Wall Street analysts are still bullish on some of the biggest names in technology. In fact, in a series of fresh analyst notes, Evercore ISI reiterated its Outperform rating on Apple (NASDAQ: AAPL), Bank of America stuck with a Buy rating on NVIDIA (NASDAQ: NVDA), and Wells Fargo raised its price target on Amazon (NASDAQ: AMZN) while maintaining an Overweight rating.
While the three companies face issues, the overall message from the firms is fairly consistent: there are some near-term concerns, but the bigger growth stories remain intact.
Apple’s App Store Growth Slows as Gaming Revenue Weakens
Evercore ISI is keeping its Outperform rating on AAPL, but its latest checks point to an area that investors will want to watch: App Store revenue. According to the firm, August App Store revenue declined about 1% year over year. That marks the sixth consecutive month of deceleration and, more notably, the first year-over-year decline since November 2022.
The weakness appears to be concentrated in gaming.
Evercore said its App Store data suggests the Gaming segment once again weighed on overall growth, with gaming revenue falling roughly 10% year over year during August. That doesn’t necessarily spell trouble for the company’s broader business, but it does highlight an important part of the company’s massive services ecosystem that isn’t firing on all cylinders right now.
The App Store is a key component of Apple’s Services business, which has become increasingly important as the company looks to generate more recurring revenue beyond iPhone sales. A sustained slowdown in App Store activity could therefore become something investors pay closer attention to, particularly if weakness spreads beyond gaming.
Bank of America Says NVDA Valuation Still Looks Attractive
NVIDIA is getting a similarly positive vote of confidence from Bank of America.
Following a series of meetings with the company’s investor relations team, Bank of America reiterated its Buy rating and maintained the company as its top sector pick.
The firm argues that the stock’s valuation looks particularly attractive relative to its growth prospects. Bank of America estimates NVDA is trading at roughly 16 times calendar-year 2027 earnings, with a price-to-growth ratio of around 0.3x.
According to the firm, that’s the lowest level in roughly a decade.
That valuation argument is especially notable because NVIDIA’s explosive growth has made the stock one of the market’s most closely watched names. Investors have spent considerable time debating whether expectations have simply gotten too high. Bank of America, however, appears to believe the market may be underestimating the company’s demand outlook.
The firm also pushed back against concerns surrounding memory availability and what it described as “circular-financing” worries. Those issues have become part of the broader debate around the sustainability of artificial intelligence infrastructure spending.
Wells Fargo Raises AMZN Price Target on Strong AWS Outlook
Amazon is also getting a vote of confidence from Wall Street.
Wells Fargo reiterated its Overweight rating on the company and raised its price target to $338 per share, up from $328. Much of the firm’s optimism comes down to Amazon Web Services, or AWS. The firm is also expecting AWS revenue to come in well above consensus estimates.
As a result, Wells Fargo now expects AWS operating income to be approximately 9% above consensus in 2027 and 12% above consensus in 2028. That could give AMZN another leg of growth as investors increasingly focus on artificial intelligence.
Analysts See Long-Term Growth Despite Near-Term Headwinds
Apple has a clear area of weakness in gaming and App Store revenue, but Evercore ISI still sees enough strength in the broader story to maintain its Outperform rating.
NVIDIA is dealing with questions about valuation, memory constraints and the sustainability of AI spending, yet Bank of America believes the stock’s valuation has become increasingly compelling relative to its growth.
Amazon, meanwhile, is benefiting from growing optimism around AWS, particularly as AI-related demand and improved margins potentially create upside to earnings estimates.
For investors, the common thread may be more important than any individual headline: Wall Street is still willing to look through near-term concerns when the long-term growth story remains convincing.
Risks to the Bullish Thesis
Apple’s App Store weakness could persist, NVIDIA faces intense expectations, and Amazon still has to prove that its AWS and AI opportunity can translate into the kind of earnings growth analysts anticipate. But for now, the message from Evercore ISI, Bank of America and Wells Fargo is clear: despite some bumps along the way, the biggest technology names continue to have plenty of believers on Wall Street.
