Top Wall Street analysts favor 3 tech stocks for their growth outlook

High valuations for artificial intelligence (AI) stocks were the focus of the market this week, with fears that a potential AI bubble would limit investor sentiment. But the view on Wall Street remains that some tech stocks offer strong fundamentals and are justifying their high valuations by delivering rapid, AI-driven growth.

Recommendations from top Wall Street analysts can help investors find attractive AI stocks that show strong long-term growth prospects.

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

Amazon

E-commerce and cloud computing giant Amazon (AMZN) recently impressed investors with its upbeat third-quarter results. Accelerating growth at its Amazon Web Services (AWS) cloud unit has confirmed the Street’s belief in Amazon’s expansion into AI.

Reacting to the strong third-quarter print and the recently announced deal with OpenAI, Mizuho analyst Lloyd Walmsley said Price estimate for Amazon is $315 He reiterated his buy rating from $300. TipRanks’ AI Analyst also thinks that AMZN shares are bullish, with an “outperform” rating and a $276 price target.

Walmsley said Q3 performance, the OpenAI deal and the positive outlook for Amazon’s Trainium chips make him more optimistic about AWS’s long-term growth. In fact, the 5-star analyst expects an acceleration in AWS revenue growth from 20% in Q3 to 21% in Q4 2025 and 22% in Q1 2026. AWS expects its revenue to grow 23% to $157 billion in full year 2026, followed by a 22% increase to $192 billion in 2027; That’s above the Street’s expectations of $154 billion and $185 billion for 2026 and 2027, respectively.

“We believe investors will continue to turn to AMZN shares given a valuation well below their historical range, and the positive news is likely to continue at the AWS ReInvent Conference in early December,” Walmsley said.

The analyst’s bullish investment thesis is also based on cost-of-service improvements in Amazon’s retail business, driven by automation at its fulfillment centers and an advanced logistics network.

Walmsley is ranked 103rd out of more than 10,100 analysts followed by TipRanks. It did well in the ratings 64% of the time and delivered an average return of 27.5%. Check out the Amazon Insider Trading Event on TipRanks.

Alphabet

This second stock pick owns Google and YouTube Alphabet (Google). The company reported better-than-expected results in the third quarter as AI gained solid momentum in its cloud business.

Impressed by the third quarter performance, JPMorgan analyst Doug Anmuth expressed his views The price target for Alphabet is $340 He reaffirmed his buy rating at $300. In contrast, TipRanks’ AI Analyst has a $316 price target with an “outperform” rating on GOOGL.

Anmuth emphasized that the third quarter was the first time Alphabet’s quarterly revenue exceeded $100 billion. The top-rated analyst noted Alphabet’s strong performance in the third quarter, posting double-digit growth across all major businesses.

Interestingly, Anmuth believes that third-quarter results and positive analysis of AI search formats could change investors’ views on Google’s AI search transition. While Alphabet noted the AI-driven acceleration in query growth and paid clicks, Anmuth noted that industry conversations show that paid clicks using Google’s Artificial Intelligence Overview (AIO) and Artificial Intelligence Mode (AIM) features deliver higher conversion rates.

“Overall, the AI ​​search transition is seen as the biggest risk for Google, but additional signs that AI search is more opportunity than threat will continue to turn the narrative,” Anmuth said.

The analyst is also encouraged by Google Cloud’s backlog rising to $155 billion. He argues that this figure does not include all gains from the expansion of GOOGL’s recently announced partnership with Anthropic, which points to a further increase in backlogs at the end of the fourth quarter. Overall, Anmuth is confident about Alphabet’s future and said it remains JPMorgan’s top 2 idea behind Amazon.

Anmuth is ranked #113 out of more than 10,100 analysts followed by TipRanks. Their ratings were profitable 63% of the time, with an average return of 22%. See Alphabet Ownership Structure on TipRanks.

Advanced Micro Devices

This week’s third technology giant chip manufacturer Advanced Micro Devices (AMD) delivered strong results in the third quarter of Fiscal 2025. AMD attributed its stronger earnings and revenues to its expanding computing business and fast-growing AI data center segment.

Reacting to this, Stifel analyst Ruben Roy said: Price target for AMD is $280 He reiterated his buy rating, with prices starting at $240. TipRanks’ AI Analyst has an “outperform” rating on AMD shares with a $285 price target.

Roy stated that AMD’s revenue in the third quarter was driven by strength in the company’s data center, artificial intelligence, server and PC businesses. The 5-star analyst emphasized management’s optimism that the momentum will continue in the 4th quarter of FY25; Revenue is expected to reach $9.6 billion, up 25% from the previous year. AMD expects Q4 revenue growth to be driven by strong performances in the data center, client and embedded businesses, partially offset by a double-digit decline in the gaming segment.

Interestingly, Roy believes AMD’s near-term performance will be further boosted by increased demand for server central processing units rather than data center AI graphics processing units and continued share gains in client CPUs. The analyst expects AMD’s data center AI GPU business to grow to a range of $6 billion to $6.5 billion in FY25, compared to the previous $5 billion forecast.

“Looking ahead, we continue to believe AMD is performing well as the company approaches production shipping of the MI400/450 series GPUs and the Helios rack next year,” Roy said.

The analyst is also optimistic about AMD’s recently announced deals with OpenAI and Oracle Cloud Infrastructure, saying they clarify the long-term growth outlook for its data center AI business. Roy expects AMD to hear more about its technology roadmap and total addressable market (TAM) at its Analyst Day event on November 11.

Roy is ranked #20 out of more than 10,100 analysts followed by TipRanks. Their ratings were profitable 71% of the time, with an average return of 34.4%. See AMD Stats on TipRanks.