Five top tech stocks with major upside, Bank of America says
There’s a slew of tech stocks to buy heading into the second half, according to Bank of America. The firm says stocks like Nvidia are top ideas that offer plenty of upside potential. Other stocks screened by CNBC Pro and rated buy at Bank of America include: Meta, Snowflake, Dynatrace and Sandisk. Sandisk Shares of Sandisk are still compelling, analyst Wamsi Mohan said recently, following a meeting with management. Mohan praised the company’s effort to switch to a new business model focused on multiyear contracts in an attempt to prevent cyclical fluctuations in its revenue. Sandisk’s pricing power will be key for the stock to work, he said. “We see the NBMs as win-win as they lock in committed supply for customers, and committed financials for Sandisk,” he wrote. Bank of America also raised its price target to $2,100 per share from $1,550. “Reiterate Buy on valuation, beneficial joint venture partnership, share gains, and long-term potential for industry consolidation,” he said succinctly. The stock is up more than 820% this year. Read more. Dynatrace This artificial intelligence-powered software stock is a “great” idea for the second half, according to analyst Koji Ikeda. The firm raised its price target to $50 per share from $48 following a meeting with company management. “We are more convinced its value proposition will land more strategic deals and higher usage, driving strong growth in its key metric: net-new annual recurring revenue (ARR) in constant currency,” he said. Ikeda also says Dynatrace is uniquely positioned to help deliver AI experiences in a secure fashion. “We believe Dynatrace is poised for multiple years of high growth in a large and expanding market,” he went on to say. Shares have fallend 4% year to date. Meta Analyst Justin Post is bullish on Meta shares but says he sees even more upside following the company’s rollout of its new AI search feature. “The ‘search’ opportunity remains large for Meta, if the company can drive product adoption,” he said earlier this week. AI should help search indexing become stronger, making it a plus for Meta, he said. In addition, Meta has a wave of positive catalysts ahead including the “launch of consumer agentic products, more advanced LLMs, Connect conference (Sep’26), and more details on enterprise AI opportunity,” he wrote. Shares are down 13% year to date, but investors should buy the dip, the firm said. Nvidia “Our $350 PO is based on 26x CY27E PE ex cash, within NVDA’s historical 25x-56x forward year PE range, which we believe is justified by NVDA’s leading share in fast growing AI compute/networking markets, offset by lumpiness in global AI projects, cyclical gaming market, and concerns around access to power.” Snowflake “We rate SNOW Buy. Snowflake possesses compelling competitive advantages, including 1) data warehouse first mover in the cloud, 2) native interoperability with the major public clouds, 3) ability to run multiple workloads, such as data warehouse, data engineering/data science and data sharing , 4) large installed base of enterprise customers and 5) traction in the AI Software market.” Meta “AI technology has opened the door for better ‘indexing’ of content for search results, possibly creating an opportunity for Meta. … The ‘search’ opportunity remains large for Meta, if the company can drive product adoption. … Next catalysts: Launch of consumer agentic products, more advanced LLMs, Connect conference (Sep’26), and more details on enterprise AI opportunity.” Dynatrace “We are more convinced its value proposition will land more strategic deals and higher usage, driving strong growth in its key metric: net-new annual recurring revenue (ARR) in constant currency. … AI is making it harder for enterprises to deliver digital experiences efficiently and securely. … We believe Dynatrace is poised for multiple years of high growth in a large and expanding market.” Sandisk “The company did not provide any update to its guidance. Investor questions focused on the multi-year supply partnerships between SNDK and its customers, referred to as new business models (NBMs). … We see the NBMs as win-win as they lock in committed supply for customers, and committed financials for SNDK. Reiterate Buy on valuation, beneficial joint venture partnership, share gains, and long-term potential for industry consolidation.
