Nvidia Upgraded by New Street: An Opportunity Amid a Pullback
New Street Research has upgraded NVIDIA Corporation to a Buy rating, setting a target price of $120. This decision comes after a significant decline in Nvidia's stock since June, presenting what analysts see as a favorable opportunity to increase exposure to the company. The recent dip is partially due to potential delays in the release of its Blackwell chip, which could affect shipment timelines until early 2025. Experts note that Nvidia might counter this by extending the lifecycle of its existing Hopper chip or introducing a simplified version of Blackwell, which could still offer performance improvements. Moreover, Nvidia's strong market position in the data center sector, despite competition from companies like AMD, supports a positive long-term outlook. Analysts expect a 30% growth in AI infrastructure spending by 2025, driving semiconductor spending upward by 50% annually.
Intel Downgraded by Mizuho: Challenges Ahead
Mizuho has downgraded Intel Corporation from Outperform to Neutral, cutting the price target to $22. The downgrade reflects Intel's struggles in the AI, data center, and PC markets, where it continues to lose ground to competitors. Despite launching new products like the Gaudi 3 for AI, Intel faces execution risks and internal challenges, such as workforce reductions and dividend cuts, impacting investor confidence.
Super Micro Computer Downgraded by BofA: Margin Pressures
Bank of America has adjusted its rating on Super Micro Computer to Neutral from Buy, citing disappointing gross margins for its fiscal fourth quarter. While revenue forecasts exceeded expectations, margin constraints are expected to persist short-term due to competitive pricing and component availability issues. Analysts lowered their price target from $1,090 to $700, reflecting broader sector valuation trends.
Palantir and Microsoft Partnership: A New AI Venture
Palantir and Microsoft have announced a collaboration to develop a technology suite for the U.S. Defense and Intelligence Community. This partnership will integrate Palantir's AI platforms with Microsoft's cloud capabilities, enabling secure AI and analytics tools for government use. Analysts at Wedbush view this as a major step forward for Palantir's AI strategy within the federal sector.
Citi Reiterates Micron as Top Pick: Strong DRAM Prospects
Amid challenges in the semiconductor market, Citi maintains a positive outlook on Micron Technology, citing robust DRAM market conditions. Despite volatility, the DRAM sector shows signs of resilience, with a forecasted 62% increase in pricing due to constrained supply and shifts towards high-bandwidth memory. Analysts believe Micron is well-positioned to benefit from these trends, anticipating positive earnings guidance.
