Weekly AI Financial Analyst Moves: Salesforce, UBS and Amazon Insights

Summary

    This week, several major AI-related analyst moves took place, particularly within the software stocks landscape. Among these are upgrades for Salesforce by Morgan Stanley and Wolfe Research, with anticipation for possible top-line improvements. Generative AI continues to make significant progress, potentially transforming various sectors and contributing towards new hardware development on several platforms. Additionally, UBS expects AI demand to spike from $28 billion in 2022 to $300 billion in 2027. Lastly, Amazon.com Inc remains poised to capitalize on the digital transformation and AI innovation.

Analyst Upgrades for Salesforce this Week

Salesforce Inc (NYSE:) experienced a notable upgrade earlier this week by Morgan Stanley analysts, which foresees potential drivers for the company’s top-line upside amidst low investor expectations. Strategies include price increases, product bundling, and increased adoption of Data Cloud.

Following Morgan Stanley’s lead, Wolfe Research analysts also raised their recommendation on CRM stock citing potential for double-digit upside to FCF.

Forecasting AI-Led Upside in Coming Years

According to UBS analysts, Generative AI is a disruptive technology with enormous potential to create value across a wide variety of sectors along the innovation value chain. This includes new hardware development and its functionality on platforms managed by operators and enablers.

Looking at the growth rate of AI demand, UBS’s Chief Investment Officer Americas predicts a surge from $28 billion in 2022 to a staggering $300 billion in 2027.

AI Stocks to Watch, According to Morgan Stanley

For Morgan Stanley analysts, AI sector continues to hold promising positions in the software stocks landscape. The investment bank sees the significant impacts and rewards of Generative AI outweighing the rising investor expectations that CY23 reflects.

Mentioned within the discussion are high-potential stocks such as Microsoft (NASDAQ:), Adobe (NASDAQ:), Snowflake Inc (NYSE:), Salesforce, and HubSpot Inc (NYSE:), among others.

A New Thematic Basket Introduced by Macquarie

Highlighting GenAI’s role in the converging digital and physical realities of the economic landscape, Macquarie analysts have introduced a GenAI thematic basket. This provides investors with more diversified exposure to the sector.

The list also includes Microsoft, ServiceNow Inc (NYSE:), Salesforce, MongoDB (NASDAQ:), CrowdStrike Holdings Inc (NASDAQ:), Powerschool Holdings Inc (NYSE:), and HubSpot, with ServiceNow named a Top Pick at Macquarie due to its substantial GenAI product potential.

Optimism about Amazon’s AI Prospects

With an optimistic view of Amazon.com Inc (NASDAQ:), analysts from Monness Crespi Hardt gave the company a Buy rating with a $170 price target. They believe that Amazon’s agile response to digital transformation, its ability to capitalize on emerging healthcare opportunities, innovation with AI, and leaner cost structure make it highly competitive.

The rapid growth and prominence of AI could significantly affect the financial markets and influence forex trading decisions. Increased investments and innovations in AI-related technologies and services could raise the value of associated assets.

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