5 major analyst AI moves: Apple Top Pick, C3.ai stock upgraded
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‘AI-enabled upgrade is coming:’ Apple reiterated as Top Pick at BofA.
Apple (NASDAQ: AAPL) remains Bank of America’s Top Pick, with a price target of $230. Wall Street giants are particularly optimistic about Apple’s shift from smartphones to “IntelliPhones,” they’re projecting a massive upgrade cycle that spans multiple years. “We view the upcoming AI-enabled phones (IntelliPhones) to drive a multi-year upgrade cycle similar to the step function improvement driven by the introduction of smartphones,” according to the document.
According to BofA’s experts, adopting IntelliPhones with artificial intelligence capabilities will outpace the fast adoption of smartphones and 5G. More than four billion smartphones are already in use. Among the many anticipated capabilities of IntelliPhones that will use cutting-edge AI and ML are improvements to personal assistance, language processing, health monitoring, photography, and augmented and virtual reality experiences.
Needham downgrades UiPath stock.
On Thursday, 5 major analyst AI moves at Needham downgraded UiPath (NYSE: PATH) shares from Buy to Hold, citing several reasons, such as shifting go-to-market (GTM) strategies and macroeconomic challenges. “Macroscopic pressure, uncertainty regarding near-term execution as a result of a CEO change and a shifting GTM strategy, and Y/Y margin compression resulting in an unfavourable near-term financial profile,” analysts wrote, downgrading PATH shares to Hold.
Large purchases are being scrutinized more closely, and the investment firm found the company’s Q1F25 sales data to be moderately disappointing. Expect sales difficulties shortly due to the recent change in CEO to creator Daniel Dines, following Rob Enslin’s resignation, and multiple changes to GTM. According to Needham, the revised net new annual recurring revenue (ARR) and revenue estimate are “conservative enough.” Still, it will be several quarters before the GTM modifications significantly impact the guidance.
Northland ups C3.ai to Buy amid accelerating subscription growth.
Northland analysts upgraded C3.ai (NYSE: AI), an enterprise AI firm, from Market Perform to Outperform and set a $35 target price for its shares over the week. A vital component that analysts cited as driving the increased revision was the company’s increasing subscription growth in Q4 2024. “C3.ai posted accelerating subscription growth to 41% in 4Q24, providing evidence that the headwinds from a migration to a usage-based revenue model are abating,” experts said. They went on to say that the demand for generative AI (gene) and the significant increase in pilot programs indicate an ongoing upward trend in growth.
Mizuho hikes price targets on chip stocks as AI moves to the edge
Micron Technology (NASDAQ: MU), Qualcomm (NASDAQ: QCOM), Seagate Technology PLC (NASDAQ: STX), and Western Digital (NASDAQ: WDC) were among the chipmakers whose price targets were raised this week by the Japanese investment banking and securities firm Mizuho. This comes at a time when Mizuho 5 foremost analyst AI moves predict that original equipment manufacturers’ (OEMs) quest for AI on-device capabilities for cellphones and PCs will be the next trigger for AI at the edge.
The firm has raised its price projections for Micron ($240), Qualcomm ($155), Seagate ($90), and Western Digital ($110), all of which are Buy ratings. Analysts have focused on two things: the anticipated rise in shipments of AI smartphones and Qualcomm’s ramp-up with AI PCs utilizing Snapdragon X Elite. Furthermore, AI PCs are a boon for Micron since they want 40–80% more DRAM, and cellphones need 50–100% more DRAM.
An increase in the percentage of NAND in AI devices should also lead to better prices for Western Digital and Micron. Seagate distinguishes itself due to its growing cloud capital investment and extensive PC storage content. Between 2024 and 2027, Mizuho predicts that 1 billion AI smartphones will be shipped. By 2027, they expect AI PCs to make up as much as 60% of the PC market.
Dell is a ‘legit GenAI participant,’ says Loop Capital
Loop Capital’s analysts have raised their price target for Dell Technologies (NYSE: DELL) shares from $125 to $185 and reaffirmed the stock’s Buy rating in a recent note to clients. The analysts emphasized that Dell is “progressing as a legit GenAI participant.” “Dell continues to show legitimate GenAI progression in the last 90 days, which could seemingly progress through CY2025,” analysts from Loop said. The investment firm highlighted Dell’s improving position regarding long-term commercial IT budget share, mentioning its growing competence in infrastructure goods, services, and investments. If GenAI servers generate $1 in revenue, Dell might make $2 to $3 more in services, networking, and storage.
“Regarding storage in particular, our research has indicated that DELL storage could be in a position similar to, or even better than. PSTG and NTAP for commercial (non-Hyperscale) Gen AI storage,” the five foremost analysts AI moves stated. Analysts have also noted that in the past three months, Dell has dramatically increased inventory by pre-purchasing. More than $7 billion of GPUs from NVIDIA (NASDAQ: NVDA). In line with its projected Generative AI revenue of $9 to $10 billion in 2024 and perhaps $15 billion in 2025. Dell anticipates securing GPUs worth $10 to $15 billion over the following six quarters. Estimates for generative AI server revenue in 2024 are currently pegged at approximately $5 billion. In late 2024 and 2025, Dell’s primary commercial market exposure is projected to expand. Even though PC sales and market share have dropped slightly.