Micron Technology (MU), CommScope (COMM), and Seagate (STX) are top quant strong buys in the AI sector, exhibiting sector-leading fundamentals and attractive valuations. MU trades at a 50% PE discount to sector peers with 36% forward revenue and 191% EPS growth, while analyst revisions remain overwhelmingly positive.
COMM's 251.5% six-month surge is fueled by booming ANS sales, RUCKUS demand and major portfolio moves.
The greatest beneficiaries of a Santa rally tend to be the year's dominant themes. December seasonality gives investors another timely opening to lean into three stocks that focus on the market's strongest theme of 2025 – AI infrastructure boom. The economic backdrop consists of moderating growth combined with softening data supporting lower interest rates and the potential for strong seasonal returns.
| Communications Equipment Industry | Information Technology Sector | Charles L. Treadway CEO | XSTU Exchange | US20337X1090 ISIN |
| US Country | 20,000 Employees | - Last Dividend | 27 Dec 2018 Last Split | 25 Oct 2013 IPO Date |
CommScope Holding Company, Inc. stands as a pivotal provider of infrastructure solutions tailored for a vast array of networks, ranging from communications and data centers to entertainment on a global scale. Since its inception in 1976, the company has evolved, previously known as Cedar I Holding Company, Inc., until its rebranding in January 2011. Based in Claremont, North Carolina, CommScope delivers its extensive portfolio through various segments, including Connectivity and Cable Solutions (CCS); Outdoor Wireless Networks (OWN); Networking, Intelligent Cellular and Security Solutions (NICS), and Access Network Solutions (ANS). These segments cater to the diverse needs of telecommunications, cable television, and broadband networks among business enterprises, leveraging both direct sales and a network of independent distributors, specialized resellers, and system integrators.
This segment caters to indoor and outdoor network applications. It encompasses a comprehensive range of network solutions that facilitate optimal connectivity. This includes fiber optic and copper connectivity alongside cable solutions. Primarily, these products serve telecommunications networks, cable television, residential broadband, data centers, and various business enterprises, ensuring high-speed and reliable connectivity.
OWN specializes in infrastructure for outdoor wireless networking. It offers base station antennas, radio frequency filters, and other critical components like tower connectivity, microwave antennas, and metro cell products. Furthermore, it provides cabinets, steel towers, accessories, and Comsearch products, facilitating wireless spectrum management. This segment plays a crucial role in expanding and enhancing wireless service providers' capability to deliver broad coverage and high-capacity networks.
NICS focuses on delivering solutions for both indoor and outdoor Wi-Fi, alongside LTE access points. It also includes access and aggregation switches, an Internet of Things suite, and comprehensive control and management systems that can be deployed on-premises or cloud-based. Additionally, NICS offers software and Software-as-a-Service applications, addressing the growing need for advanced, secure, and scalable network infrastructure capable of supporting the internet of things and cloud computing.
ANS is dedicated to facilitating service providers in building state-of-the-art residential and metro distribution networks. This segment's offerings include cable modem termination systems, video infrastructure, distribution and transmission equipment, and cloud solutions. These products and services enable the construction of sophisticated networks that support the delivery of high-speed internet, video, voice, and other advanced services directly to customers' premises and metropolitan areas.