TLDR
- Meta remains JPMorgan’s top pick with a $675 price target due to strong AI ad enhancements and resilient Q1 performance
- Amazon reported better-than-expected Q1 results with AWS operating margin hitting an all-time high of 39.5%
- Roku is well-positioned in the connected TV industry despite lowering its 2025 revenue outlook
- Nvidia shares are trading at 26x forward earnings, down from 50x earlier this year, despite continued AI market growth
- Target has grown earnings consistently and has a strong portfolio of over 40 owned brands
The U.S. stock market has experienced volatility in recent months, with major indexes trending downward since the start of the year. Despite this uncertainty, top Wall Street analysts continue to recommend several tech stocks they believe will deliver solid growth potential even in challenging economic conditions.
Meta Platforms (META) leads the pack of analyst favorites. The Facebook and Instagram parent company beat expectations in its first quarter 2025 earnings report. JPMorgan analyst Doug Anmuth reiterated a buy rating on META stock while raising his 12-month price target to $675 from $610.
Anmuth believes Meta’s AI ad enhancements, including Andromeda and GEM technologies, are having a major impact on the company’s monetization capabilities. He views Meta as well-positioned to weather macro challenges thanks to its scaled advertiser base and highly performant platform.
Cloud Computing and E-commerce Giants Show Resilience
Amazon (AMZN) also received a strong buy recommendation from analysts, with JPMorgan raising its price target to $225. The e-commerce and cloud computing giant posted better-than-expected Q1 2025 results, though it issued softer guidance for Q2 due to tariff concerns.
AWS, Amazon’s cloud division, achieved an all-time high operating margin of 39.5% in Q1. The company has taken proactive measures to pull forward inventory in response to tariff threats.
Analysts note that Amazon typically emerges from uncertain market periods with increased market share. The company’s focus remains on broad selection, competitive pricing, and fast delivery even in challenging times.
Nvidia (NVDA) presents another compelling investment case. The AI chip leader’s stock is now trading at 26x forward earnings estimates, down from 50x earlier this year, presenting a rare buying opportunity.
Streaming and Retail Sectors Show Promise
Roku (ROKU) also earned positive analyst attention despite trimming its full-year revenue outlook. Wedbush Securities analyst Alicia Reese maintained a buy rating with a $100 price target, citing Roku’s recent acquisition of Frndly TV and its diversified business model.
Reese expects Roku to benefit from its demand-side platform partnerships, high-quality inventory, improved ad targeting capabilities, and various price points across its platform.
Target (TGT) rounds out the list of recommended stocks. The retailer has grown earnings consistently over the years despite consumer spending headwinds. Target has invested heavily in digital sales, same-day delivery options, and store renovations.
The company’s portfolio of over 40 owned brands has been a key driver of profitability, with about a quarter of these brands generating at least $1 billion in annual sales. Target’s current valuation of 10x forward earnings estimates is near a three-year low, potentially offering a good entry point.
Wall Street experts emphasize that market uncertainty often creates buying opportunities for long-term investors. They suggest that quality, well-established companies trading at reasonable valuations may deliver strong returns despite short-term market challenges.
These recommendations come as the Federal Reserve recently announced plans to keep interest rates steady, while warning that “uncertainty about the economic outlook has increased further.”
Market concerns have been amplified by ongoing tariff tensions. President Donald Trump temporarily halted planned import tariffs to allow for negotiations with various countries. While an initial deal with the UK has been announced, the process remains in early stages.
For investors with $1,000 or less to allocate, these stocks may offer exposure to companies that analysts believe can navigate current challenges while positioning for future growth.
