Palantir and Amazon: Analysts Raise Targets After Strong Q2

Palantir Technologies topped second-quarter expectations and raised its full-year guidance. Amazon and Lam Research also delivered results that beat estimates. Analysts responded by raising price targets on all three stocks, citing AI demand and commercial strength.

Bank of America analyst Mariana Perez Mora reiterated a buy rating on Palantir with a $255 price target after the Q2 print. Palantir's U.S. commercial business now makes up almost 40% of total revenue, up from 30% a year ago, Mora said. That business grew 149% in Q2 2026. The customer count rose 35% year-over-year to 653, and trailing 12-month revenue per customer jumped 76% to $3.5 million. Mora raised her 2026-2028 sales and EPS estimates, citing stronger total contract value in the quarter. She ranks No. 444 among analysts tracked by TipRanks, with a 57% success rate and average return of 32.6%. Palantir carries an Alpha Score of 56 out of 100 on AlphaScala, a moderate rating that reflects its growth trajectory and valuation.

JPMorgan analyst Doug Anmuth reiterated a buy rating on Amazon and raised his price target to $365 from $330, calling the stock the firm's Best Idea. Amazon's forex-neutral revenue growth accelerated to 20% in Q2, the fastest in 20 quarters, Anmuth said. AWS growth hit 37%, the fastest in 18 quarters, with backlog jumping nearly 2.5x year-over-year to $496 billion. The backlog reflects strong demand across core workloads and AI adoption. Anmuth raised his 2026 and 2027 sales estimates by 1% to 2% and operating income estimates by 5% to 7%. Management told analysts the return on invested capital on its AI investments is compelling, Anmuth said. He ranks No. 717 among analysts tracked by TipRanks, with a 58% success rate and average return of 10.5%.

Oppenheimer analyst Edward Yang reaffirmed a buy rating on Lam Research with a $400 price target after the company's fiscal Q4 results beat expectations. Yang said the Customer Support Business Group performed well and NAND revenue doubled from the prior quarter. The September-quarter revenue and EPS outlook exceeded Street estimates by mid-teens percentages, Yang noted. Lam Research raised its wafer fabrication equipment spending outlook to the low-$150 billion range from $140 billion. Yang called calendar 2027 "extraordinary" for the industry, citing persistent supply shortages and 8 to 10 new fabrication plants. He raised his 2027 revenue and EPS estimates by 7% and 9% to $33 billion and $8.88, and his 2028 estimates by 7% and 8% to $36.6 billion and $9.89. "It's the cleanest way to play AI-driven 3D scaling across memory, foundry/logic, and packaging," Yang said. He ranks No. 256 among analysts tracked by TipRanks, with a 71% success rate and average return of 56.4%.