Investing.com — This week brought some significant analyst moves in the field of artificial intelligence (AI).
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Rosenblatt downgrades Google stock amid rising transition risk
Alphabet (NASDAQ:) stock was downgraded by a Rosenblatt analyst from Buy to Neutral due to various transitional risks. The analyst suggested stepping back to observe how the company manages these challenges.
The risks identified for the tech giant include the impact of AI on search, potential search ad revenue decline due to AI Overviews, emerging evidence of search share loss to Bing, and the shift of search ad revenue to retail media networks.
Additionally, the analyst pointed out Amazon’s aggressive entry into video advertising, which could impact ad sales dynamics at YouTube. There is also a concern that competitive dynamics might lead Alphabet into a higher capex spending cycle for AI.
Truist on Nvidia: ‘Number one can become number one-er’
NVIDIA Corporation (NASDAQ:) recently claimed the top spot in market valuation. Truist Securities analysts believe that the company can further strengthen its position.
Even though Nvidia briefly lost the top spot after a decline in shares, Truist analysts are optimistic about its potential. They discussed the challenges related to maintaining the #1 market cap position but emphasized that historical data shows top companies eventually outperforming the market.
Rosenblatt ups Apple to Buy, says privacy-focused AI can boost market share
Apple Inc (NASDAQ:) stock was upgraded to Buy by Rosenblatt Securities this week. The decision was based on the company’s privacy-focused Apple Intelligence platform, which is expected to enhance its market share in the AI sector.
A survey conducted by Rosenblatt indicated that privacy is a key feature sought by US consumers in AI technology. With Apple’s strong focus on privacy and specialized large language models, the company is well-positioned to gain market share.
Analysts raise price targets on Micron despite post-earnings decline
Micron Technology Inc (NASDAQ:) saw a decline in shares after its latest quarterly results. However, analysts at Citi and JPMorgan remain positive about the company’s prospects.
Citi reiterated a Buy rating with a price target of $175 for Micron stock, emphasizing the DRAM upturn thesis and projected revenue growth. JPMorgan highlighted Micron’s capacity for memory content demand driven by AI and server deployments, expecting the stock to outperform in the coming years.
Stifel starts Tesla at Buy, sees strong potential in AI-based FSD
Stifel initiated coverage on Tesla Inc (NASDAQ:) with a Buy rating and a price target of $265.00. They anticipate significant growth for Tesla, particularly from 2025 to 2027, driven by AI-based Full Self-Driving (FSD) initiatives.
While optimistic about Tesla’s future, Stifel analysts highlighted near-term risks such as delivery levels, EV adoption challenges, and uncertainties surrounding the U.S. election.
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