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Here are the biggest analyst moves in the artificial intelligence (AI) space this week.
investment professional Subscribers are always the first to know what market-moving AI analysts are saying.
Jeffries was impressed. arm AI momentum is expected to continue
UK-based semiconductor maker Arm Holdings ADR (NASDAQ:) has soared 60% over the past week as investors scramble to buy shares following its impressive third-quarter results and guidance. did.
Amid this optimism, Jefferies analysts raised their expectations for ARM, raising their price target from $98 to $115.
“Better-than-expected third-quarter results and fourth-quarter guidance support our view that ARM is a key beneficiary of growing demand for edge AI devices, particularly premium smartphones,” they said. Ta.
“Royalty growth is expected to accelerate as the transition to devices using the V9 architecture, which has twice the royalty rate of V8, accelerates. AI is also expected to drive increased chip design activity. As a result, licensing revenues are also increasing.”
Morgan Stanley raises Nvidia forecasts, citing 'very strong near-term outlook'
The excitement surrounding NVIDIA Corporation (NASDAQ:) continues unabated.
Despite surging 50% since early 2024, Wall Street is convinced that NVDA, a central figure in the ongoing AI boom, has more to offer.
On Wednesday, Morgan Stanley analysts raised their expectations for the chipmaker, citing a “very strong near-term outlook.” In the longer term, cloud comments remain encouraging, but the broker expects a plateau in 2025.
“Despite enthusiasm for substitutes, we remain very comfortable with competitive dynamics,” the analysts wrote in a note.
“The outlook for 2025 is more challenging. We expect another very strong training year, which will drive an increase in training, which already accounts for more than 30% of 2024 cloud budgets. It remains to be seen whether this will happen,” they added.
Bernstein Analyst: 2024 will be a make-or-break year for Baidu
Elsewhere, Chinese technology and AI giant Baidu (NASDAQ:) faces a make-or-break year, Bernstein analysts say.
Specifically, the company is working to expand AI capabilities across its business operations in the face of increasing competition from AI enhancements.
Analsyts said there are three main aspects to Baidu's AI strategy that investors should consider to confirm or refute the investment rationale.
First, Baidu needs to secure additional advertising revenue through search optimization in mature markets, which requires significantly expanding market share and improving conversion rates.
Second, the success of a modernized AI-integrated app is essential to increasing user engagement and moving toward transaction-based monetization, which requires an outstanding app experience.
“To succeed here, Baidu must demonstrate its ability to flawlessly execute a 'killer' app experience and drive CPS user engagement (an area where it has not been successful to date),” they wrote. I am.
Finally, in the cloud space, Baidu's ability to maintain its lead will depend on the ability of its QianFan AI developer platform to appeal to developers, differentiate itself without getting caught up in price competition, and increase cloud market share. It depends on whether you can move it to your advantage.
BofA raises Palantir PT to $24 due to strong AI demand
Earlier this week, BofA Securities analysts raised their price target. Palantir Technologies Inc (NYSE:) from $21 to $24 and reiterated a Buy rating.
Mora noted that U.S. commercial sales increased significantly during the fourth quarter, adding 40 new customers, and noted that Palantir's AI platform (AIP) is “still in its early stages and is already in meaningful shape.” “I am contributing,” he said.
“We expect this momentum to continue. This impressive growth is driven by Palantir’s unique position in enabling AI-powered, data-driven decision-making in a tangible, accessible, and operational way. We think this is a manifestation,” the analyst said.
Additionally, the potential for growth within the United States Government (USG) sector remains significant.
As software becomes increasingly essential to military operations, major contractors appear to be falling behind. USG's sales growth is expected to be driven by a variety of factors, including a robust portfolio of ready-to-deploy solutions to meet rapid demand for software and deepening customer relationships, among other things.
Citi is bullish on Google's Gemini Ultra, raises price target
Google owner Alphabet Inc Class A (NASDAQ:) this week introduced Gemini Ultra, its most advanced large-scale language model (LLM) to date.
Almost a year ago, the tech giant launched Google Bard in an effort to support OpenAI's ChatGPT. However, Mr Bird will be replaced by Gemini Ultra, who Citi analysts believe has “multiple potential benefits”.
Analysts highlighted three key benefits offered by Alphabet's new LLM. These include: 1) increased product innovation with the launch of new Gemini-based products across search, ads, and enterprise; results and a broader range of query responses. 3) A more consistent strategy with one brand across Google. ”
Analysts reaffirmed GOOGL's investment judgment as “buy” and raised the price target to $168.
