J.P. Morgan Sounds the Bullhorn for These 2 Tech Stocks

AI-related jitters have crept into the market lately, with worries about overextended valuations and whether the huge spending behind AI will ultimately generate returns that justify the hype, prompting a bumpier tone in tech trading. Ultimately, the broader indexes haven’t fallen much, but day-to-day swings have picked up as investors debate whether parts of the AI trade moved too far, too fast. Recent pullbacks in several high-profile AI names have added to the unease, feeding talk of a potential bubble and keeping sentiment on edge as the year winds down.

Still, some of the biggest AI infrastructure names continue to post strong results, forcing investors to reassess whether this is an overreaction or simply growing pains in a long-term transformation.

A broad market analysis from J.P. Morgan Wealth Management captures the moment clearly: “Despite persistent skepticism, the fundamentals behind AI infrastructure and innovation remain strong. Nvidia and Google’s results reinforce the sector’s staying power, but investors should remain mindful of ongoing questions about profitability and sustainability as the market continues to evolve… Disciplined investing is crucial to avoid speculative risks.”

And discipline is exactly the stance JPM’s analysts are taking. Building on that view, they’re calling out two tech stocks they see as well-positioned from here. We’ve used the TipRanks data to see what’s driving that conviction. Let’s dive in.

Marvell Technology (MRVL)

We’ll start in the world of semiconductor chips, data centers, and networking tech, with Marvell Technology. This company is considered a mid-tier player in the digital infrastructure industry, operating on a far smaller scale than the multi-trillion-dollar giants like Nvidia and Broadcom, but even so, Marvell still boasts a market cap of $72 billion and generated $5.77 billion in revenue in its fiscal year 2025.

In Marvell’s core business, the company is known for producing high-quality, custom XPUs, CPUs, and DPUs – all essential components of high-end AI- and cloud-computing data center tech. These are complemented by a range of Ethernet and data center switches, and electrical and optical connectivity devices capable of connecting racks, rows, and servers at all scales.

Marvell also produces network and connectivity solutions at enterprise scale, the very tech needed to keep businesses connected to the digital world. The company’s enterprise connectivity solutions are designed to enable mobility and cloud computing, promoting the idea of a ‘borderless campus,’ a connected business that is not confined by the limits of a brick-and-mortar presence.

Along with all of this, Marvell also provides the hardware needed to connect 5G radio access networks to the cloud, marrying the latest in networking and computing tech. Marvell has solutions for baseband, compute, networking, and security, all allowing carriers to provide the scalability and performance that users need. In short, Marvell has made itself indispensable in building the infrastructure of the AI world.

Marvell’s last set of quarterly results, covering fiscal 2Q26, were released back in August; in that release, the company reported quarterly revenues of $2 billion. This figure was up an impressive 57.5% year-over-year, although it just missed the forecasters’ estimates by $10 million. At the bottom line, Marvell reported a non-GAAP EPS of 67 cents; this was in line with the forecasts.

This company’s momentum, and its exposure to multiple growth areas in AI and cloud computing, have JPM’s Harlan Sur taking a bullish stance. The 5-star analyst, rated among the top 1% of his peers by TipRanks, writes of Marvell, “Recent commentary from cloud/hyperscaler Amazon, along with positive commentary/earnings guidance from test specialist Teradyne, leaves us incrementally more confident about the near-term outlook for Marvell and the team’s growth prospects in both its ASIC and optical businesses for 2026… These developments reinforce both our and Marvell management’s positive view of the Trainium program (Trainium 2 and 3). The numerous other XPU deployment announcements—beneficial for Marvell’s optical segment— should drive a strong finish to CY25 and support solid growth in 2026 as well.”

Sur’s comments lend support to his Overweight (i.e., Buy) rating on the stock, while his $120 price target implies that the shares will gain 44% over the next year. (To watch Sur’s track record, click here)

This stock has a Moderate Buy consensus rating on the Street, based on 32 reviews that include 23 Buys and 9 Holds. The shares are currently priced at $83.43 and the $93.23 average price target implies about 12% upside from current levels. (See MRVL stock forecast)

Flex, Ltd. (FLEX)

The next stock we’ll look at is Flex, Ltd, a tech stock that focuses on electronics manufacturing services and original design manufacturing. While these may not be part of our everyday experience, they are vital fields in a wide range of technological applications – and Flex is a major player in this realm. The company has a market cap of $21 billion and has been in business since 1969 – and maintains dual headquarters in Singapore and in Austin, Texas.

Flex’s product lines include a wide range of essential devices, ranging from busways, switchgear, modular enclosures, and power management systems necessary to maintain reliable power distributions that meet difficult technical specifications, to embedded power products and liquid cooling systems. The company also designs and builds full lines of standard electrical and electronic components, along with custom components to fit the users’ exact needs. These can include lines of capacitors, inductors, antennas, resistors, semiconductors – and that’s only a small part of the list.

Products are only part of what Flex offers its customers. The company prides itself on its ability to work with its customers and end users to design and engineer the perfect tech solution, to deliver optimum performance on an accelerated time scale. This is supported by a global supply chain, advanced manufacturing skill, and solid logistics expertise. And finally, Flex provides aftermarket services, whether they are needed to support products or to reverse engineer new solutions.

This kind of expertise – in design, engineering, manufacturing, and delivery – is hardly limited to any one application, and Flex works with customers in a wide range of industries. The company has its hands in the automotive field, cloud computing, high-end networking, healthcare, data centers, and heavy industry – and again, this is only a partial list. Flex is one of the many unsung tech companies that support the headline grabbers of the modern economy.

Looking at the company’s financial results, we see that Flex reported fiscal 2Q26 at the end of October. The company’s revenue came to $6.8 billion, $90 million better than expected and up 3.8% year-over-year. Flex’s bottom-line figure, the non-GAAP EPS of 79 cents, came in 3 cents per share better than had been anticipated. The company reported a quarterly free cash flow of $305 million and finished fiscal Q2 with cash and other liquid assets totaling $2.25 billion.

Samik Chatterjee, another of JPM’s top-rated tech experts, notes two key points about Flex. First, he discusses the company’s strong industry position and its potential for growth, saying, “Flex followed other AI infrastructure suppliers in raising its outlook for the year led by stronger investment plans from customers. The company raised its outlook for the year, and more importantly raised the outlook to a greater magnitude for the second half of its fiscal year relative to beat in F2Q… The company outlined optimism in relation to Datacenter revenue growth outlook aided by the pipeline of opportunities ranging across hyperscalers, including Amazon, Co-los, and Neo-Clouds.”

Chatterjee follows up with his summary of Flex’s potential to keep bringing in returns, adding about the company, “We are raising our revenue and earnings forecasts for the year, which now implies mid-single digit growth for FY25, but the increasing mix of AI revenues and improvement in end-market trends across Healthcare, Optical, SatCom, in conjunction with stabilization in Autos, raises our confidence in revenue growth closer to high-single digits in the coming years. The earnings drivers remain favorable when incorporating margin expansion from better mix as well as a robust pace of buybacks, and support our expectations for share price upside…”

Chatterjee puts an Overweight (i.e., Buy) rating on Flex’s shares, and he complements that with a $75 price target, suggesting a one-year upside potential of 31%. (To watch Chatterjee’s track record, click here)

This tech stock gets a unanimous Strong Buy consensus rating, based on 7 positive analyst reviews. The shares are currently trading at $57.35, and their $76.57 average price target implies that the stock will gain 33.5% on the one-year horizon. (See FLEX stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.