Tuesday, May 21, 2024

Apple’s AI Strategy Puzzles Investors: 5 Major Analyst Moves Unveiled

Investors are grappling with Apple’s AI approach, as five significant analyst moves in artificial intelligence (AI) unravel this week.

Evercore ISI analysts express optimism about Apple’s cautious AI strategy. Unlike competitors, Apple (NASDAQ:AAPL) has taken a measured approach to AI, leaving investors puzzled. The tech giant views AI as a means to enhance its existing ecosystem, rather than an existential threat. According to Evercore, Apple aims to improve user experience and ecosystem stickiness through edge deployment of AI, potentially triggering an iPhone super cycle. Detailed white papers and increased transparency shed light on Apple’s AI strategy, with the upcoming WWDC expected to provide further insights.

Meanwhile, Mizuho analysts declare Google (NASDAQ:GOOGL) the “clear winner” in the AI revolution, following the company’s robust earnings report. Google’s revenue surged to $80.54 billion, marking a 15% rise from the previous year. The tech giant also announced its first-ever dividend and a $70 billion buyback program, propelling its shares sharply upwards.

UBS analysts raised their target price for Nvidia (NASDAQ:NVDA) stock from $1,100 to $1,150, maintaining a Buy rating. Despite potential shipment timing delays for Blackwell, UBS believes that the demand for Nvidia’s GPU microarchitecture, Hopper, remains strong. The firm raised its revenue and EPS estimates for CY25, anticipating a revenue of $175B and EPS of $41.

CFRA Research upgraded Qualcomm (NASDAQ:QCOM) from Hold to Buy, with a target price increase from $155 to $200, following the chip manufacturer’s strong fiscal Q2 earnings. Qualcomm benefits from growing demand in China and the introduction of Windows AI PCs.

In contrast, Morgan Stanley trimmed its price target for Advanced Micro Devices (NASDAQ:AMD) from $193 to $177 but maintained an Overweight rating. While Morgan Stanley remains constructive on AMD’s long-term prospects, concerns linger about the company’s earnings amidst mixed conditions in its core business and longer-term questions in AI.

Related Articles

Latest Articles

Most Popular