UBS names Amazon, Palantir among 14 top tech stock picks

UBS analysts released a list of 14 highest-conviction stock picks across technology, media, and telecommunications, led by Amazon and Palantir, according to a report by MarketWatch. The team argued that the artificial-intelligence spending cycle remains in its early stages, creating opportunities in sectors levered to AI infrastructure.

Amazon is the bank’s top pick among large-cap internet companies. UBS set a $318 price target for Amazon shares, a level about 25% above current market prices. The analysts noted that Wall Street should catch up to higher-than-consensus estimates for AWS revenue as major customers prepare to deploy Trainium 2 and Trainium 3 chips through 2027.

For Texas Instruments, UBS forecasts total revenue to expand by around one-fifth, regardless of any slight slowdown in data-center expansion over the coming 12 months. The bank sees the stock rising 43% to $380, driven by an upswing in the analog chip cycle and growing data-center opportunities.

Celestica is expected to gain from the next year's rollout of OpenAI's initial proprietary silicon, a development UBS analysts link to revenue growth of at least 70%. The bank set a $430 price target, predicting 29% upside for the shares. Palantir shares trade at $177.64, while UBS maintains a $250 price target, expecting revenue to grow 88% with margins in the low-60% range. The analysts described Palantir as sitting “at the nexus of the two most powerful spending trends in software — AI and data.”