Analysts Pile on Palantir, Amazon, and Lam Research as AI Demand Surges

Wall Street analysts are recommending three stocks with solid growth potential amid concerns about AI spending and demand.

Palantir Technologies, an AI-powered data analytics provider, reported market-beating second-quarter results. The company raised its full-year guidance, expecting U.S. commercial business revenue to grow by at least 134%. Bank of America analyst Mariana Perez Mora reiterated a buy rating on PLTR stock with a price target of $255.

The main driver of Palantir's performance is the U.S. commercial business, which now represents almost 40% of total revenue, up from 20% two years ago. The company's U.S. commercial customer count increased 35% year-over-year to 653, with trailing twelve months revenue per customer surging 76% to $3.5 million in the second quarter.

Amazon, the e-commerce and cloud computing giant, also impressed investors with its strong second-quarter results. Revenue from Amazon's AWS cloud business surged 37%, marking the unit's fastest growth since 2021. JPMorgan analyst Doug Anmuth reiterated a buy rating on Amazon stock and raised his price target to $365.

Lam Research, a supplier of semiconductor manufacturing equipment and services, delivered better-than-anticipated fiscal fourth quarter results due to AI-driven demand. Oppenheimer analyst Edward Yang reaffirmed a buy rating on LRCX stock with a price target of $400.