Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 55th on the Fortune 500 list of the largest United States corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients. We review the firm’s Conviction List of top stock ideas monthly, seeking companies with the biggest upside potential to the Goldman Sachs posted target price objectives. For March, Goldman Sachs’ TMT (technology, media, telecommunications) sector coverage has four companies on its Conviction List of top picks, with stunning upside potential of 40% to 100% to the posted target price objectives.
The Goldman Sachs Conviction List is a curated list of stocks that the firm’s research team believes are highly likely to outperform the market. It’s a tool for investors to identify stocks with strong growth potential and is frequently updated to reflect changes in market conditions and company performance. The list aims to identify stocks where Goldman Sachs analysts have the “highest level of conviction” in their outperformance.
Why we recommend Goldman Sachs stocks
Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum. It is likely to continue doing so for years.
Here are the four TMT stocks on the March Conviction List with massive double-digit upside potential.
Broadcom
This technology giant is expected to report earnings today after the market closes, and many feel it could exceed analysts’ expectations. Broadcom (NASDAQ: AVGO) is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software, and security solutions.
The company operates through two segments. Its Semiconductor Solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a range of radio-frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications.
The Infrastructure Software segment includes:
- Private and hybrid cloud
- Application development and delivery
- Software-defined edge
- Application networking and security
- Mainframe
- Distributed and cybersecurity solutions
- FC SAN business
Broadcom provides a portfolio of software solutions that enable customers to plan, develop, automate, manage, and secure applications across mainframe, distributed, mobile, and cloud platforms.
The Goldman Sachs target price is $450, more than 40% above current levels.
Celestica
This is an exciting tech idea and offers a reasonable entry point now. Celestica (NYSE: CLS) is engaged in the design, manufacturing, and provision of hardware platform and supply chain solutions. It delivers supply chain solutions globally to customers in two operating segments.
The Advanced Technology Solutions segment comprises its Aerospace & Defense (A&D), Industrial, HealthTech, and Capital Equipment businesses. Its Capital Equipment business comprises semiconductor, display, and robotics equipment.
The Connectivity & Cloud Solutions segment consists of its communications and enterprise end markets.
The enterprise end market consists of Celestica’s servers and storage businesses. It offers a range of product manufacturing and related supply chain services to customers across both segments, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, and systems integration.
Goldman Sachs analyst had this to say about the company late last year:
Mike Ng sees the company’s strong engineering capabilities, combined with its ability to quickly and reliably scale production, as a competitive advantage over other ODM and EMS providers in supplying data center equipment. Ng expects CLS to benefit from ongoing capex growth amongst hyperscale and other large AI players, where the company has demonstrated its ability to win customer programs in cutting-edge technology (e.g., 800G and 1.6T networking switches), and gain traction over time in higher-margin ODM server business, relative to its traditional position as an EMS server player.
The $430 Goldman Sachs price target would represent a 55% gain from current levels.
DoorDash
The food and retail delivery business has continued to explode, and this is one of the top companies in the business. DoorDash (NASDAQ: DASH) provides services that reduce friction in local commerce and help merchants connect with consumers in their communities. Its primary offerings include the DoorDash Marketplace, the Wolt Marketplace, and its Commerce Platform.
Its Marketplaces operate in over 30 countries worldwide and provide an integrated suite of services that help merchants establish an online presence, connect with consumers in their communities, and solve mission-critical challenges, including customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support.
DoorDash also offers advertising as a value-added service through its Marketplaces to help merchants and consumer packaged goods companies increase consumer engagement. The company also has off-site advertising capabilities. Its white-label delivery fulfillment services include DoorDash Drive On-Demand and Wolt Drive.
The Goldman Sachs target price is $286, which is 62% above current levels.
ServiceNow
This may be the stock Goldman Sachs is most bullish on, given its massive target price. ServiceNow (NYSE: NOW) provides an artificial intelligence (AI) platform for business transformation. The Now Platform is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. It connects people, processes, data, and devices to increase productivity and maximize business outcomes.
The workflow applications built on the Now Platform are organized into four primary areas:
- Technology
- CRM, Industry
- Core Business
- Creator
ServiceNow products include:
- IT Service Management
- IT Operations Management
- HR Service Delivery
- ServiceNow AI Agents
- AI Experience
- Build Agent
- ServiceNow AI Control Tower
- AI Agent Fabric
- RaptorDB
- Workflow Data Fabric
- Workplace Service Delivery
- ServiceNow Platform Encryption
- Telecommunications Service Operations Management
The company also offers identity security, helping organizations secure access across the enterprise.
The Goldman Sachs target price is $216, a stunning 100% above current levels.
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