5 big analyst AI moves: Microsoft and NVIDIA reign supreme
Investing.com | Author Senad Karaahmetovic
Published Nov 19, 2023 11:20AM ET
Here are the biggest analyst moves in the area of artificial intelligence (AI) for this week.
InvestingPro subscribers always get first dibs on market-moving AI analsyt comments.
Unlock the potential of InvestingPro for up to 55% off this Black Friday and never miss out on a market winner again.
h2 Microsoft’s Ignite Conference/h2Microsoft Corporation (NASDAQ:MSFT) unveiled a series of new AI products at its Ignite conference. Among the notable announcements are AI Copilots for Azure and Service.
The Redmond-based tech titan is also working on internally designed semiconductors tailored for both AI and general-purpose workloads.
“Microsoft continues to be a first mover in bringing generative AI to customers, and the progress highlighted at Ignite today affirms our outlook that the company can continue to capitalize on the expanding opportunity it has in front of them,” Barclays analysts said.
h2 Nvidia’s new super chip/h2NVIDIA Corporation (NASDAQ:NVDA) announced the new HGX H200 AI accelerator, which is an upgrade to the current H100.
Bank of America analysts reiterated a Top Pick designation on Nvidia stock following the announcement. They highlight that H200 is compatible with its predecessor H100 installations, enabling faster time to market.
“We view [this] as critical, as hyperscalers do not need to invest to reconfigure their existing hardware platform, incentivizing customers to remain key partners of NVDA,” analysts wrote.
Meta could be GenAI winner in 2024 - Morgan Stanley/h2
Morgan Stanley analysts discussed potential GenAI winners in 2024 with Meta Platforms Inc (NASDAQ:META) seen as a strong mega-cap candidate.
“We continue to follow the multi-year phasing of investing in tech cycles (semi-conductors, infrastructure, then software) but in ’24 we look for more investor focus on material incremental ROIC of AI investments. META screens the most likely candidate among the mega caps.”
Elsewhere, the analysts also flagged several smaller stocks, including Snap (NYSE: SNAP), Pinterest (NYSE: NYSE:PINS), eBay (NASDAQ: NASDAQ:EBAY), Etsy (NASDAQ: NASDAQ:ETSY), Trade Desk (NASDAQ: NASDAQ:TTD), Take Two (NASDAQ: TTWO), and ridesharing-delivery businesses like Uber (NYSE: NYSE:UBER), DoorDash (NASDAQ: NASDAQ:DASH), and Lyft (NASDAQ: NASDAQ:LYFT).
h2 MongoDB is a pure AI play - Wells Fargo/h2MongoDB (NASDAQ:MDB) is the best way to play AI, according to Wells Fargo analysts.
The analysts initiated research coverage on MongoDB with an Overweight rating and a $500 per share price target.
“We see MongoDB as the best AI play in software infrastructure given its ever-expanding list of new workloads. The company is well-positioned for solid margin expansion, which in turn will drive strong Free Cash Flow growth,” analysts said in a note.
Wedbush sees AI fueling new tech bull market/h2
Wedbush tech analysts argue that a new tech bull market has started despite investor worries about stretched valuations. They see the set-up in the sector as strong amid a "tidal wave" of AI spending.
"Heading into 2024 we believe the tech sector is set up for an acceleration of spending around cloud and AI spending that we believe is being significantly underestimated by the Street," analysts commented.
"While IT budgets are expected to be up modestly in 2024, we believe cloud and AI driven spending will be up 20%-25% over the next year with use cases now exploding across the enterprise and consumer landscape."
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.