Goldman Sachs remains selectively positive 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 AI infrastructure demand as a catalyst in 2025. “We expect demand for AI data center equipment to remain robust in 2025/26, benefiting both those who sell into hyperscalers (ANET, CSCO, JNPR) and as well as tier 2 cloud/enterprise (CSCO, DELL, HPE, SMCI, PENG),” analysts led by Micgael Ng wrote in the 53-page report. In a more cyclical part of the hardware and software sector, Goldman listed information technology distributors as an area that looks attractive. The firm expects both the PC and campus networking markets to resume growing and recover in 2025. “Despite the miss in 2024, we believe underlying drivers of a PC refresh in 2025 are still intact including the aging PC installed base, Windows 10 end-of-support and demand for AI-capable PCs,” the analysts wrote. In the note, Goldman shared its top stock picks for the space heading into 2025, as seen below: Dell Technologies has surged 53% in 2024, but Goldman believes there is still more upside ahead for the PC manufacturer. The bank’s 12-month price target of $165 is roughly 38% above where shares closed on Thursday. Similarly, Goldman is bullish on Arista Networks , up 91% this year. The bank’s $120 price target represents another 4% upside in the stock. “We are selectively positive on ANET and DELL as beneficiaries of the AI infrastructure demand because of their early market share leadership in AI servers and switching,” Goldman wrote, adding that both names should deliver strong returns going forward. Goldman also cited Penguin Solutions as an attractive stock among AI infrastructure builders. Among information technology distributors, Goldman recommended Ingram Micro and TD Synnex . “We view the IT distributors INGM and SNX, which are among the primary 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 have gained 10% this year, and Goldman’s price target of $141 implies the stock could rise abother 18% from current levels. While Ingram Micro stock has slipped 12% since its October initial public offering price of $22 per share, (Goldman was one of the three lead managers in the IPO), the bank’s $33 price target corresponds to potential upside of approximately 62%.
