Wall Street Analysts Turn Bullish on Palantir, Datadog, Amazon and Tech Giants Ahead of Fed Decision

The Wall Street analysts have in their flow of positive grading given these tech behemoths, so to speak-Namely, Amazon, Nvidia, Datadog, Palantir, and Apple. This again fueled much excitement in the markets on Wednesday. The broader market sentiment grew stronger; the S&P 500 in pre-market trading showed an advance of 0.25% as investors awaited the interest rate decision by the Fed later in the day.

Expectations of a Fed rate cut fuel bullishness

Markets are nearly priced in for a FOMC approval of a second consecutive 25-basis point rate cut, reducing the federal funds rate to within a target range of 4%-4.25%, quoted CNBC. The prospect of further easing has helped add to the good momentum that equities currently enjoy.

Nvidia Soars on AI Growth Outlook

Nvidia continued its rally and gained an additional $7.77 in pre-market trading, following a day of more than $9 gains. The company announced expectations of $500 billion in sales of AI chips and a partnership with the U. S. Department of Energy to build seven new supercomputers.

Right after these announcements, Goldman Sachs and Citi reiterated their buy rating on Nvidia, each setting a target price of $210; meanwhile, Bank of America increased its target price from $235 to $275, citing massive growth prospect in AI infrastructure.

Palantir Set for Strong Growth

Palantir (NASDAQ: PLTR) saw strengthening momentum after Wedbush Securities reaffirmed an outperform rating in advance of the company's earnings on November 3. Analysts indicated the possibility of Palantir emerging as a trillion-dollar company as the demand for AI-driven data solutions grows globally.

Amazon Analysts Stay Bullish Ahead of Earnings

Loop Capital further highlighted selling leverage on behalf of Amazon in maintaining its buy rating ahead FQ-3 earnings on Thursday. Expect accelerating AWS revenue growth and retail unit sales continuing an uptrend from Q2 were analysts' expectations.

Apple Maintains Strong Buy Rating

Bank of America reiterated its buy rating on Apple (NASDAQ: AAPL) with a price target of $320, appreciating its increased potential in the AI hardware ecosystem. The analysts observed that some AI-integrated products from Apple, i.e., smart eyewear and home robotics, have the potential to greatly enhance their revenue streams.

Datadog Gains Confidence From Analysts

This positive vibe was evident regarding Datadog. Bank of America maintained its buy rating on it but raised its price target from $175 to $180 in the run-up to November 6 earnings report. Going with the upgrade, it now has higher confidence in Datadog’s strong fundamentals and growing AI-driven analytics business.

Broader Market Outlook

With strong earnings anticipated and Federal Reserve support anticipated in the near term, Wall Street analysts are bullish on the technology sector. The momentum is being promulgated by an ongoing rally in the AI and cloud-related shares, with several experts now suggesting that any further upwind will come from a Fed-inspired rate cut, to be completed by year-end.