Analysts flag Amazon, Marvell and AMD as AI demand tests market nerves

Wall Street analysts tracked by TipRanks are pointing to Amazon, Marvell Technology and Advanced Micro Devices as stocks they still like for the long run, even as markets deal with renewed Middle East tensions and doubts about the durability of AI spending. For everyday investors, the common thread is AI infrastructure: cloud services, networking chips and processors that power the data centers behind new AI tools.

TipRanks, a platform that ranks analysts based on their historical performance, highlighted recent bullish calls from TD Cowen, RBC Capital and Wells Fargo. A bullish call, often labeled a buy rating, means the analyst expects the stock to perform well relative to their coverage or the broader market, though it is not a guarantee and should not be read as personal investment advice.

Amazon: AWS and ads stay in focus

TD Cowen analyst John Blackledge kept a buy rating on Amazon, according to TipRanks, while trimming his price target to $340 from $350. A price target is an analyst’s estimate of where a stock could trade over a set period, based on their model.

Blackledge’s Amazon view centers on strength in Amazon Web Services, the company’s cloud computing unit, plus its e-commerce and advertising businesses. He expects Amazon to report second-quarter revenue of $200.1 billion, which TipRanks said is 2% above Wall Street consensus, meaning the average forecast among analysts.

He also expects Prime Day timing to help the e-commerce business because the event shifted into the second quarter in the U.S. and other key markets this year, compared with the third quarter last year. For AWS, Blackledge forecasts 35.5% year-over-year revenue growth in the second quarter of 2026, faster than 28.4% in the year-earlier period and 3.4% above consensus, according to TipRanks.

Blackledge attributed the cloud outlook to rising generative AI workloads and Amazon’s AI infrastructure spending, which he expects to ease supply limits. He also said his third-quarter revenue and operating income estimates are above consensus, helped by further AWS acceleration tied to AI demand. TipRanks ranks Blackledge No. 771 among more than 12,300 analysts, with profitable ratings 55% of the time and an average return of 11.2%.

Marvell: AI networking demand drives the thesis

RBC Capital analyst Srini Pajjuri reiterated a buy rating on Marvell Technology and set a $360 price target after meetings with management, according to TipRanks. Marvell makes semiconductor products used in data centers, networking and custom chip programs.

Pajjuri said those meetings strengthened his view that Marvell can keep growing more than 40% for the next three years, driven by AI demand, optical connectivity and a larger custom chip pipeline. Optical connectivity refers to technology that uses light to move data quickly between systems, a key need inside AI data centers.

According to TipRanks, Pajjuri said strong demand and tight supply are improving revenue visibility. He expects Marvell’s data center business to grow more than 50% this year and next. He also said networking is growing faster than compute, helped by agentic AI and inferencing workloads. Inferencing is the process of running an AI model after it has been trained.

Pajjuri noted that optical product lead times have stretched beyond six months and that XPU customers are placing purchase orders 12 months ahead. He kept his estimates unchanged but sees possible upside from optical products in the second half of 2026, with more meaningful upside potential in 2027 and 2028. TipRanks ranks Pajjuri No. 88 among more than 12,300 analysts, with successful ratings 75% of the time and an average return of 51.5%.

AMD: Data center chips remain the key measure

Wells Fargo analyst Aaron Rakers reaffirmed a buy rating on AMD and lifted his price target to $615 from $505 ahead of the company’s Aug. 4 second-quarter earnings report, according to TipRanks. AMD shares have risen year to date, helped by demand for AI graphics processing units, or GPUs, and server central processing units, or CPUs.

Rakers expects AMD to repeat its confidence in the MI450 series and Helios ramp beginning in the third quarter of 2026. He raised his server CPU revenue estimates to $16.0 billion in 2026, $20.5 billion in 2027 and $25.0 billion in 2028, representing growth of 68%, 28% and 22%, respectively.

He also pointed to AMD’s prior estimate that the server CPU total addressable market could reach $120 billion by 2030. Total addressable market means the full revenue opportunity a company believes is available in a segment. Rakers expects AMD to discuss stronger server CPU demand since its first-quarter results, citing agentic AI demand, cloud demand and enterprise upgrades.

For data center GPUs, Rakers’ estimates are above consensus at $15.6 billion in 2026, $40.6 billion in 2027 and $63.0 billion in 2028, according to TipRanks. He projects earnings per share, or EPS, of $7.15 in 2026, $13.40 in 2027 and $18.75 in 2028. EPS measures profit divided by shares outstanding. TipRanks ranks Rakers No. 5 among more than 12,300 analysts, with successful ratings 73% of the time and an average return of 56.8%.

This story draws on original reporting from CNBC.