BofA, JPMorgan, Oppenheimer Pick 3 AI Stocks; Palantir Target $255

The three picks reflect a comprehensive thesis on AI's supply chain momentum. Rather than concentrating on a single sector, Bank of America, JPMorgan, and Oppenheimer have identified companies at three distinct points: Palantir monetizing enterprise AI software directly to customers; Amazon capturing cloud demand through AWS infrastructure; and Lam Research supplying the manufacturing equipment that chipmakers need to produce the silicon powering these systems. This layering suggests the analysts believe AI investment will remain robust across the entire ecosystem despite ongoing concerns about valuations.

The concrete evidence supporting this view is substantial. Palantir's US commercial revenue growth of 149% year over year, combined with its expansion of the customer base to 653 and a 76% climb in trailing 12-month revenue per customer to $3.5 million, demonstrates not just adoption but deepening monetization. AWS's 37% growth in Q2—the fastest in 18 quarters—alongside a $496 billion backlog that nearly doubled year over year, shows cloud demand has not plateaued. Lam Research's position is underscored by management raising its 2026 wafer fabrication equipment spending outlook to the low-$150 billion range, signaling capital intensity in chip production is accelerating. The convergence of these three trends (software adoption, cloud expansion, and equipment capex) supports the analysts' argument that AI spending remains the dominant driver.