Investors are keeping a close eye on AI-related companies as concerns grow over whether elevated spending and demand can be sustained. While quarterly results offer an important snapshot of performance, top Wall Street analysts are also looking at the longer-term opportunities behind the numbers.
According to TipRanks, three stocks currently stand out among companies backed by highly rated analysts.
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Palantir Technologies
Palantir reported better-than-expected second-quarter results and raised its full-year outlook, with U.S. commercial revenue now expected to grow by at least 134%.
Bank of America analyst Mariana Perez Mora maintained a buy rating and a $255 price target. She pointed to the continued strength of Palantir’s U.S. commercial business, which grew 149% year over year in the second quarter and now accounts for nearly 40% of the company’s total revenue.
The customer base is expanding as well. Palantir’s number of U.S. commercial customers rose 35% to 653, while trailing 12-month revenue per customer increased 76% to $3.5 million.
Based on this momentum across both commercial and government operations, Mora raised her 2026-2028 revenue and earnings estimates.
Amazon
Amazon’s second-quarter results also showed strong momentum, particularly in its cloud business. AWS revenue climbed 37% year over year, marking its fastest growth since 2021.
JPMorgan analyst Doug Anmuth maintained a buy rating while raising his price target to $365 from $330. He noted that Amazon’s overall growth accelerated across both AWS and its retail operations.
AWS backlog nearly doubled and a half year over year to $496 billion, reflecting strong demand for traditional cloud services as well as AI infrastructure. Anmuth expects this connection to become even stronger as more AI workloads move into full-scale production.
Following the results, he raised his 2026 and 2027 sales estimates and expects operating income to be higher as well.
Lam Research
Semiconductor equipment maker Lam Research delivered better-than-expected fiscal fourth-quarter results, helped by continued demand linked to AI.
Oppenheimer analyst Edward Yang maintained a buy rating and a $400 price target. He highlighted strong performance in Lam’s Customer Support Business Group, along with NAND revenue that doubled from the previous quarter.
Lam also raised its outlook for wafer fabrication equipment spending to the low-$150 billion range, up from its previous estimate of $140 billion.
Looking further ahead, Yang expects 2027 to be an especially strong year for the company, pointing to persistent supply constraints and plans for eight to 10 new fabrication plants. He subsequently raised his 2027 and 2028 revenue and earnings estimates, viewing Lam Research as a strong way to benefit from AI-driven expansion across memory, foundry, logic and advanced packaging.
