress outlook aided by the pipeline of alternatives ranging throughout hyperscalers, together with Amazon, Co-los, and Neo-Clouds.”
Chatterjee follows up along with his abstract of Flex’s potential to maintain bringing in returns, including in regards to the firm, “We’re elevating our income and earnings forecasts for the 12 months, which now implies mid-single digit progress for FY25, however the rising mixture of AI revenues and enchancment in end-market traits throughout Healthcare, Optical, SatCom, along with stabilization in Autos, raises our confidence in income progress nearer to high-single digits within the coming years. The earnings drivers stay favorable when incorporating margin enlargement from higher combine in addition to a sturdy tempo of buybacks, and assist our expectations for share value upside…”
Chatterjee places an Chubby (i.e., Purchase) ranking on Flex’s shares, and he enhances that with a $75 value goal, suggesting a one-year upside potential of 31%. (To observe Chatterjee’s observe report, click on right here)
This tech inventory will get a unanimous Robust Purchase consensus ranking, primarily based on 7 constructive analyst evaluations. The shares are at present buying and selling at $57.35, and their $76.57 common value goal implies that the inventory will achieve 33.5% on the one-year horizon. (See FLEX inventory forecast)
To seek out good concepts for shares buying and selling at enticing valuations, go to TipRanks’ Finest Shares to Purchase, a device that unites all of TipRanks’ fairness insights.
Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is rather essential to do your personal evaluation earlier than making any funding.
