Key Takeaways
- UBS selected 12 “high-conviction” technology, media, and telecommunications stocks supported by robust AI momentum
- Amazon leads the selection, with AWS revenue forecast to expand 38% in 2026
- Palantir stands as UBS’s premier large-cap software choice, positioned to withstand AI-related disruptions
- JFrog, Twilio, and Arista Networks earned spots for their contributions to AI infrastructure buildout
- Certain software and media companies encounter margin challenges amid intensifying competition
UBS has unveiled a portfolio of 12 stocks representing its premier selections across the technology, media, and telecommunications sectors. The financial institution points to artificial intelligence as the central force shaping these recommendations, with significant momentum in semiconductors, cloud platforms, and data center operations.
Analysts at UBS selected these companies based on what they describe as a “differentiated view” for each position, supported by proprietary research and data sources. The report became available in late March 2026.
Amazon leads the selection. Analyst Stephen Ju describes the e-commerce and cloud giant as a “coiled spring,” suggesting the company has yet to realize the complete impact of its AI investments. Amazon has allocated $200 billion for capital expenditures in 2026, with approximately $150 billion directed toward Amazon Web Services.
UBS forecasts AWS revenue expansion of 38% for 2026. This projection surpasses the 20% growth recorded last year and exceeds the Wall Street consensus hovering around 25%. Amazon’s shares have declined roughly 10% during 2025, which UBS interprets as a favorable entry point.
Palantir emerges as UBS’s leading selection within large-capitalization software companies. Analyst Karl Keirstead positions the company “at the nexus” of AI and data infrastructure investment. He views Palantir as possessing stronger defenses against AI-driven disruption compared to most software-as-a-service providers, given its role as a significant infrastructure vendor.
Infrastructure-Focused Selections
Arista Networks secured a position on the list. UBS anticipates that AI-fueled demand remains underrepresented in current revenue projections and expects actual performance to surpass the company’s published guidance.
Entegris completes the semiconductor-related selections. UBS anticipates the company will exceed broader semiconductor industry growth rates as demand for sophisticated materials increases with each successive wafer generation.
JFrog received recognition as the leading small and midcap infrastructure software selection. Despite a 25% share price decline over the past quarter, UBS analyst Radi Sultan believes AI-related risks are already reflected in the valuation. He observed that customers demonstrate “virtually no appetite” for platform migration.
Twilio earned its spot through its position in AI-enhanced communication technologies. The company’s usage-based pricing structure was emphasized as a competitive edge relative to seat-based alternatives.
Selections Beyond Core AI Categories
Several selections extend beyond direct AI applications. Mastercard joined the list due to its pricing strength and exposure to travel sector recovery alongside foreign exchange dynamics.
Netflix appeared on the roster based on expectations for superior performance versus competitors through subscriber expansion, advertising-supported subscription tiers, and financial discipline.
American Tower currently trades near multi-year valuation lows, according to UBS, yet stands to gain from escalating mobile data consumption linked to 5G network deployment.
Global Business Travel Group appears positioned to maintain low double-digit growth rates through 2027, outpacing broader industry patterns.
Accenture received attention as underappreciated by markets due to macroeconomic uncertainties, despite solid booking trends and advancing free cash flow generation.
Global-e Online completes the selection. UBS considers the company less vulnerable to AI disruption compared to many industry counterparts, reinforcing its extended growth trajectory.
UBS’s latest projections indicate AWS revenue growth of 38% for 2026, substantially above the prevailing Street consensus of 25%.
