Evercore ISI’s tech stocks to watch in the new year include Amphenol, Apple, and Arista Networks. Analyst Amit Daryanani expects demand for artificial intelligence infrastructure to maintain 2025 momentum as 2026 approaches. But cash flow and profits will be more important, he said. “CY25 was a strong year, with IT hardware/network coverage expanding as AI adoption accelerated. Stock price performance reflected revenue growth rather than earnings,” Daryanani wrote. “We see margin/(free cash flow) becoming a key focus as investors look to ‘AI utility’ rather than just ‘AI investing’ to determine which stocks can outperform.” Analysts’ top stocks for next year include Amphenol, Apple and Arista Networks’ ‘AAA’ portfolio. He said these stocks allow investors to “set it and forget it.” “All of these companies have strong track records and are uniquely positioned to benefit from the widespread adoption of AI,” Daryanani wrote. Electronic connector maker Amphenol has soared 94% since the beginning of the year as of Monday morning. Evercore ISI expects the company’s stock to continue outperforming its peers in both revenue and profitability in 2026. “With structurally high incremental margins (approximately 30%) and strong execution, we believe APH is well-positioned for above-market growth and continued EPS,” the company wrote. The company also believes Apple is well-positioned heading into the new year on the back of strong metrics in both the September and December quarters. The iPhone maker is up 63% this year. “iPhone momentum appears to be accelerating after the launch of the iPhone 17 lineup, and growth in low-to-mid-teen services appears to be sustainable with a diverse growth base,” Daryanani said. Apple’s big discussion next year will likely center on how the company can monetize and drive additional revenue streams from the upcoming Siri upgrade next spring. AAPL Year-to-date Apple stock has climbed 19% in 2025. Cloud networking stock Arista Networks has soared 19% in 2025. Daryanani said the company continues to see upside to its 2026 AI total revenue target. “We believe ANET has the potential to deliver revenue acceleration (~27% growth in 2026) in 2026 through strong momentum across its AI program (backend), core frontend growth, increased campus share, and new product customer ramps (OAI, xAI, etc.),” Evercore ISI wrote. ANET YTD Mountain Arista Networks (Year to date)
