UBS Names Palantir, AT&T and Spotify Amongst Top Tech Stock Picks

TLDR

• UBS named Palantir, AT&T and Spotify amongst its top skills, media and telecom stock picks.
• Palantir has lagged the market in 2026 without reference to sturdy revenue boost and wider working margins.
• AT&T has trailed the S&P 500 but continues to acquire the merit of its wi-fi and fiber dwelling.
• Spotify shares are down this year, though UBS expects subscriber boost, label will increase and margin expansion.
• The broader market ended the week mixed because the 10-year Treasury yield moved shut to 5%.

UBS has named Palantir, AT&T and Spotify amongst its top stock picks one day of skills, media and telecommunications, despite the indisputable truth that all three obtain trailed the broader market in 2026.

The investment financial institution highlighted 14 companies in a research display disguise, specializing in companies with clear boost drivers, lower valuations and exposure to tendencies corresponding to synthetic intelligence, cloud computing and digital companies and products.

Palantir shares are down about 1.5% this year at roughly $175. The stock came wired earlier in 2026 as traders puzzled whether or no longer more recent AI units may perhaps perhaps perhaps weaken put a question to for instrument companies.

Palantir Applied sciences Inc., PLTR

UBS Sees Upside in Palantir and AT&T

Palantir’s valuation has moreover fallen sharply. The stock traded advance 180 cases projected 12-month earnings in January, but that a pair of has since been cut roughly in half.

The company’s working efficiency has remained sturdy. Palantir reported 93% year-over-year revenue boost in the 2d quarter.

Adjusted working margins moreover climbed to 62% from 46% a year earlier.

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UBS acknowledged put a question to for Palantir’s AI and automation instrument stays sturdy and that the corporate has viewed small aggressive drive from AI mannequin suppliers or other files instrument companies.

The financial institution has a $250 label target on Palantir, in contrast with a most up-to-date portion label advance $175.

AT&T has moreover lagged the broader market, rising about 2.5% in 2026 to around $25.46.

By comparison, the S&P 500 has obtained about 11.4% this year.

UBS sees AT&T taking advantage of elevated bundling one day of wi-fi and broadband companies and products.

The company is already a fundamental U.S. wi-fi and fiber operator and has persevered investing in fiber while conserving cash drift.

UBS acknowledged that affords AT&T room to continue portion buybacks and protect its dividend.

The financial institution has a $31 label target on AT&T, representing roughly 22% upside from most up-to-date levels.

Spotify Valuation Falls as Market Stays Uneven

Spotify has performed worse than the choice two stocks this year, falling about 11% to roughly $519.

The streaming company continues to add subscribers, though its most up-to-date earnings were distress by elevated working charges.

UBS expects Spotify to convert more free customers into paid subscribers, raise costs and make larger extra into products with elevated margins, collectively with audiobooks.

The stock trades at about 31 cases projected earnings for the next one year, down from around 42 cases initially of the year.

UBS has region a $690 label target on Spotify.

The financial institution moreover named Amazon, Pinterest, Procore Applied sciences and Texas Instruments amongst its most popular skills stocks.

The broader market performed Friday mixed. The Nasdaq obtained 0.4%, the S&P 500 added 0.2%, and the Dow fell 0.2%.

The ten-year Treasury yield moved shut to 5% as traders elevated expectations for one other Federal Reserve rate lengthen in October.

Chip stocks recovered from losses earlier in the week, while oil costs eased beneath $100. Palantir, AT&T and Spotify stay amongst UBS’s chosen stock picks as traders weigh earnings boost in opposition to elevated ardour charges.