Meta, ServiceNow, Shopify: Deutsche Bank Recommended Nine IT Stocks for the Fourth Quarter

Analysts at Deutsche Bank have shared their top picks for technology stocks for the fourth quarter of 2026. The list includes nine companies operating in the hardware and software segments for monetizing AI agents, according to MarketWatch.

— The capacity shortage in data centers creates a tremendous market advantage for certain companies. For example, Digital Realty, a real estate investment trust that owns and develops data centers, is one of the top picks of Deutsche Bank analyst Benjamin Soff.

Digital Realty will be the main beneficiary of large-scale investments in AI by companies such as Amazon, Alphabet, Meta, and others, Soff wrote. He noted that the fund’s portfolio of future revenue, secured through contracts, reached $1.4 billion in the last quarter.

— Analysts are also focusing on the equipment used inside data centers. Lumentum, a manufacturer of optical components, is benefiting from a severe supply shortage, as demand for data center optics far outpaces production capacity, according to MarketWatch. According to analyst Gianmarco Paolo Conti, the company’s cutting-edge 200 Gbps lasers are “sold out for the foreseeable future” and cost roughly twice as much as previous-generation equipment.

— Cadence Design, a developer of software for designing electronic systems, is expanding its market share through sales to both traditional semiconductor manufacturers and non-specialized companies that are taking on chip development themselves. According to analyst Conti, the company is likely to continue posting double-digit growth rates.

— Another favorite is Entegris, a leading supplier of advanced materials for high-tech markets, including the life sciences and the semiconductor industry. About 75% of its revenue is tied to semiconductor output, notes analyst Melissa Weathers. According to her, the global expansion of chip production is likely to push the company’s sales in this segment above the previous peak of $850 million.

— In addition to hardware, Deutsche Bank has highlighted consumer and corporate platforms that are successfully monetizing artificial intelligence. The widespread popularity of Meta’s AI agent Muse may be just the beginning of a powerful product cycle, wrote analyst Benjamin Black. Black noted that the rapid, active adoption of Muse opens up direct monetization channels through subscriptions and transaction fees, while simultaneously boosting conversion rates on Meta’s key advertising platform.

— E-commerce giant Shopify is also actively adopting AI, having partnered with Meta to seamlessly integrate Muse into its platform. The company’s proprietary AI assistant, Sidekick, is an underrated catalyst that could soon pay off for investors. Analyst Bhavin Shah expects Shopify to monetize Sidekick by raising prices on key pricing plans over the coming quarters, which will help sustain revenue growth at over 20%.

— The Compass real estate platform also uses artificial intelligence to emerge from the housing market downturn with greater profitability. The company offers AI tools for working with high-end buyers, who are less sensitive to high mortgage rates. Deutsche Bank expects the volume of transactions on the Compass platform to reach approximately $940 billion in 2026.

— For investors seeking unconventional technology assets, Deutsche Bank has also highlighted media giant SiriusXM as an unexpected digital growth story. Analysts point to a new partnership with YouTube in the digital audio advertising space as an undervalued catalyst that could generate approximately $1.5 billion in revenue between 2026 and 2028. This is six times the $250 million currently factored into Wall Street’s consensus estimates.

— Deutsche Bank has also named the software company ServiceNow among its top picks. According to analyst Brad Zelnik, as enterprises adopt AI, the company is seeing growing demand for updates to its core IT Service Management platform. The company’s AI Control Tower products and cybersecurity solutions are also becoming increasingly important as enterprises seek to manage their AI agents.

This article was AI-translated and verified by a human editor