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

High valuations for artificial intelligence (AI) stocks have been the focus of the market this week, with fears of a possible AI bubble dampening investor sentiment. But the view on Wall Street remains that many tech stocks offer strong fundamentals and deliver rapid, AI-fueled growth, justifying their high valuations.

Recommendations from top Wall Street analysts can help investors find attractive AI stocks that display 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 in Amazon Web Services’ (AWS) cloud unit underscored the Street’s belief in Amazon’s expansion into artificial intelligence.

In response to strong third-quarter results and the recently announced deal with OpenAI, Mizuho analyst Lloyd Walmsley increased his fortune Amazon price forecast is $315 From $300 and repeat purchase rating. TipRanks’ AI analyst is also bullish on AMZN stock, with an “Outperform” rating and a $276 price target.

Walmsley said the third-quarter performance, the OpenAI deal and the positive outlook for Amazon’s Trainium chips made him more optimistic about AWS’s long-term growth. In fact, the five-star analyst expects AWS revenue growth to accelerate from 20% in the third quarter to 21% in the fourth quarter of 2025 and 22% in the first quarter of 2026. He expects AWS revenue to rise 23% to $157 billion in all of 2026, followed by a 22% increase to $192 billion in 2027 — above the Street’s forecast of $154 billion and $185 billion. One billion dollars for the years 2026 and 2027, respectively.

“We believe investors continue to trade AMZN shares given a valuation well below its historical ranges and the positive news at the AWS ReInvent conference in early December is likely to continue,” Walmsley said.

The analyst’s bullish investment thesis is also based on cost-to-serve improvements in Amazon’s retail business, driven by automation in fulfillment centers and an enhanced logistics network.

Walmsley is ranked No. 103 out of more than 10,100 analysts tracked by TipRanks. His evaluations were successful 64% of the time, and he achieved an average return of 27.5%. See Amazon’s insider trading activity on TipRanks.

alphabet

This second stock pick is the owner of Google and YouTube alphabet (Google). The company reported better-than-expected third-quarter results, with artificial intelligence driving strong momentum in its cloud business.

Doug Anmuth, an analyst at JPMorgan, was impressed with the third-quarter performance Alphabet’s price target is $340 From $300 Verified Buy Rating. In comparison, TipRanks’ AI analyst has a price target of $316 with an “Outperform” rating on GOOGL.

Anmuth highlighted that the third quarter marks the first time Alphabet’s quarterly revenue has surpassed the $100 billion mark. The top-rated analyst noted Alphabet’s strong performance in the third quarter, with double-digit growth in every major business.

Interestingly, Anmuth believes that Q3 results and positive insights into AI search formats could change investors’ opinions towards Google’s AI search transition. Alphabet cited AI-driven acceleration in query growth and paid clicks, while Anmuth noted that industry conversations suggest that paid clicks using Google’s AI Overviews (AIO) and AI Mode (AIM) features lead to higher conversion rates.

“In general, the transition of AI search is seen as the biggest risk to Google, but additional signs that AI search represents more of an opportunity than a threat will continue to flip the narrative,” Anmuth said.

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

Anmuth is ranked No. 113 out of more than 10,100 analysts tracked by TipRanks. Its evaluations were profitable 63% of the time, and achieved an average return of 22%. See Alphabet’s ownership structure on TipRanks.

Advanced micro devices

The third tech giant this week is a chip maker Advanced micro devices (AMD), which achieved strong results in the third quarter of fiscal year 2025. AMD attributed its strong profits and revenues to its expanding computing business and the fast-growing artificial intelligence data center sector.

In response, Stifel analyst Robin Roy increased his rate The price target for AMD is $280 From $240 and repeat buy rating. With a price target of $285, the TipRanks AI analyst has an “outperform” rating on AMD stock.

Roy noted that AMD’s third-quarter bottom line was driven by strength across the company’s data center, AI, servers and PC hardware. The 5-star analyst highlighted management’s optimism about continued momentum in 4QFY25, with revenue expected to grow 25% year over year to $9.6 billion. AMD expects fourth-quarter revenue growth to be supported by strong performance in its data centers, customers and combined businesses, partially offset by double-digit declines in its gaming segment.

Interestingly, Roy believes AMD’s near-term performance is further boosted by increased demand for server CPUs and continued share gains in client CPUs rather than data center AI GPUs. The analyst expects AMD’s data center AI GPU business to increase to a range of $6 billion to $6.5 billion in FY25, versus a previous estimate of $5 billion.

“Looking ahead, we still believe AMD is doing well as the company approaches production shipments of its MI400/450 series GPUs and Helios rack next year,” Roy said.

The analyst is also bullish on AMD’s recently announced deals with OpenAI and Oracle Cloud Infrastructure, saying they provide clarity on the long-term growth outlook in its data center AI business. Roy is awaiting further insights from AMD on its technology roadmap and Total Addressable Market (TAM) at the upcoming Analyst Day event on November 11.

Roy is ranked No. 20 out of more than 10,100 analysts tracked by TipRanks. Its reviews were profitable 71% of the time, generating an average return of 34.4%. See AMD stats on TipRanks.