Investing.com — Analyst Moves in Artificial Intelligence (AI)

Here are the biggest analyst moves in the area of artificial intelligence (AI) for this week.

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Wedbush ‘More Bullish’ on Microsoft Despite Negative Post-Earnings Reaction

Wedbush analysts expressed increased optimism towards Microsoft (NASDAQ:MSFT) stock, despite mixed reactions following its latest earnings report.
Microsoft's first-quarter results exceeded expectations, driven by a robust 34% year-over-year growth in Azure. AI growth contributed a 12% boost, highlighting solid monetization trends supporting its cloud business. Although shares fell following guidance projections of 31%-32% growth for Azure, analysts stated they disagreed with the negative interpretation, attributing weaknesses to softer PC demand and considering it “background noise” relative to Microsoft's broader growth.
Analysts emphasized that they remain bullish, highlighting Microsoft’s tech leadership amid major growth.

Barclays: Google Stock Upside ‘Somewhat Capped’

Barclays noted potential volatility for Google owner Alphabet (NASDAQ:GOOG) shares following its strong third-quarter earnings report, with revenue and earnings per share surpassing estimates. However, ongoing legal challenges and regulatory scrutiny may limit stock upside.
The analysts remarked on the smooth transition to a new CFO, yet investors seek more insight into operations. The regulatory environment’s evolution will be critical as Google plans to address Department of Justice requests, suggesting a capped upside for GOOGL shares in the near term.

Bernstein Cuts Arm Stock Rating, Says Valuation Is ‘Too Steep’

Bernstein downgraded Arm Holdings (NASDAQ:ARM) to Underperform from Market Perform, citing near-term “cyclical headwinds” impacting revenue opportunities outside AI. While the long-term outlook remains appealing, analysts expressed concerns about reliance on industries dependent on Arm’s designs, particularly amid current challenges facing tech and automaking sectors. They also revised fiscal year 2025 revenue projections and labeled the current valuation as “too steep.”

Rosenblatt Suspends SMCI Stock Rating, Price Target

Rosenblatt Securities has suspended its rating, price target, and estimates for Super Micro Computer Inc (NASDAQ:SMCI) stock amid governance and transparency issues after Ernst & Young’s resignation as its public accounting firm. The resignation raised concerns about internal controls and management independence. Analysts await further developments before reinstating their ratings.

Qorvo Stock Yet to Price in AI Premium, Needham Says

Needham & Company analysts issued a Buy rating on Qorvo (NASDAQ:QRVO), believing the stock has yet to capture the AI-driven market's potential. They set a price target of $135, highlighting Qorvo's current valuation is undervalued compared to its semiconductor peers. As AI integration in smartphones accelerates, the prospects for content gains with Apple and potential growth in the mobile market are promising, although an AI premium has yet to be reflected in Qorvo's valuation.