Goldman Sachs remains selectively bullish on artificial intelligence infrastructure builders heading into the new year. In a note published earlier in December, the Wall Street investment bank cited continued momentum in underlying demand for AI infrastructure as a catalyst in 2025. “We expect demand for AI data center equipment to remain robust in 2025/2026, which will benefit both those selling to hyperscalers (ANET, CSCO, JNPR) and also tier 2 cloud/enterprise (CSCO, DELL, HPE, SMCI, PENG),” wrote analysts led by Micgael Ng in the 53-page report. In a more cyclical part of the hardware and software sector, Goldman cited information technology distributors as an area that looks attractive. The company expects both the PC and campus networking markets to expand will return to growth and recovery in 2025. “Despite the 2024 miss, we believe the underlying drivers for a 2025 PC refresh are still intact, including the aging PC installations, Windows 10 end support and demand for AI-enabled PCs,” the analysts wrote. In the note, Goldman shared its top stock picks for the space heading into 2025, as seen below: Dell Technologies is up 53% in 2024, but Goldman believes there’s even more upside potential ahead for the PC maker . The bank’s 12-month price target of $165 is roughly 38% above where the shares closed on Thursday. Similarly, Goldman is bullish on Arista Networks, up 91% this year. The bank’s price target of $120 represents another 4% upside for the stock. “We are selectively bullish on ANET and DELL as beneficiaries of AI infrastructure demand due to their early market leadership in AI servers and switching capabilities,” Goldman wrote, adding that both names should deliver strong returns going forward. Goldman also called Penguin Solutions an attractive stock among AI infrastructure builders. Among information technology distributors, Goldman recommended Ingram Micro and TD Synnex. “We view IT distributors INGM and SNX, which are among the leading distributors of PCs and campus networking equipment, as (a) relatively more attractive way to invest in the 2025 cyclical recovery theme,” the bank said. Shares of TD Synnex are up 10% this year, and Goldman’s $141 price target implies the stock could rise another 18% from current levels. Although Ingram Micro stock is down 12% since its initial public offering price of $22 per share in October (Goldman was one of three lead managers in the IPO), the bank’s price target of $33 equates to potential upside of about 62% .
Goldman’s top software and hardware picks for 2025 include AI builders
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