From Investing.com: 2024-11-17 03:57:56

Analysts at RBC Capital Markets report Microsoft investors are cautious after earnings, with concerns about AI investment costs. Azure revenue exceeded expectations but growth is expected to slow in the second quarter. RBC predicts acceleration in Azure growth in the second half of the fiscal year.

Wedbush and Raymond James analysts maintain a bullish outlook on Nvidia, citing strong AI spending and supply-side challenges. Both firms raise price targets, emphasizing any pullback as an opportunity for investors due to Nvidia’s leadership in AI and computing technologies.

JPMorgan notes a shift in investor sentiment towards Tesla, now seen as a ‘must-own stock’ following Trump’s win. Positive signs in Tesla’s latest earnings report and production growth forecast have led to a more bullish stance from hedge funds and long-only investors.

Morgan Stanley raises Dell’s price target on strong growth prospects in AI server business. Dell’s expanding role in the AI market is highlighted, with projections of increased AI server shipments and revenue for fiscal 2026.

AI servers are expected to make up nearly 20% of Dell’s revenue by 2026, driving growth. Analysts believe Dell is well-positioned to capture traditional enterprise spend and capitalize on the AI infrastructure market. Despite potential margin pressure, they are confident in Dell’s ability to sustain profitability and perform well long-term.

Citi analysts suggest that the recent weakness in chip stocks may be coming to an end, signaling a potential buying opportunity as the sector’s outlook for 2025 improves. Consensus EPS estimates for semiconductor firms dropped 11% in the third quarter, with the SOX index falling 9%. Citi projects 9% global semiconductor sales growth in 2025, driven by stabilization in industrial markets and a rebound in the automotive segment.

The bank recommends investors consider semiconductor stocks like AMD, Broadcom, Nvidia, Texas Instruments, and Micron, emphasizing AI as a growth catalyst. Major tech companies are increasing AI spending, benefiting semiconductor firms with significant AI exposure. Citi advises investors to build positions in semiconductor stocks and take a more aggressive stance in the first quarter of 2025.



Read more at Investing.com: Any Nvidia stock pullback is ‘an opportunity’ By Investing.com