With stocks on track for yet another positive month, we are spotlighting several names that look poised to gain momentum over the next 12 months. September has historically been a tough month for stocks, with the S&P 500 averaging a loss of 0.7% since 1950. However, this September has bucked the trend, with the broad market index rising more than 1% month-to-date. The Nasdaq Composite and Dow Jones Industrial Average have also seen gains, advancing 2% and nearly 1%, respectively.
This comes after all three major averages bounced back from the August 5 global sell-off to close out last month higher, marking the fourth consecutive winning month for the S&P 500. With just one trading session remaining in September, here are our stock picks to watch as we head into October.
ASML Holding (NASDAQ: ASML) Tech Giant with Strong Upside Potential
ASML, a leader in high-tech machinery for chip manufacturing, is a standout stock that’s currently “on sale.” The stock is down roughly 20% to 25% from its highs, presenting a buying opportunity in a company that sits at the heart of the global tech trade. ASML’s advanced lithography machines are critical for the world’s top chipmakers, making it a key player in the ongoing semiconductor boom driven by AI and advanced computing.
Year-to-date, ASML’s shares are up about 5.1%, but analysts see much more room to run. The stock has a consensus price target of $1,170, suggesting a potential upside of 46.2% from current levels. Out of 38 analysts covering ASML, 29 have a buy or overweight rating, highlighting strong market confidence in the company’s growth prospects.
With its cutting-edge technology and strategic position in the semiconductor industry, ASML is well-poised to benefit as AI continues to transform businesses worldwide. The current dip offers a great entry point for investors looking to gain exposure to a tech stock that’s essential to the future of chip manufacturing. If you’re looking for a tech name that combines innovation with a significant upside, ASML is one to keep on your radar.
Motorola Solutions (NYSE: MSI) A Reliable Tech Play with Steady Growth Potential
Motorola Solutions may not have the flash of some high-flying tech stocks, but it’s proving to be a steady performer that deserves a closer look. The stock has climbed 41.1% year-to-date, thanks largely to the company’s core strength in Land Mobile Radio (LMR) devices—essential communication tools used in critical and emergency situations. This segment alone accounts for about 70% of Motorola’s business, providing a stable revenue base that’s less susceptible to economic swings.
One key growth driver for Motorola is the ongoing upgrade cycle to its new APX device, which is adding a nice boost to the company’s already solid performance. Unlike more volatile tech names, Motorola consistently delivers reliable results, making it a compelling choice for investors who appreciate steady, compounding growth. This is a company that might not grab headlines with huge earnings surprises, but it consistently executes well, meeting or beating market expectations quarter after quarter.
The stock is currently well-regarded among analysts, with 10 out of 15 rating it as a buy or overweight. The average price target stands at $449.63, suggesting a modest 1.8% upside from current levels, but the real appeal here is in Motorola’s ability to provide long-term value. For investors seeking a dependable tech name that quietly delivers, Motorola Solutions offers a strong combination of stability and growth.
Digital Realty Trust (NYSE: DLR) Riding the AI Data Center Wave with Strong Upside Potential
Digital Realty Trust is emerging as a key play in the AI-driven data center space, making it a standout stock as we enter the fourth quarter. The company’s robust fundamentals are being fueled by strong demand from hyperscalers—large tech firms like Amazon, Google, and Microsoft—that rely on cutting-edge data centers to power their AI and cloud operations. With tight power supply and high barriers to entry in new data center projects, Digital Realty is well-positioned to capture this demand.
The stock has already climbed 22% this year, reflecting market confidence in its growth trajectory. Analysts are also taking notice, with Goldman Sachs recently reaffirming its bullish stance. Analyst James Schneider raised his price target for Digital Realty by $10 to $185, indicating more than 13% upside from current levels. Schneider highlights that investors are particularly optimistic about the company’s leasing and pricing metrics heading into the third quarter earnings report.
Key drivers for Digital Realty include the sustainability of strong AI-related demand and favorable pricing trends. The company’s ability to meet high investor expectations in upcoming earnings could provide further upside, especially if management offers positive guidance on future joint ventures or additional capital expenditures. While the broader data center group benefits from ongoing investments by hyperscalers, Digital Realty’s strong positioning and continued momentum make it a top pick for investors looking to capitalize on the AI data center boom.
With robust market fundamentals and a clear growth path ahead, Digital Realty Trust is a compelling choice for those seeking exposure to the rapidly expanding AI infrastructure space.