Wall Street Bulls Bet on Growth: Analysts Eye Palantir, Amazon, and Lam Research for Strong Upside

By: Staff Writer

Amidst investor scrutiny of AI spending, top Wall Street analysts are spotlighting three companies with robust long-term growth potential, leveraging in-depth research to navigate market dynamics.

Investors are closely monitoring earnings releases of artificial intelligence companies amid concerns about the durability of high spending and demand. While quarterly results provide key insights into a company's performance and execution, it is prudent to focus on long-term prospects and look beyond short-term fluctuations.

Top Wall Street analysts can help investors pick stocks with attractive long-term prospects as their assessments are backed by in-depth research of a company's fundamentals and growth opportunities.

Here are three stocks favored by some of Wall Street's top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

Palantir Technologies

AI-powered data analytics provider Palantir Technologies is this week's first pick. The company reported market-beating second-quarter results. Moreover, Palantir raised its full-year guidance and now expects U.S. commercial business revenue to grow by at least 134%.

Following the Q2 print, Bank of America analyst Mariana Perez Mora reiterated a buy rating on PLTR stock with a price target of $255. Mora said that Palantir's performance reflects the success of its AI strategy, which focuses on delivering the right infrastructure to customers and ensuring better outcomes.

"The main driver continues to be the U.S. commercial business, which now represents almost 40% of total (vs. 30% a year ago and just 20% a couple of years back)," noted Mora.

The five-star analyst highlighted the 149% growth in Palantir's U.S. commercial business in Q2 2026 and the expansion in its customer base and engagement levels, with clients pursuing more integrated relationships. Mora noted that the 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.

Citing strength across Palantir's commercial and government segments, Mora increased her sales and earnings per share estimates for 2026-2028. The analyst attributed the increase in her estimates to the growth in the commercial business, backed by stronger total contract value in the second quarter.

Mora ranks No. 444 among more than 12,400 analysts tracked by TipRanks. Her ratings have been profitable 57% of the time, delivering an average return of 32.6%. See Palantir Insider Trading Activity on TipRanks.

Amazon

E-commerce and cloud computing giant Amazon impressed investors with its strong second-quarter results. Revenue from the company's Amazon Web Services (AWS) cloud business surged 37%, marking the unit's fastest growth since 2021.

In reaction to the Q2 2026 performance, JPMorgan analyst Doug Anmuth reiterated a buy rating on Amazon stock and raised his price target to $365 from $330, saying that it remains the firm's Best Idea. Anmuth highlighted that the company's forex-neutral top-line growth accelerated to 20% in Q2 2026, the fastest in 20 quarters. He added that the top line gained from acceleration across both AWS and stores.

The five-star analyst noted that AWS growth of 37% was the fastest in 18 quarters, with backlog jumping nearly 2.5x year-over-year and 36% sequentially to $496 billion. Amazon's backlog gained from robust demand across both core workloads and AI adoption. Anmuth also observed the strength in AWS' AI and chips businesses, Graviton revenue commitments, and AWS' core business.

Notably, Anmuth believes that the core AWS business is highly correlated to AI revenue, and he expects further strengthening of this relationship as more AI workloads move into full-scale production and fuel higher demand. Overall, the analyst is more optimistic on Amazon following Q2 results and raised his 2026 and 2027 sales estimates by about 1% to 2% and operating income by about 5% to 7%.

"Importantly, management emphasized that the [return on invested capital] on its AI investments is compelling and it has a clear line-of-sight to strong financial returns," said Anmuth.

Anmuth ranks No. 717 among more than 12,400 analysts tracked by TipRanks. His ratings have been successful 58% of the time, delivering an average return of 10.5%. See Amazon Statistics on TipRanks.

Lam Research

Moving on to Lam Research, a supplier of semiconductor manufacturing equipment and services. Thanks to AI-driven demand, the company delivered better-than-anticipated fiscal fourth quarter results.

In reaction to the solid results, Oppenheimer analyst Edward Yang reaffirmed a buy rating on LRCX stock with a price target of $400. Yang stated that Lam Research exceeded June-quarter expectations despite the high bar, driven by strong performance of the Customer Support Business Group and doubling of NAND revenue from the prior quarter. He also cited the improvement in Q4 FY26 gross margin.

The five-star analyst highlighted that Lam Research's September-quarter revenue and EPS outlook exceeded the Street's expectations by mid-teens percentages. Yang added that the company increased its wafer fabrication equipment spending outlook to the low-$150 billion range, up from its prior $140 billion estimate.

Importantly, Yang noted that Lam Research called calendar year 2027 "extraordinary," citing persistent supply shortages and the addition of 8 to 10 new fabrication plants. The analyst raised his 2027 revenue and EPS estimates by 7% and 9% to $33 billion and $8.88, respectively. Yang also increased his 2028 revenue and EPS estimates by 7% and 8% to $36.6 billion and $9.89, respectively.

"It's the cleanest way to play AI-driven 3D scaling across memory, foundry/logic, and packaging," said Yang about LRCX.

Yang ranks No. 256 among more than 12,400 analysts tracked by TipRanks. His ratings have been profitable 71% of the time, delivering an average return of 56.4%. See Lam Research Technical Analysis on TipRanks.