Bullish Wall Street Analysts Name Palantir, Amazon, Lam Research Top AI Picks
Top analysts at Bank of America, JPMorgan, and Oppenheimer have identified three AI stocks they believe are well-positioned for further gains. Their bullish outlook reflects expectations that AI investment will remain strong despite concerns about valuations and spending sustainability.
The picks include Palantir Technologies, Amazon, and Lam Research, which span different parts of the AI ecosystem. Palantir's commercial business continues to accelerate with a 149% year-over-year increase in US revenue, driven by customers seeking measurable returns from AI deployments. Bank of America analyst Mariana Perez Mora reiterated a Buy rating on Palantir with a $255 price target, implying a 48% climb above current levels.
JPMorgan analyst Doug Anmuth raised Amazon's price target to $365 from $330 while maintaining a Buy rating and naming the stock a Best Idea. Amazon Web Services delivered 37% revenue growth during the second quarter, its fastest expansion in 18 quarters, driven by growing AI workloads and demand for core cloud services.
Lam Research could benefit from the next AI chip expansion as it supplies manufacturing equipment needed to produce increasingly complex AI chips. Oppenheimer analyst Edward Yang maintained a Buy rating on Lam Research with a $400 price target after the semiconductor equipment maker beat fiscal fourth-quarter expectations.