The technology sector is gaining momentum from the ongoing wave of digital transformation, driven by the rapid adoption of Artificial Intelligence (AI). Technology companies have been spending heavily on AI as demand expands beyond model training into inference, agentic AI and eventually physical AI, creating sustained demand for advanced semiconductors. Rather than being concentrated in a single chip category, AI is increasing investments across leading-edge logic, DRAM, NAND, High-Bandwidth Memory (HBM) and advanced packaging. Demand is being fueled by hyperscaler investments and enterprise AI adoption.
Simultaneously, as enterprises build AI applications, demand for platforms that simplify AI development, testing and deployment has been increasing. Enterprises are investing heavily in organizing, governing and preparing data and demand for enterprise automation software has been on the rise. AI workloads consume significantly more compute resources than traditional applications, making cloud observability and monitoring applications more in demand. AI expands the attack surface while enabling attackers to discover vulnerabilities faster, thereby driving cybersecurity spending.
These factors bode well for technology stocks, a number of which are set to report quarterly results over the next couple of weeks. We pick four technology stocks — Alphabet GOOGL, Texas Instruments TXN, Amphenol APH and Lam Research LRCX — well-poised to beat earnings estimates this season.
Technology Stocks Riding on AI Boom, Investments
AI demand is escalating, and that has increased the need for AI infrastructure capacity expansion, including AI-optimized IaaS, AI-optimized servers, AI network fabric, AI processing semiconductors and devices. Per Gartner, global AI spending is expected to hit $2.59 trillion in 2026, indicating 47% growth over 2025.
Massive investment in chips, particularly graphics processing units (GPUs), and customized accelerators is driving demand for semiconductors. Demand for advanced process technologies (3 nm and 5 nm) is increasing. Per the Semiconductor Industry Association data, semiconductor sales in April 2026 were $110.5 billion, up 93.9% year over year and 11% month over month. In May, sales were $120.6 billion, up 9.2% month over month and 104.1% year over year.
How to Pick Earnings Estimates Beating Stocks?
Finding technology stocks with the potential to beat earnings estimates can be daunting. Our proprietary methodology, however, makes it fairly simple.
You could narrow down the list of choices by looking at stocks that have the combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP is our proprietary methodology for determining stocks that have the best chances to surprise with their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this combination of ingredients, the odds of a positive earnings surprise are as high as 70%.
Top Bets
Alphabet currently has an Earnings ESP of +1.92% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alphabet’s second-quarter results are expected to have benefited from sustained momentum in Google Search. AI Overviews and AI Mode have been increasing user engagement and pushing search queries to record levels, while Gemini is improving Google’s understanding of longer and more complex queries. This should have supported paid-click growth, ad relevance and advertiser returns. The continued adoption of AI Max and Performance Max could also have lifted advertising demand as businesses use generative AI for targeting, creative development and bidding.
Google Cloud is likely to have remained the fastest-growing part of Alphabet’s business. YouTube should have provided another growth catalyst, supported by direct-response advertising, connected-TV viewing, Shorts monetization and improving brand demand.
The company is scheduled to report second-quarter 2026 results on July 22. The Zacks Consensus Estimate for earnings has increased by a penny to $2.87 per share over the past month and suggests 24.24% growth over the figure reported in the year-ago quarter.
Alphabet Inc. Price and EPS Surprise
Alphabet Inc. price-eps-surprise | Alphabet Inc. Quote
Texas Instruments is scheduled to report its second-quarter 2026 results on July 22. The company has an Earnings ESP of +2.16% and a Zacks Rank #1.
Texas Instruments’ second-quarter performance is likely to have benefited from strong demand for its analog and embedded chips. The company’s analog business remains the largest contributor, which is showing renewed strength supported by improving industrial demand, stronger data center investments and stable automotive sales.
Texas Instruments is benefiting from rising demand for power-management chips used in AI-driven data center infrastructure. Gradually improving end-market demand and easing customer inventory adjustments are likely to have aided growth in the embedded processing business during the second quarter.
The Zacks Consensus Estimate for earnings has increased by a penny to $1.91 per share over the past month and suggests 35.46% growth over the figure reported in the year-ago quarter.
Texas Instruments Incorporated Price and EPS Surprise
Texas Instruments Incorporated price-eps-surprise | Texas Instruments Incorporated Quote
Amphenol has an Earnings ESP of +1.12% and currently sports a Zacks Rank #1.
The company is expected to have benefited from continued AI data center spending. AI-related products were the primary contributor to sequential organic growth in the first quarter of 2026, and demand remains robust. Amphenol expects another sequential increase in IT datacom revenues, driven by AI infrastructure investments.
In the first quarter of 2026, quarterly orders of $9.4 billion produced a 1.24X book-to-bill, with every end market posting a book-to-bill above one, providing strong visibility into future shipments. The acquisition of CommScope broadens Amphenol's high-speed copper, fiber optic and power interconnect offerings, strengthening its position in AI data centers and communications infrastructure. APH expects high-single-digit sequential growth in industrial and defense markets, supported by automation, building connectivity and rising defense spending.
The Zacks Consensus Estimate for earnings has increased 3 cents to $1.19 per share over the past month. The company is scheduled to report second-quarter 2026 results on July 29.
Amphenol Corporation Price and EPS Surprise
Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote
Lam Research is set to report fourth-quarter fiscal 2026 results on July 29. The company has an Earnings ESP of +1.38% and a Zacks Rank #1.
Lam Research is expected to have benefited from AI-driven wafer fab equipment (WFE) spending in the to be reported quarter. LRCX expects AI to continue driving demand across leading-edge logic, DRAM, NAND and advanced packaging, with WFE demand remaining supply-constrained by clean-room availability rather than end demand. Increasing adoption of Gate-All-Around, backside power, HBM, 3D DRAM and advanced packaging is expanding Lam Research’s served market and boosting equipment intensity. These factors are expected to have benefited LRCX’s fiscal fourth quarter results.
The consensus estimate for LRCX’s earnings has increased by a penny to $1.69 per share over the past 30 days and indicates 27.07% growth over the figure reported in the year-ago quarter.
Lam Research Corporation Price and EPS Surprise
Lam Research Corporation price-eps-surprise | Lam Research Corporation Quote
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Texas Instruments Incorporated (TXN): Free Stock Analysis Report
Amphenol Corporation (APH): Free Stock Analysis Report
Lam Research Corporation (LRCX): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).