Wall Street Analysts Highlight Broadcom, Zscaler, and Oracle as Long-Term AI Growth Plays

Broadcom Leads with Strong AI Revenue Growth and Major Contract

Broadcom (AVGO) delivered impressive fiscal third-quarter results, propelled by accelerating artificial intelligence demand and stabilizing non-AI semiconductor segments. Following the earnings release, the stock rallied after the company disclosed securing a $10 billion customer contract, widely speculated by JPMorgan analyst Harlan Sur to be OpenAI based on AI inference use cases and prior research.

Sur reaffirmed his buy rating on Broadcom, raising the price target from $325 to $400. He highlighted an 18% sequential increase in AI revenue during Q3 FY25 and expects a 19% quarter-over-quarter rise to $6.2 billion in Q4. Sur projects Broadcom’s AI revenue to reach approximately $20 billion in fiscal 2025, with forecasts of a 125% increase to $45 billion in fiscal 2026 and a further 60% growth in fiscal 2027. He attributes this momentum to the company’s custom AI chips, which offer distinct advantages in efficiency and economics.

Despite macroeconomic uncertainties, Sur emphasized Broadcom’s diversified portfolio and product cycles as supporting a robust revenue growth trajectory. Sur ranks among the top analysts tracked by TipRanks, with a 67% success rate and an average return of 26.1% on his recommendations.

Zscaler Capitalizes on Growing AI Security Demand

Cybersecurity firm Zscaler (ZS) reported strong fourth-quarter fiscal 2025 results, driven by increasing demand for its Zero Trust and AI security offerings. Stifel analyst Adam Borg reiterated a buy rating and raised his price target to $330 from $295, citing solid billings growth and a 31% increase in remaining performance obligations (RPO), marking the fourth consecutive quarter of acceleration.

Borg praised Zscaler’s expanding product portfolio, including newer solutions like Z-Flex, which he believes enhance organizational security postures while facilitating vendor consolidation and cost reduction. He expects the company to maintain high-teens revenue growth and margin expansion supported by multiple growth drivers.

While TipRanks’ AI Analyst holds a neutral rating on Zscaler with a $298 price target, Borg’s optimistic outlook reflects confidence in the company’s positioning in emerging AI security markets. Borg’s track record includes a 77% success rate and an average return of 16.9%.

Oracle’s Cloud Growth and Contract Wins Boost AI Market Confidence

Oracle (ORCL) experienced a stock surge despite missing Q1 earnings estimates, buoyed by robust cloud growth projections and a remarkable 359% year-over-year increase in remaining performance obligations to $455 billion. Jefferies analyst Brent Thill raised his price target from $270 to $360, maintaining a buy rating.

Thill highlighted Oracle’s addition of $317 billion sequentially in RPO, nearly five times its fiscal 2026 revenue estimate of $67 billion, driven by several multi-billion-dollar contracts. This supports growing optimism around AI opportunities, particularly in Oracle Cloud Infrastructure (OCI), which is forecasted to grow 77% to $18 billion in fiscal 2026 and surge to $144 billion by 2030. The growth projections reflect rising demand for AI inference and training workloads.

Additionally, Oracle’s multicloud database revenue showed significant acceleration, underpinning its multicloud strategy and expansion to 71 data centers across hyperscaler partners. Thill ranks in the top tier of analysts on TipRanks, with a 67% success rate and 14.9% average return.

Outlook

Broadcom, Zscaler, and Oracle exemplify companies leveraging AI-driven growth opportunities across semiconductors, cybersecurity, and cloud infrastructure. Their strong earnings results, strategic contract wins, and bullish analyst forecasts underscore investor interest in AI as a transformative market force. Continued monitoring of AI revenue growth, contract acquisitions, and competitive positioning will be critical to assessing sustained performance.