The artificial intelligence (AI) frenzy remains intact as the AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. U.S. stock markets maintained their northward journey in 2026 after an astonishing rally over the past three years. The strong performance was primarily driven by a rejuvenated AI trade.
Here, we have identified three Zacks top-ranked AI-infrastructure stocks that have provided more than 35% returns year to date. However, these stocks are currently trading at more than a 35% discount to their 52-week high prices.
At this stage, investment in these stocks should be prudent in the rest of 2026 and beyond. These are: Amkor Technology Inc. AMKR, Ciena Corp. CIEN and TTM Technologies Inc. TTMI. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our two picks year to date.
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Amkor Technology Inc.
Amkor has been benefiting from accelerating AI and HPC packaging demand. Computing revenues were reported at a record level in the second quarter of 2026, up approximately 26% year over year.
AI-Fueled Growth
Management pointed to accelerating Computing growth of nearly 30% sequentially in the third quarter, driven by AI-powered data center demand and the continued ramp of the HDFO CPU program, partly offset by a high single-digit sequential decline in Communications tied to the planned SiP transition from Korea to Vietnam and the ongoing memory supply constraints.
Recently announced 10-year strategic partnerships with Taiwan Semiconductor Manufacturing Co. Ltd. TSM and a multi-year agreement with NVIDIA Corp. NVDA are reinforcing the company's long-term advanced packaging growth trajectory.
Robust Estimate Revisions
Amkor has an expected revenue and earnings growth rate of 14% and 73.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 25% over the last 60 days.
AMKR has an expected revenue and earnings growth rate of 11.8% and 4.3%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 25.9% over the last 60 days.
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Huge Price Upside Potential
The stock price has rallied 38.3% year to date. Despite this, AMKR is currently trading at a 43.5% discount to its 52-week high price. The short-term average price target of brokerage firms represents an increase of 34% from the last closing price of $54.59. The brokerage target price is currently in the range of $60-90. This indicates a maximum upside of 64.9% and no downside.
Ciena Corp.
Ciena is well poised to benefit from accelerating AI-driven optical demand, led by a growing backlog, customer commitments extending through 2029 and new supply agreements that strengthen its multiyear growth outlook. Outlook is strengthening as AI-driven bandwidth demand expands across WAN, AI-WAN and data center connectivity.
Data Center Connectivity Opportunity
CIEN’s revenues are primarily generated from packet optical transport, switching products, integrated networks and software platforms. CIEN continues to diversify its footprint in data center connectivity and AI networking infrastructure.
In the fiscal third quarter, direct cloud provider revenue rose 82% year over year and represented 53% of sales, while interconnects more than doubled. Fiscal third-quarter 2026 backlog rose to $8.5 billion and is expected to exceed $10 billion at the year-end. Fiscal 2026 revenue guidance increased to $6.42 billion. For fiscal 2027, revenues are projected to grow at least 30% to $8.3-$8.4 billion, reinforcing the multiyear demand outlook.
Robust Estimate Revisions
Ciena has an expected revenue and earnings growth rate of 34.6% and more than 100%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 3.4% over the last 30 days.
CIEN has an expected revenue and earnings growth rate of 30.1% and 60.2%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.2% over the last seven days.
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Huge Price Upside Potential
The stock price has rallied 57.6% year to date. Despite this, CIEN is currently trading at a 42% discount to its 52-week high price. The short-term average price target of brokerage firms represents an increase of 43.9% from the last closing price of $368.56. The brokerage target price is currently in the range of $347-660. This indicates a maximum upside of 79.1% and a downside of 5.9%.
TTM Technologies Inc.
TTM Technologies continues to benefit from AI infrastructure investment and defense modernization, supporting demand for PCBs, RF components and integrated electronic solutions. TTMI continues to strengthen its competitive position by expanding beyond traditional PCB manufacturing into higher-value electronic solutions.
AI and Defense Demand Drive Growth
TTMI continues to benefit from two durable industry drivers: AI infrastructure investment and defense modernization. TTMI is seeing sustained demand for advanced PCBs, RF components and integrated electronic solutions used in AI servers, networking equipment and mission-critical defense applications.
During the second quarter of 2026, Data Center and Networking revenues grew 91% year over year, while Aerospace and Defense revenues increased 14%. Management raised its full-year 2026 outlook to approximately $4.4 billion in revenues and expects non-GAAP EPS to approach $5.00. TTMI also reiterated confidence in achieving 15%-20% organic revenue growth in 2027 and 2028, supported by continued AI deployments and expanding defense programs.
Robust Estimate Revisions
TTM Technologies has an expected revenue and earnings growth rate of 50.9% and 95.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 17.8% over the last 60 days.
TTMI has an expected revenue and earnings growth rate of 24.5% and 43.2%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 24.8% over the last 60 days.
Image Source: Zacks Investment Research
Huge Price Upside Potential
The stock price has rallied 84.7% year to date. Despite this, TTMI is currently trading at a 43.1% discount to its 52-week high price. The short-term average price target of brokerage firms represents an increase of 73.7% from the last closing price of $127.47. The brokerage target price is currently in the range of $205-250. This indicates a maximum upside of 96.1% and no downside.
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Ciena Corporation (CIEN): Free Stock Analysis Report
TTM Technologies, Inc. (TTMI): Free Stock Analysis Report
Amkor Technology, Inc. (AMKR): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).