Microsoft seen as a top stock with strong AI growth, HPE upgraded by analysts
From Investing.com: 2024-12-08 03:57:53
Analysts at Bernstein reiterated an Outperform rating on Microsoft, setting a price target of $511. They highlighted Microsoft’s expanding AI revenue, expected to surpass a $10 billion run rate. The AI business is centered around SaaS-based Copilots and Azure AI, offering stable revenue and attractive margins. Bernstein remains optimistic about Microsoft’s long-term growth potential despite recent stock stagnation.
Bank of America raised Tesla’s price target to $400, citing strong growth confidence post-visit to Giga Texas factory. They reiterated a Buy rating, noting advancements in Full Self-Driving technology and AI compute. Tesla showcased autonomous navigation capabilities and plans for a robotaxi launch, supported by 50,000 H100 chips.
HSBC initiated coverage on Broadcom with a Hold rating and $160 price target, citing limited upside to FY25 earnings amid slowing growth in key segments. Concerns include decelerating momentum in ASIC revenue and challenges to keep pace with competitors like NVIDIA and AMD. Valuation and potential risks in FY26 are flagged as well.
Citi upgraded Hewlett Packard Enterprise to Buy from Neutral, citing strong AI-driven growth and improving business fundamentals. The price target was raised to $26, highlighting the company’s solid performance in AI and robust pipeline. Recovery in networking and expectations of EPS accretion post Juniper acquisition are positive factors for HPE’s growth trajectory.
BofA Securities double upgraded Credo Technology from Underperform to Buy post-strong Q3 results. The stock surged over 30% in premarket trading, leading to a significant increase in price objective to $80. BofA raised EPS estimates for FY26 and FY27, attributing the adjustment to Credo’s shift towards a more profitable growth model and expanding product portfolio in AI technologies.
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