<div id="readability-page-1">What began as a geopolitical shock has, somewhat surprisingly, faded into background noise. After an initial bout of panic surrounding the Iran conflict, Wall Street regained its footing and then kept climbing, with the S&amp;P 500 and Nasdaq returning to record territory while the Dow sits within striking distance of its own highs. Markets appear convinced that, barring another sudden escalation, the broader economic engine remains intact.<h3>Claim 55% Off TipRanks</h3><ul><li>Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions </li><li> Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks </li></ul> That confidence has been supported by a combination of resilient corporate earnings, ongoing economic expansion, and the relentless pace of AI-related investment across the technology sector. Investors have largely shifted their focus back toward quarterly results, hyperscaler spending, and the broader AI buildout rather than daily developments from the Middle East. Meanwhile, falling oil prices tied to cease-fire expectations have also helped calm inflation worries. At the same time, the war has still left fingerprints on global trade and energy flows. Shipping routes and export patterns are being reworked as companies attempt to reduce exposure to the Strait of Hormuz, while U.S. energy exports gain greater importance amid the disruption. Although tensions between President Trump and the Iranian leadership still inject uncertainty into the picture, the cease-fire appears to have enough momentum to avoid a broader economic shock, especially if oil prices keep easing from their wartime highs. The chief investment office at UBS has been watching the situation closely and says of current developments: &#34;We think there is room for US equities to move higher by the end of the year, and big tech results last week confirmed sustained AI demand. But with the situation in the Middle East still fluid, and amid intensifying competition among AI participants and applications, we believe the next phase of market gains is likely to be characterized by a broadening of leadership beyond the megacaps.&#34; Against this backdrop, some of the bank's top analysts are picking out stocks across a wide range of sectors and investment themes. Their choices include both companies positioned to benefit from continued market strength and names that could hold up well if conditions become more volatile. We opened the TipRanks database to take a closer look at two of their choices. Ultra Clean Holdings (UCTT) AI may have become the semiconductor industry's biggest growth engine, but the companies enabling chip production behind the scenes are becoming just as essential. One of those names is Ultra Clean Holdings, a supplier deeply embedded across the semiconductor manufacturing chain. Rather than designing chips itself, Ultra Clean provides the highly specialized components, subsystems, cleaning solutions, and precision manufacturing services needed to keep advanced wafer fabrication running smoothly. Its offerings span everything from prototyping support to high-precision production tools, while its cleaning and coating services play a critical role in maintaining the ultra-sensitive environments required for semiconductor manufacturing. Ultra Clean's products and services have found application beyond the chip industry. The whole ecosystem of high-tech digital devices – used in everything from smart homes to autonomous vehicles to industrial infrastructure – depends on exacting standards in manufacture, the exact niche where Ultra Clean operates. And investors have taken notice, to say the least. Shares of Ultra Clean have surged 215% this year amid rising demand for silicon chips and AI data center hardware, creating a strong backdrop across the broader semiconductor supply chain. In its last financial release, covering 1Q26, Ultra Clean reported total revenues of $533.7 million, up 3% year-over-year and $8.4 million better than had been anticipated. The revenue total included $68 million from Services and $465.7 million from Product sales. At the bottom line, UCTT's earnings, reported as a non-GAAP EPS of $0.31, were up from $0.23 in the first quarter of last year, and beat the forecast by a nickel per share. UBS analyst Timothy Arcuri, who is rated by TipRanks as #2 among more than 12,000 Wall Street analysts, sees the company in a sound position, noting: &#34;The company's ~60% revenue exposure to LRCX and AMAT positions it squarely in the sweet spot of a capacity driven WFE upcycle – arguably, the most significant the industry has seen in 20+ years. This is precisely when, we think, investors should seek exposure to the semicap supply chain, particularly as estimate revisions have yet to fully materialize and the magnitude of the upcycle (and the revisions) remains underappreciated by many investors. We see WFE growth of &gt;20% Y/Y across C2026/2027 subsequently driving our modeled EPS to be +53%/+124% above Street estimates in the same period.&#34; Looking ahead, the top-rated analyst puts a Buy rating on UCTT, along with a $130 price target that points to a one-year gain of 63% for the stock. (To watch Arcuri's track record, click here) Overall, UCTT has 5 recent analyst reviews on record, and they are all positive – giving the stock its unanimous Strong Buy consensus rating. The shares are currently trading for $79.90 and their $104.40 average target price implies an upside of ~31% for the next 12 months. (See UCTT stock forecast) </div>

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UBS analysts suggest two stocks to buy as the market rally continues, driven by resilient corporate earnings and AI investments. They highlight Ultra Clean Holdings (UCTT), a key player in semiconductor manufacturing, which has seen a 215% share price increase this year. UCTT reported a revenue of $533.7 million in Q1 2026, exceeding expectations. UBS believes US equities have room to grow, with a shift in market leadership beyond major tech companies, despite ongoing geopolitical tensions.

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'More Room to Run': UBS Suggests 2 Stocks to Buy as the Market Rally Pushes Higher