Stock Market News

5 big analyst AI strikes: Bullish on Microsoft and Google; AMD cut

2024.02.04 10:51


© Reuters

Here are the largest analyst strikes within the space of synthetic intelligence (AI) for this week.

InvestingPro subscribers all the time get first dibs on market-moving AI analyst feedback.

GOOGL nonetheless seen as ‘net AI beneficiary’ regardless of blended quarter

Earlier within the week, BofA Securities analysts commented on Alphabet’s (NASDAQ:) newest earnings report. The dealer famous that the tech big failed to fulfill larger expectations, though the corporate exhibited accelerating development throughout all key enterprise segments.

Moreover, analysts imagine that the Google proprietor will proceed to capitalize on the continuing AI increase.

“While quarter didn’t deliver on high expectations, with accelerating growth across all major business lines, & commentary suggesting positive impact from Gen-AI integrations, and a strong base of AI assets, we continue to believe Alphabet will be a net AI beneficiary,” analysts wrote.

“We assume cleaner expense quarters (much less restructuring and authorized) are additionally doubtless in ‘24. We slightly lower our PO to $173 (from $175) based on relatively stable EPS and unchanged 21x 2025 P/E multiple, and lower estimated cash balance,” they added.

Subscribe Now for Up to 50% Off!

Morgan Stanley ‘firmly’ obese on MSFT

Morgan Stanley analysts confused that with its newest quarterly outcomes, Microsoft Corporation (NASDAQ:) as soon as once more proved it is among the leaders in generative AI, exhibiting a “unique ability to monetize this technology.”

“With this innovation cycle just getting started and investors already getting rewarded with 23% YoY EPS growth in FY2Q24 and further positive EPS revisions for FY24, we remain firmly OW,” the observe states.

This prime place for the forthcoming GenAI wave, mixed with efficient administration and top-tier price effectivity, firmly backs Morgan Stanley’s prediction of an 18% compound annual development charge in earnings per share (EPS) via fiscal 12 months 2026, analysts mentioned.

Raymond James downgrades AMD on valuation

Meanwhile, Raymond James downgraded Advanced Micro Devices Inc (NASDAQ:) to Outperform from Strong Buy, whereas elevating the worth goal to $195 from $190.

The ranking cut comes resulting from valuation.

“At 33x 2025E EPS, our analysis suggests that the stock is already discounting ~20% unit share for AI GPUs (MI300), which is closer to our bull case,” Raymond James analysts mentioned.

“Stock discounting $7 EPS: MI300 ramps are in early stages, and we expect multiples to compress as revenue accelerates. Assuming AMD will trade at a similar P/E as NVDA (26x on CY25) implies that the stock is discounting ~$7 EPS for 2025 vs. consensus of $5.33.”

The funding agency expects AMD’s core enterprise to generate earnings of $3.5 to $4 per share in 2025. To obtain this, AI graphics processing items (GPUs) should add greater than $3 to the EPS, which corresponds to income of roughly $12 billion or gross sales of round 800,000 items, it famous.

BofA hikes Nvidia PT to $800 amid ‘compelling valuation’

Ahead of its earnings report scheduled for Feb. 21, Bank of America analysts raised the worth goal on NVIDIA Corporation (NASDAQ:) to $800 from $700 on Friday. The financial institution reiterated its Buy ranking and Top Pick standing on the inventory, citing “compelling valuation.”

Notably, analysts anticipate a big but reasonable enhance of three% to 5%, or $500 million to $1 billion, in each the reported FQ4 outcomes and the FQ1 steering.

These estimates are largely based mostly on beneficial properties from extra provide, though that is partly counterbalanced by limitations in China and some transitional impacts earlier than the launch of the B100 accelerator, which is scheduled for the second half of 2024.

“While a 3-5% beat would pale vs. the 10%/22% beat/raise of prior quarters and perhaps disappoint some bulls, the more measured pace will also be seen as creating more fertile ground for continued growth in CY25 and beyond,” wrote analysts.

Jefferies nonetheless bearish PLTR, prefers different AI names

On Wednesday, Jefferies analysts reaffirmed an Underperform ranking and $13.00 value goal on Palantir Technologies Inc (NYSE:).

The setup for the fourth quarter presents a blended image, Jefferies mentioned, that includes a difficult goal for business development that means the largest quarter-over-quarter rise in additional than 8 quarters, alongside extra “tempered expectations” for presidency sector development.

“Investor sentiment remains sharply negative and our biggest concern is multiple digestion (shares trade at 14x/11x CY24E/CY25E rev; $13 stock = 10x/9x CY24E/CY25E rev) and that the stock already embeds expectations for upside from AIP. We prefer other names for AI exposure,” they mentioned within the observe.

Subscribe Now for Up to 50% Off!

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 56,774.21 4.20%
ethereum
Ethereum (ETH) $ 3,251.39 2.05%
tether
Tether (USDT) $ 1.00 0.04%
bnb
BNB (BNB) $ 395.48 1.73%
solana
Solana (SOL) $ 108.62 0.37%
staked-ether
Lido Staked Ether (STETH) $ 3,246.35 2.02%
xrp
XRP (XRP) $ 0.581019 5.57%
usd-coin
USDC (USDC) $ 1.00 0.15%
cardano
Cardano (ADA) $ 0.624086 0.57%
avalanche-2
Avalanche (AVAX) $ 39.23 0.74%
dogecoin
Dogecoin (DOGE) $ 0.097899 11.04%
tron
TRON (TRX) $ 0.142409 1.78%
chainlink
Chainlink (LINK) $ 19.09 0.06%
polkadot
Polkadot (DOT) $ 8.29 3.15%
matic-network
Polygon (MATIC) $ 1.03 3.47%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 56,776.21 4.09%
uniswap
Uniswap (UNI) $ 10.69 1.72%
the-open-network
Toncoin (TON) $ 2.15 0.49%
shiba-inu
Shiba Inu (SHIB) $ 0.000011 9.30%
internet-computer
Internet Computer (ICP) $ 12.88 0.07%
bitcoin-cash
Bitcoin Cash (BCH) $ 295.07 7.35%
litecoin
Litecoin (LTC) $ 74.22 3.01%
dai
Dai (DAI) $ 1.00 0.14%
immutable-x
Immutable (IMX) $ 3.35 0.67%
cosmos
Cosmos Hub (ATOM) $ 11.31 2.00%
blockstack
Stacks (STX) $ 2.88 1.96%
near
NEAR Protocol (NEAR) $ 3.92 5.87%
ethereum-classic
Ethereum Classic (ETC) $ 28.14 1.38%
leo-token
LEO Token (LEO) $ 4.35 0.55%
filecoin
Filecoin (FIL) $ 7.62 5.09%
bittensor
Bittensor (TAO) $ 605.37 0.46%
kaspa
Kaspa (KAS) $ 0.166812 2.00%
hedera-hashgraph
Hedera (HBAR) $ 0.108225 4.62%
aptos
Aptos (APT) $ 9.87 3.83%
optimism
Optimism (OP) $ 3.69 3.62%
vechain
VeChain (VET) $ 0.048255 3.31%
injective-protocol
Injective (INJ) $ 39.58 7.14%
stellar
Stellar (XLM) $ 0.122076 3.74%
first-digital-usd
First Digital USD (FDUSD) $ 0.997517 0.12%
lido-dao
Lido DAO (LDO) $ 3.47 4.99%
okb
OKB (OKB) $ 51.49 1.08%
mantle
Mantle (MNT) $ 0.900572 2.34%
celestia
Celestia (TIA) $ 17.02 1.66%
crypto-com-chain
Cronos (CRO) $ 0.103257 5.39%
render-token
Render (RNDR) $ 7.23 2.41%
the-graph
The Graph (GRT) $ 0.279018 4.28%
monero
Monero (XMR) $ 137.37 4.39%
arbitrum
Arbitrum (ARB) $ 1.89 3.00%
sei-network
Sei (SEI) $ 0.86868 2.30%
maker
Maker (MKR) $ 2,155.76 2.98%