As investors scrutinize earnings reports from artificial intelligence companies amid questions about spending sustainability, top Wall Street analysts are pointing to three stocks with particularly compelling long-term growth trajectories.
According to TipRanks, a platform that ranks analysts based on historical performance, Bank of America, JPMorgan, and Oppenheimer analysts have identified Palantir Technologies, Amazon, and Lam Research as stocks with attractive prospects backed by recent quarterly results and expanding market opportunities.
Palantir’s U.S. Commercial Business Drives Upgrade
Palantir Technologies caught analyst attention after reporting better-than-expected second-quarter results and raising its full-year guidance. The company now expects its U.S. commercial business revenue to grow by at least 134%.
Bank of America analyst Mariana Perez Mora maintained a buy rating on the stock with a price target of $255, crediting the company’s AI strategy focused on delivering appropriate infrastructure to customers. Mora emphasized that Palantir’s main growth driver remains its U.S. commercial business, which now represents almost 40% of total revenue compared to 30% a year ago and just 20% two years prior.
The analyst noted that Palantir’s U.S. commercial business grew 149% in the second quarter of 2026, while the U.S. commercial customer count increased 35% year-over-year to 653. Trailing twelve-month revenue per customer surged 76% to $3.5 million in the quarter, reflecting deeper client engagement.
Based on strength across both commercial and government segments, Mora raised her sales and earnings per share estimates for 2026 through 2028. Mora ranks No. 444 among more than 12,400 analysts tracked by TipRanks, with her ratings profitable 57% of the time and delivering an average return of 32.6%.
Amazon Web Services Accelerates to Fastest Growth Since 2021
Amazon impressed investors with second-quarter results that showed its Amazon Web Services cloud business revenue jumping 37%, marking the unit’s fastest growth since 2021.
JPMorgan analyst Doug Anmuth maintained a buy rating and raised his price target to $365 from $330, calling Amazon the firm’s Best Idea. Anmuth highlighted that the company’s forex-neutral top-line growth accelerated to 20% in the second quarter, the fastest pace in 20 quarters, driven by acceleration across both AWS and retail stores.
The analyst pointed to AWS backlog nearly tripling year-over-year and rising 36% sequentially to $496 billion, fueled by robust demand across core workloads and AI adoption. Anmuth observed particular strength in AWS’s AI and chips businesses, Graviton revenue commitments, and the core business.
Importantly, Anmuth believes the core AWS business is highly correlated to AI revenue, and he expects this relationship to strengthen as more AI workloads move into full-scale production. The analyst raised his 2026 and 2027 sales estimates by approximately 1% to 2% and operating income estimates by roughly 5% to 7%.
Anmuth noted that management emphasized the compelling return on invested capital from AI investments and clear visibility to strong financial returns. He ranks No. 717 among analysts tracked by TipRanks, with successful ratings 58% of the time and an average return of 10.5%.
Lam Research Poised for ‘Extraordinary’ 2027
Semiconductor manufacturing equipment supplier Lam Research delivered better-than-anticipated fiscal fourth-quarter results, driven by AI-related demand.
Oppenheimer analyst Edward Yang reaffirmed a buy rating with a $400 price target, stating that Lam Research exceeded June-quarter expectations despite high expectations. Yang cited strong performance from the Customer Support Business Group, NAND revenue doubling from the prior quarter, and improved gross margin.
The analyst highlighted that Lam Research’s September-quarter revenue and earnings per share outlook exceeded Street expectations by mid-teens percentages. The company also increased its wafer fabrication equipment spending outlook to the low-$150 billion range, up from its prior $140 billion estimate.
Yang noted that Lam Research characterized calendar year 2027 as “extraordinary,” citing persistent supply shortages and the addition of 8 to 10 new fabrication plants. He raised his 2027 revenue and earnings per share estimates by 7% and 9% to $33 billion and $8.88, respectively, and increased his 2028 estimates by 7% and 8% to $36.6 billion and $9.89, respectively.
Yang called the stock “the cleanest way to play AI-driven 3D scaling across memory, foundry/logic, and packaging.” He ranks No. 256 among TipRanks analysts, with profitable ratings 71% of the time and an average return of 56.4%.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/09/top-analysts-like-these-3-stocks-for-their-solid-growth-potential.html
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