Heading 1: Bank of America Upgrades Apple
Bank of America analysts raise rating on Apple stock to Buy, foresee boost from AI and Vision Pro devices.
Bank of America analysts have upgraded the rating on Apple Inc (NASDAQ: AAPL) stock to Buy from Neutral. They believe that Apple will benefit from the growth of AI and Vision Pro devices. In addition, they expect an end to negative EPS estimate revisions. The analysts have raised the price target for AAPL stock to $225 per share. They cite several reasons for the upgrade, including a stronger multi-year iPhone upgrade cycle driven by the need for the latest hardware to enable Generative AI features. They also expect higher growth in Services as Apple monetizes its installed base. Silicon roadmap, capital returns, stable GM, and manageable legal issues are some of the other factors they consider.
Heading 2: Evercore ISI Raises Rating on IBM
Evercore ISI analysts upgrade International Business Machines (NYSE: IBM) stock to Outperform.
Analysts at Evercore ISI have raised the rating on IBM stock to Outperform. The analysts believe that as enterprises look to deploy AI tools to enhance productivity, IBM’s unique set of consulting and software assets will help solve the bottleneck and enable customers to deploy AI tools more seamlessly on and off-premise. They expect IBM to play a key role in data security and running enterprise data on private models. The new price target for IBM stock is $200 per share.
Heading 3: Analysts Favor Chipmakers for AI Growth
Citi analysts move Marvell Technology Inc (NASDAQ: MRVL) to Top Pick, expecting continued AI optics growth. Goldman Sachs reinstates Broadcom Inc (NASDAQ: AVGO) at Buy, anticipating strong revenue growth in AI-related businesses. Canaccord Genuity analysts raise price target on Qualcomm Incorporated (NASDAQ: QCOM) stock, citing on-device generative AI and a strong product roadmap.
Citi analysts have moved Marvell Technology Inc to Top Pick, citing several AI-linked tailwinds. They like the stock setup in 2024 on continued AI optics growth, layering of custom ASIC AI project sales, and bottoming out of non-cloud markets. Similarly, Goldman Sachs analysts have reinstated Broadcom Inc at Buy, expecting strong double-digit revenue growth in the company’s AI-related businesses. Canaccord Genuity analysts have raised their price target on Qualcomm Incorporated stock, anticipating reaccelerating revenue and EPS growth with on-device generative AI and a strong product roadmap.
Heading 4: Bernstein Remains Positive on Dell Technologies
Bernstein reaffirms Outperform rating on Dell Technologies Inc (NYSE: DELL), sees AI servers as a key revenue opportunity.
Even after achieving a strong relative outperformance in 2023, Bernstein maintains a positive stance on Dell Technologies Inc. They see Dell as a best-in-class operator with structural advantages and strong free cash flow conversion. The analyst believes that AI servers present a key incremental revenue opportunity for Dell. They anticipate that Dell can achieve significant incremental YoY AI server growth, if current order activity levels continue.
Heading 5: Baidu Positioned as the Best AI Play in China
Morgan Stanley analysts project a 7% YoY increase in core revenue for Baidu Inc (NASDAQ: BIDU). They see Baidu as the best AI play in China, with stable margins through disciplined cost management.
Morgan Stanley analysts project a 7% year-over-year increase in core revenue for Baidu Inc. They expect ads to experience a 6% YoY uptick, while cloud growth is anticipated to surge by 10% YoY due to additional contributions from AI. The analysts anticipate stable margins for Baidu through disciplined cost management. They consider Baidu as the best AI play in China.
Analyst comment
News 1: Bank of America Upgrades Apple – Positive
Short analysis: The market for Apple is expected to experience a boost with the upgraded rating, as Bank of America analysts foresee growth from AI and Vision Pro devices.
News 2: Evercore ISI Raises Rating on IBM – Positive
Short analysis: The market for IBM is expected to improve as the upgraded rating, along with the company’s unique assets in consulting and software, will help meet the demand for AI deployment and enhance productivity.
News 3: Analysts Favor Chipmakers for AI Growth – Positive
Short analysis: Marvell Technology, Broadcom, and Qualcomm are expected to benefit from continued AI growth, resulting in increased revenue and strong product roadmaps.
News 4: Bernstein Remains Positive on Dell Technologies – Positive
Short analysis: Dell Technologies is expected to generate increased revenue through AI servers, as current activity levels continue and the company capitalizes on this growth opportunity.
News 5: Baidu Positioned as the Best AI Play in China – Positive
Short analysis: Baidu is projected to experience a YoY increase in core revenue, driven by AI contributions in ads and cloud. With disciplined cost management, Baidu is considered the best AI play in China.
