Analyst Moves in AI (Week Overview)

Investing.com reports on significant analyst activities in artificial intelligence (AI) this week.

Microsoft Investors in 'Wait and See Mode'

Microsoft's earnings and guidance have led RBC Capital Markets to note that investors are cautious, adopting a 'wait-and-see' approach. Microsoft announced plans to boost capital expenditures for its AI investments, buoyed by successes with Azure and its collaboration with OpenAI. Despite Azure's first-quarter revenue growth of 33%, the CFO cautioned about expected growth slowing to 31%-32% in the next quarter. RBC forecasts a stronger second half, anticipating growth acceleration for Azure to 34%-35%.

Nvidia Pullback Viewed as 'Opportunity'

Wedbush and Raymond James are bullish on Nvidia despite potential short-term volatility as it approaches its earnings report. Wedbush raised its price target to $160, citing strong continued AI spending. Raymond James, however, noted supply-side difficulties that could limit short-term gains but remains optimistic about Blackwell GPU shipments ramping up in 2025.

Tesla Seen as 'Must-Own Stock'

Following Donald Trump's election win, Tesla has regained favor among investors, transitioning from prior weakness to being viewed as a 'must-own stock'. JPMorgan noted increasing production prospects and recent earnings signals suggest improving revenue cycles.

Dell's Price Target Raised on AI Server Strength

Morgan Stanley raised Dell's price target from $135 to $154, emphasizing its growing AI server business, projected to generate significant revenue in fiscal 2026. Despite potential margin pressure, analysts are confident in Dell's long-term performance.

Semiconductor Stock Weakness Nearing End

Citi analysts indicated that the semiconductor sector's decline may be subsiding, advising investors to buy as the market looks towards 2025 growth drivers. Concerns over EPS estimates dropping are noted, but positive trends in industrial markets and AI spending present future prospects. Citi recommends stocks like AMD, Nvidia, and Broadcom as strong buys.