Evercore ISI analysts have recommended buying Nvidia stock due to the company’s strong demand for systems and chips. Despite worries about delays in the release of the Blackwell system, the investment bank believes that Nvidia is well-positioned to overcome any disruptions. The analysts mentioned that even if Blackwell faces delays, the demand for the current generation Hopper solutions remains high, especially among Tier 2 and 3 Cloud Service Providers (CSPs) and enterprises. This assurance is based on the company’s history of resilience in developing alternative solutions when faced with product disruptions in the past. Evercore continues to view Nvidia as a top pick in the computing sector, projecting that the company could achieve significant earnings per share by 2030. The analysts have raised their estimates for Nvidia’s third-quarter performance and set a higher target price for the stock.
MoffettNathanson analysts have acknowledged Apple’s strong AI strategy but believe that the market has already priced in these developments. Despite concerns about Apple lagging in AI in the past, the firm notes that the market has consistently shown confidence in the company’s approach. The analysts emphasized that Apple’s AI strategy leverages the trust of its users, particularly in handling personal data, and could drive an iPhone upgrade cycle. However, they caution that the potential impact of this cycle is already reflected in the stock valuation. MoffettNathanson sees Apple as a hardware provider primarily, with its AI functionalities aimed at enhancing user experience and driving upgrades. The firm initiated coverage of Apple with a Neutral rating and set a price target, indicating a bearish outlook without factoring in potential gains from AI Search initiatives.
Edward Jones analysts have initiated coverage of Advanced Micro Devices with a Buy rating, citing multiple catalysts for significant growth in the coming years. One key factor behind the optimistic outlook is the rising demand for data center infrastructure, which is expected to drive sales of AMD’s GPUs and CPUs. The firm sees potential for cross-selling opportunities following AMD’s acquisition of Xilinx, and the early stages of integrating their product offerings. Edward Jones believes that the positive outlook for AMD is not fully reflected in the share price, presenting an attractive investment opportunity. The analysts highlight the potential for a prolonged upgrade cycle in the PC market driven by AI-enabled PCs as another factor supporting AMD’s growth.
Bank of America analysts issued a double downgrade on Silicon Motion Technology due to expectations of limited growth following the upturn in the first half of 2024. The company’s guidance for the second half indicates minimal top-line growth compared to the previous quarter. BofA highlighted that SIMO’s revenue primarily comes from controller IC chips for NAND products, setting it apart from competitors like Samsung Electronics and SK Hynix. The analysts have reduced their EPS estimates for the second half of 2024 and 2025, driven by lower revenue and operating margin assumptions. The low exposure to AI and enterprise SSDs has contributed to the limited growth outlook for SIMO, leading to a reduced price objective by Bank of America analysts.
Bernstein analysts downgraded Baidu from Outperform to Market Perform following the company’s latest earnings report, citing increasing disruption and reduced clarity on future prospects. The firm lowered its Search growth expectations and cut the price target for Baidu stock, anticipating the stock to trade sideways. Despite positive indications from AI Cloud and Robotaxi initiatives, Bernstein analysts believe that the company’s Search results need to show improvement for the stock to gain momentum. The analysts expect Baidu shares to remain under pressure without a revival in Search performance, indicating a bearish outlook on the stock.
The analyst moves in the field of artificial intelligence for this week highlight both optimism and caution across different companies. While some analysts are bullish on companies like Nvidia and Advanced Micro Devices due to strong demand and growth catalysts, others like Apple and Baidu face challenges in translating their AI strategies into significant stock price gains. It is important for investors to carefully consider these analyst opinions and conduct their own research before making investment decisions in the AI sector.