Amid ongoing tensions in the Middle East due to the U.S.-Iran war and elevated oil prices, Wall Street analysts have identified Amazon (AMZN) and SanDisk (SNDK) as stocks with strong growth potential, despite near-term market challenges [1]. J.P. Morgan analyst Doug Anmuth reiterated a buy rating on Amazon and raised his price target to $280 from $265, citing solid demand and capacity expansion in Amazon Web Services (AWS) [1]. Anmuth projects AWS growth rates of 29%, 30%, 29%, and 28% for each quarter of 2026, followed by 26% growth in 2027, attributing these estimates to increased AI adoption and traditional workloads moving to the cloud [1]. AWS also expanded its partnership with OpenAI to a $138 billion deal over eight years, with the AWS backlog expected to increase by $100 billion quarter-over-quarter in Q1 2026 [1]. While higher fuel prices and international growth investments are expected to impact near-term operating income, Anmuth remains optimistic about Amazon's medium-term margin expansion, driven by inventory optimization, same-day delivery, robotics and automation, and ad business growth [1].
SanDisk (SNDK) is also favored by Bank of America analyst Wamsi Mohan, who reaffirmed a buy rating and set a price target of $900 after meetings with the company's CFO Luis Visoso and other executives [1]. Mohan cited a "secular opportunity as AI inference makes NAND more indispensable," and expressed increased confidence in the sustainability of NAND demand due to robust requirements from hyperscalers and AI inference [1].
The analysts' positive outlooks are based on concrete data points, including revised growth estimates, major partnership deals, and direct feedback from company executives. Both Amazon and SanDisk are seen as well-positioned to benefit from ongoing AI adoption and cloud migration trends, despite the broader market volatility caused by geopolitical tensions and rising oil prices [1].
CONCLUSION
Top Wall Street analysts remain bullish on Amazon and SanDisk, citing strong growth drivers in AI and cloud computing. Despite near-term headwinds from geopolitical tensions and elevated oil prices, both companies are expected to deliver robust performance and margin expansion. Investors are encouraged to look beyond immediate challenges and capitalize on attractive valuations.