Netflix, Amazon named among UBS top technology, media and telecommunications stocks picks Proactive uses images sourced from Shutterstock
UBS has outlined its preferred stock picks across the technology, media and telecommunications (TMT) sectors, highlighting companies where its analysts believe market expectations diverge meaningfully from underlying fundamentals.
In business and professional services, Accenture PLC (NYSE:ACN) is identified as the firm’s top choice. UBS argues the stock is undervalued relative to its growth prospects, noting it is trading at a discount to the broader S&P 500 for the first time in more than 15 years. “We believe the market is undervaluing Accenture’s earnings growth amid macro uncertainty,” the analysts wrote, adding that current pricing reflects sentiment rather than fundamentals.
Within media and telecom services, Netflix Inc (NASDAQ:NFLX, XETRA:NFC) is the preferred pick. UBS expects industry dynamics to increasingly favour the company as competitors scale back spending and raise prices. “The wider direct-to-consumer environment will continue to shift in Netflix’s favor,” the note said, pointing to the company’s continued investment and monetisation capabilities as drivers of subscriber and revenue growth.
For communications infrastructure, American Tower Corp (NYSE:AMT) is highlighted, with UBS pointing to strong demand driven by 5G deployment and rising mobile data usage. The analysts noted that “mobile data usage is growing at 35% annually,” supporting a positive long-term outlook despite the stock trading at multi-year valuation lows.
Among large-cap internet companies, Amazon.com Inc (NASDAQ:AMZN) is UBS’s top idea, largely due to expectations of accelerating growth in its cloud division. “We reiterate our view that AWS growth could accelerate to around 38% in 2026,” the report said, significantly above broader market expectations, supported by substantial capital expenditure and backlog.
In the small- and mid-cap internet segment, Global Business Travel Group is favoured. UBS believes the company can sustain double-digit revenue growth, supported by gains in managed travel share and expansion in small and medium-sized enterprise customers. The analysts described their forecasts as “reasonable and potentially conservative,” citing multiple avenues for upside.
Within payments and IT services, Mastercard Inc (NYSE:MA) is the preferred large-cap name. UBS highlighted its resilience and diversified growth drivers, including new payment flows and value-added services. “Mastercard delivers strong profitability, balanced exposure, and resilience in moderate recessions,” the bank’s analysts wrote.
For smaller-cap payments, Global-e Online is selected, with UBS pointing to its merchant-of-record model as a competitive advantage in a complex global trade environment. The firm expects strong long-term growth in gross merchandise value and free cash flow margins.
In semiconductors, Entegris is UBS’s top pick, reflecting expectations that demand tied to artificial intelligence will lift industry capacity and spending. “Content of advanced materials per wafer is expanding, so Entegris should outgrow its industry on the top line,” the analysts wrote, also highlighting potential margin improvements from operational changes.
Among software large caps, Palantir Technologies Inc (NYSE:PLTR) is identified as a key beneficiary of rising investment in artificial intelligence and data. UBS said the company sits “at the nexus of the two most powerful spending trends – AI and data,” and pointed to strong demand conditions supporting above-consensus growth.
In enterprise software, Twilio Inc (NYSE:TWLO) is the preferred small- and mid-cap name. UBS sees the company as well positioned to benefit from AI-driven communication trends, with durable growth supported by cross-selling and international expansion. “Twilio is positioned as the communications infrastructure layer for AI-driven interactions,” they wrote.
For software infrastructure, JFrog is highlighted, with UBS citing demand for its development and security tools alongside AI-driven tailwinds. The analysts believe that the company is “a key AI-DevOps beneficiary,” supported by growing enterprise requirements around governance and security.
Finally, in telecom and networking equipment, Arista Networks Inc (NYSE:ANET) is UBS’s top pick. The firm believes consensus estimates underestimate the impact of AI infrastructure demand. “The market is not accurately reflecting AI infrastructure demand in revenue and EPS estimates,” UBS wrote, pointing to supply chain indicators that suggest potential upside.