Amazon stock could see 25% upside, Palantir stock another top AI pick, UBS says

UBS analysts have identified Amazon (AMZN) as their top pick among large-cap internet stocks, projecting roughly 25% upside with a $318 price target. The bank argues that the artificial intelligence investment cycle is transitioning into a new phase led by widespread enterprise adoption. As businesses shift from experimental pilot programs to deploying AI workloads at scale, Amazon Web Services (AWS) is expected to maintain its role as the default cloud computing platform, bolstered by the deployment of proprietary Trainium 2 and Trainium 3 chips extending into 2027. In addition to Amazon, UBS highlighted high-conviction opportunities across tech, media, and telecommunications, predicting data-center infrastructure spending will expand at an annualized rate of at least 30% over the next three years. Palantir Technologies was spotlighted as a key software beneficiary at the intersection of AI and data integration, with analysts projecting 88% revenue growth and operating margins in the low-60% range, setting a $250 price target.