Weekly Roundup: Top Analyst Moves in AI and the Impact on Stocks


This week’s most prominent analyst assessments in the field of artificial intelligence (AI) includes upgrades for Apple Inc and IBM by Bank of America and Evercore ISI respectively. InvestingPro subscribers have priority access to these valuable market-moving AI analysis comments. While the former benefits from AI advancements and Vision Pro devices, the latter gets recognized for its potential in deploying AI tools to enhance productivity. Furthermore, chipmakers continue to receive analyst preference, with Marvell Technology and Broadcom attaining significant mentions. Dell’s positive outlook remains steady at Bernstein despite a 62% relative outperformance in 2023, and Baidu Inc gets rated as ‘the best AI play in China’ by Morgan Stanley.

The most significant analyst movement in artificial intelligence (AI) this week is highlighted here.

InvestingPro subscribers are always the first to know about AI analyst comments that have the power to move the market.

Apple gets an upgrade from Bank of America

Analysts at Bank of America anticipate Apple Inc (NASDAQ:) to benefit from AI progress and Vision Pro devices. They also foresee an impending end to negative EPS estimate revisions.

As a consequent response, the analysts upgraded AAPL’s stock rating to Buy from Neutral and increased the price target to $225 per share.

Reasons for this upgrade include a multi-year iPhone upgrade cycle driven by need for the latest hardware to enable generative AI features, higher growth in services, stable to higher GM over time, etc.

The anticipation of AI features could induce institutional investors to increase positions, providing further stability and promising returns.

new year

IBM gets a raise at Evercore ISI

Evercore ISI analysts raised the rating on IBM (NYSE:) stocks to Outperform, anticipating messy and complicated AI deployments that IBM could navigate successfully.

They predict that IBM can provide a solution to data security concerns and help enterprises deploy AI tools more seamlessly.

The revised price target on IBM stock is now $200 per share.

Continued analyst enthusiasm for chipmakers

Marvell Technology Inc (NASDAQ:) has been moved to Top Pick by Citi analysts due to several AI-related advantages.

Analysts foresee a positive stock setup in 2024 with continuing AI optics growth and other potential gains.

Meanwhile, Broadcom Inc (NASDAQ:) was reinstated at Buy by Goldman Sachs analysts who expect strong double-digit revenue growth in the company’s AI-related businesses.

Other analysts have also increased their price targets on Qualcomm Incorporated (NASDAQ:) stock.

With a strong product roadmap and increasing Android smartphone inventory levels, they envision accelerating revenue and EPS growth in the future.

Bernstein sees a bright future for Dell

Despite a robust 62% relative outperformance in 2023, Bernstein’s positive stance on Dell Technologies Inc (NYSE:) remains intact. Analysts maintain an Outperform rating with a $90 price target.

Dell is acknowledged as a best-in-class operator with structural advantages that include its direct distribution model, scale and corporate relationships, and strong free cash flow conversion.

Besides, analysts see AI servers as a potential revenue opportunity for Dell, projecting significant YoY AI server growth.

Baidu – ‘Best AI play in China’ as per Morgan Stanley

Morgan Stanley analysts predict a 7% YoY increase in core revenue for Baidu Inc (NASDAQ:), considering a weak macro environment for Q4.

Cloud growth is expected to surge by 10% YoY due to additional AI contributions, leading to stable margins through disciplined cost management.

Analysts vouch for Baidu as the ‘best AI play in China’.

new year

These AI successes and advancements can significantly impact trading and forex, with the most important assets being AI companies such as Apple, IBM, Marvell Technology, Broadcom, Qualcomm, Dell, and Baidu Inc.

PIP Penguin