Twilio will outperform as it embraces artificial intelligence, so investors should start adding the stock to their portfolios, according to Bank of America. The bank's research arm double upgraded the messaging software name to buy from underperform. It also raised its price target on shares to $190 from $110, implying 30.8% upside from Tuesday's close. "We see positive inflections in its strategic positioning in AI and its fundamentals," analyst Koji Ikeda said in a note to clients. "Twilio will prove to be one of the key infrastructure layers for AI-driven voice and messaging uses cases, where scale and reliability are critical." TWLO YTD mountain TWLO year to date Twilio has built several products that seem poised to form the "backbone of many future AI digital experiences," Ikeda said. Those include ConversationRelay, which aims to generate human-like speech that connects to large-language models like ChatGPT, as well as a product called Conversational Intelligence. The latter offers AI-based transcription and language analysis services for phone calls. "Twilio's products … are designed to create voice AI experiences that many companies will need in the future," Ikeda wrote. "While there are competitors in every Twilio product category (messaging, email, customer data platform, etc.), our industry checks suggests that no competitor can deliver a similar level of service at enterprise volume scale." The analyst added that Twilio can further bolster those capabilities through its partnerships with leading startups in AI, including Sierra and ElevenLabs. Those opportunities should boost Twilio's gross profit dollar growth — a key metric for the software firm. Bank of America expects gross profits to grow 10% year-over-year for fiscal 2028. The bank's call falls in line with consensus on Wall Street. Of the 30 analysts covering Twilio, 23 have a strong buy or buy on the stock, per LSEG. Shares have risen more than 5% this year.
