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Current Market Status: The S&P 500 (SPX) has recently entered a modest corrective phase after reaching all-time highs, closing below the first support level of 6,750.

Support Levels: The index has closed gaps from late October and is currently testing the 6,500 to 6,550 support range, which has held previously; a break below this level could indicate a more bearish trend.

Stock Highlights: Zacks.com features stocks like Amphenol Corp., Western Digital Corp., Vertiv Holdings Co., Corning Inc., and TE Connectivity plc, all of which are positioned for growth in the AI and cloud computing sectors.

AI Infrastructure Investment: Four major tech companies are set to invest $380 billion in AI infrastructure in 2025, reflecting a 54% increase in capital expenditure, with expectations for further growth in 2026.

Company Performance: Amphenol is leading in AI-powered data center interconnects, while Western Digital is experiencing strong demand for high-capacity storage solutions driven by AI. Vertiv is expanding its capabilities to meet data center needs, and Corning is focusing on innovative optical connectivity products.

Growth Projections: Each highlighted company has promising revenue and earnings growth rates for the upcoming year, with Zacks Consensus Estimates showing positive trends in earnings improvements across the board.

MACOM Technology Earnings Report: MACOM Technology Solutions Holdings, Inc. reported fourth-quarter fiscal 2025 earnings of 94 cents per share, exceeding estimates and showing a 28.8% year-over-year growth, with revenues of $261.2 million, up 32.3% year-over-year.

Financial Performance Metrics: The company's adjusted gross margin was 57.1%, with adjusted operating income rising to $67 million. Non-GAAP operating expenses increased by 24.6% year-over-year, but as a percentage of revenues, they decreased.

Future Revenue Projections: For the first quarter of fiscal 2026, MACOM expects revenues between $265 million and $273 million, with adjusted earnings per share anticipated between 98 cents and $1.02, both indicating significant year-over-year growth.

Stock Recommendations: Other stocks in the technology sector, such as Reddit Inc., Credo Technology Group, and Amphenol, have shown strong earnings revisions and year-to-date performance, with some analysts highlighting a satellite-based communications firm as a top investment pick.