If there is one area of technology that always warrants attention, it is the huge demand for latency, cloud storage and computing, video streaming and all of the other broadband dependent networking needs. With 100G data center switching and optical, and a host of other application demanding attention, the top vendors in the space are poised to do well as the web 2.0, telecom and cable companies ramp up spending to keep up with demand.

In a new research report from Deutsche Bank, the focus is on four top companies that are highly levered to the new product cycles and the information technology spending trends at the top providers. All four are rated Buy, and make good sense for long-term tech investors that can see the increased demand and spending.

Akamai Technologies

This company posted very solid first-quarter results this week and the stock has rallied back nicely from multiyear lows hit recently. Akamai Technologies Inc. (NASDAQ: AKAM) is the self-described global leader in content delivery network (CDN) services, Akamai makes the internet fast, reliable and secure for its customers.

The company’s advanced web performance, mobile performance, cloud security and media delivery solutions are revolutionizing how businesses optimize consumer, enterprise and entertainment experiences for any device, anywhere. The Deutsche Bank team has made the company one of their top large cap ideas for 2016.

The Deutsche Bank analysts point to huge financial opportunity what they term over the top linear and on-demand TV as the media companies generate the next 10% of internet video traffic. They point out this is above and beyond the 37% of internet traffic volumes generated by Netflix. They also note that the company has about 3500 media customers on its Global Media Delivery Platform, with $350,000 active server pages per customer.

The Deutsche Bank price target for the stock is $75, and the Thomson/First Call consensus price target is $61.10. The shares closed Tuesday at $52.66 apiece.

Arista Networks

This company went public in the summer of 2014 and has continued to be one of the hot tech stories of the past couple of years. Arista Networks Inc. (NYSE: ANET) delivers software-driven cloud networking solutions for large data center and computing environments. In addition, the company’s 10/40/100 gigabit Ethernet switches offer scalability and performance, and the company has more than 2,700 customers and more than 2 million cloud networking ports deployed worldwide. At the core of Arista’s platform is EOS, an advanced network operating system. Arista Networks products are available worldwide through distribution partners, systems integrators and resellers.

Many on Wall Street think that the company could benefit from dual supplier requirements at the web 2.0 and cloud portals and think Arista could see upside to the lofty 30% compound annual growth rates currently forecast. The Deutsche Bank analysts see the stock benefiting as a networking vendor that is leveraged to data center deployments.

Deutsche Bank has an $80 price target for the stock, while the consensus estimate is essentially in line at $80.53. Shares closed most recently at $66.
Cisco

This is one of the top mega-cap technology stock picks on Wall Street and perhaps a surprising defensive pick for volatile markets like we have witnessed. Cisco Systems Inc. (NASDAQ: CSCO) posted blowout earnings in February, and many on Wall Street have raised their price targets for the networking giant significantly. Cisco is also one of the 24/7 Wall St. top 10 stocks to own for the next decade, and the company will report fiscal third-quarter numbers in May.

Cisco won an important contract for the Verizon build-out of the company’s next-generation 100G metro network. While Cisco’s optical business is small as a part of total revenue, this win is seen by Wall Street as a significant endorsement of the investments Cisco has been making into its optics business. The stock is a top large cap idea at Deutsche Bank, which sees the company well positioned for data center, switching software, switches and routers.

Analysts across Wall Street point to an estimated double-digit bookings momentum for Cisco’s Meraki Cloud Services. Many think that Meraki is likely to be a $1 billion plus run-rate business this year, with an incredible 50% to 70% compounded annual growth rate. A jump from 40 GE to 100 GE data center switching and next generation security are also adding to the total sales profile and product mix.

Cisco investors are paid a very solid 3.65% dividend. The $33 Deutsche Bank price target is higher than the consensus target of $29.37. The shares closed most recently at $28.45.

CommScope

This is another top play for investors that may be somewhat more under the radar. CommScope Holding Co. Inc. (NASDAQ: COMM) provides connectivity and infrastructure solutions for wireless, business enterprise and residential broadband networks in the United States, Europe, the Middle East, Africa, the Asia Pacific, Central and Latin America and Canada.

The company operates in three segments: Wireless, Enterprise and Broadband. Its network infrastructure solutions help customers increase bandwidth, maximize existing capacity, improve network performance and availability, increase energy efficiency and simplify technology migration.

The analysts feel that the company will benefit from the low teens spending growth in data center optical connectivity, and trading at 9.8 times estimated 2017 earnings, the stock is also very cheap. While the company reported fourth-quarter sales that were up 38% year over year, the rest of the report was pretty much in line with expectations, and first-quarter earnings are expected to be posted Thursday.

The Deutsche Bank price target for the stock is $33, and the consensus target is set at $30.71. The stock closed on Thursday at $26.88 per share.

This huge spending growth could continue for years to come as demand across all of the sector grows. These top stocks to buy are more suitable for aggressive growth accounts that can tolerate a degree of volatility.

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