Analysts Identify Broadcom and Alphabet as Top Picks for Future Profit Growth

2025-12-26 companies

New York, Friday, 26 December 2025.
Leading market projections highlight Alphabet and Broadcom for robust returns, with Broadcom distinguishing itself in the semiconductor sector by maintaining a rare, perfect earnings-per-share rating.

Semiconductor Trajectory and AI Infrastructure

This perfect 99 EPS Rating places Broadcom at the pinnacle of the chip sector, a sentiment echoed by broader market analysis forecasting sustained momentum for artificial intelligence infrastructure [1][4]. Bank of America analyst Vivek Arya projects that the industry is merely at the midpoint of a transformation that could span a decade, with global semiconductor sales expected to surge 30% year-over-year and surpass $1 trillion annually by 2026 [4]. Within this expanding landscape, Nvidia (NVDA) remains a focal point; on December 24, 2025, the company cemented its technological footprint by licensing key AI chip technology from startup Groq, a strategic move that involves hiring top personnel from the startup [1]. Analysts currently assign Nvidia an average price target of $263.58, suggesting a potential upside of 39.749% from its December 24 closing price of $188.61 [4][5].

Broader Market Winners and Rebounds

Beyond the semiconductor sphere, financial and technology heavyweights are showing renewed vigor. Alphabet (GOOGL) and Lam Research (LRCX) join Charles Schwab (SCHW) as critical components of the ‘magnificent’ profit growth roster identified by equity analysts [1]. Charles Schwab, in particular, is noted for its rebound following a performance slump that persisted through 2023 and the first half of 2024 [1]. As of late December 2025, technical indicators suggest that Palantir, Tesla, and Google are maintaining positions within buy areas, offering actionable entry points for investors monitoring these high-cap leaders [5]. Meanwhile, in the medical technology space, Intuitive Surgical (ISRG) has garnered attention after receiving FDA approval for expanded use of its da Vinci robotic-assisted surgical system, potentially acting as a catalyst for the stock which has been trading just below an alternate entry point [7].

Analyst Sentiment and Sector Shifts

Recent daily analyst notes from major financial institutions reflect a cautiously optimistic outlook across diverse sectors as the year concludes. On December 24, Morgan Stanley adjusted its expectations for real estate investment trusts, boosting the price target for Realty Income (O) by 4.839% to $65.00 while maintaining an Equal Weight rating [2]. Simultaneously, the firm raised its target for Gaming and Leisure Properties (GLPI) to $53.00 [2]. In the consumer staples sector, Morgan Stanley reiterated an Overweight rating for Monster Beverage (MNST) on December 23, lifting its target to $87.00, an increase of 7.407% [2]. Looking at broader asset allocation trends, commodities have carved out a substantial presence in growth portfolios; precious metal stocks currently account for 40% of the IBD 50 list, driven by record highs in gold, silver, and copper prices [6].

Sources

earnings growth equity research