©Reuters
Investing.com — A look at this week’s biggest analyst moves in the artificial intelligence (AI) space.
InvestingPro subscribers are always the first to know what market-moving AI analysts are saying. Upgrade today!
Acquire Apple, cut Nvidia ahead of GTC event – Lynx Analyst
Analysts at Lynx Equity Strategies said in a note to clients on Friday that they are buying Apple stock (NASDAQ:) ahead of the GPU Technology Conference (GTC) event later this month and increasing their holdings in Nvidia (NASDAQ:). advocated reducing.
He argues that for AI to be widely adopted, major companies like Apple and Google (NASDAQ:) need to get involved, and current AI winners like Nvidia and AMD (NASDAQ:) need to get involved. refutes the view that they are used as a source of funds for investment.
He emphasizes that for the AI revolution to achieve global scale, it will require the involvement of big tech companies like Apple and Google.
“Maybe they’re behind the ball. If so, are investors willing to bet that AI can really drive global applications with just one hyperscale cloud provider, MSFT?” said the analyst. wrote.
“The AI revolution is definitely coming. It will become a part of our daily lives. We are only pointing out the inconvenience of the time and resources required to spread the revolution globally. is.”
“Without the participation of AAPL and GOOG, the revolution cannot happen in any meaningful timescale. If they are late, so be it,” they added.
BofA analysts expect Broadcom to accelerate in 2H 2024
Bank of America analysts raised their price target on Broadcom (NASDAQ:) from $1,500 to $1,680 and reiterated their Buy rating following the company’s Q1 2024 report.
Analysts believe that the first half of this year could be a trough for AVGO’s non-AI semiconductor sales, especially in the broadband sector.
Looking ahead, we expect these sales to gain momentum in the second half of the year, achieving double-digit growth by the end of the fourth quarter and continuing through fiscal 2025.
“On the other hand, we believe that AI sales (currently over 30% of Semi) could grow at a CAGR of 20-25% over the long term, with an even larger contribution from high-speed switches. “The company is expected to exit at nearly $4 billion, implying a growth trajectory of more than 10% year-on-year through FY25,” analysts wrote in a note.
“In addition to our existing strong position in Google, we believe Meta (NASDAQ:) is an important additional ASIC customer for AVGO,” they added.
Melius Research, AMD PT raises estimates
AMD has been one of the most popular AI stocks over the past year or so, but analysts at Melius Research believe it has more to offer.
The broker raised its forecasts for the chipmaker, citing improving near- and long-term prospects for data centers. The price target was also raised from $192 to $265.
The introduction of AMD’s MI300X AI chips is expected to greatly benefit from the new “inference phase” of AI, which requires large-scale, high-bandwidth memory. Melius noted that this stage will require significant high-bandwidth memory, with supply expected to increase each quarter of this year.
“With Microsoft (NASDAQ:) as the anchor and other clouds currently trending higher, AMD could generate further upside in AI compared to previous expectations (already 2x in 2024) ),” said the company’s analysts.
“Check also shows that traditional server CPU sales are improving with better fundamentals and solid execution. Please repeat purchase rating,” they added.
Mizuho raises price targets for ARM, NVDA, AMD, and AVGO
On Wednesday, Mizuho Securities analysts took a long-term view on the AI and custom silicon landscape, highlighting Arm’s expansion into the mobile and data center (infrastructure) space.
Despite Arm’s impressive post-IPO performance, analysts believe the chipmaker’s stock has the potential for further growth. As a result, Mizuho raised its price target for ARM from $100 to $160, implying an upside of about 20% from current levels “taking into account further upside in custom silicon and mobile.” said analysts.
“As ARM’s lock-up deadline approaches on March 12, we see strategic investors continuing to hold ARM given its attractive long-term roadmap,” Mizuho wrote. .
At the same time, the broker raised its price targets for Nvidia, Broadcom, and AMD to $1,000, $1,550, and $235, respectively.
“NVDA remains the biggest near-term AI winner, with AMD and AVGO also benefiting greatly,” the analyst said.
Palantir’s AIP platform is a “launching pad for AI use cases” – Wedbush
Wedbush analysts raised their price target on Palantir (NYSE:) to $35 from $30 earlier in the week.
They said their latest assessment of the big data analytics software maker comes amid the belief that the company’s Artificial Intelligence Platform (AIP) foundation is “starting to be seen as a ‘starting point for AI use cases’ by many US companies.” He said it is becoming more and more positive. I wrote it in my memo.
“As the AI revolution rapidly moves toward major use cases and adoption stages, Palantir, with its flagship AIP platform and countless customer bootcamps, is poised to monetize the tsunami of enterprise spending rapidly hitting the technology sector. “In our opinion, we are in the best place to do so,” they added.
Given its strong product portfolio powered by AI capabilities, Palantir, dubbed the “Messi of AI” by Wedbush, has a significant stake in the projected $1 trillion AI global total addressable market (TAM). Analysts pointed out that there is a possibility of securing this portion.
This promise is based on rapid adoption by business and government ecosystems seeking efficient platforms to automate complex workflows.
