Tesla downgraded to Sell by UBS due to high AI costs, concerns about valuation

From Investing.com: 2024-07-14 12:24:29

InvestingPro subscribers receive exclusive AI analyst moves weekly. UBS downgrades Tesla to Sell due to high AI costs, with a price target raised to $197. Concerns about valuation and future growth justification drove the decision. Analysts caution against high AI investment costs and potential volatility in Tesla’s stock multiple.

Bank of America raises Apple’s price target to $256 on the prospect of a multi-year iPhone upgrade cycle driven by GenAI features. A global smartphone survey shows an aging installed base, with strong intentions to upgrade. The Worldwide Developers Conference (WWDC) also boosts customer upgrade plans for 2024.

Nomura downgrades Super Micro Computer stock to Neutral, citing limited share price upside. Uncertainties about supply easing and GPU transition impact the outlook. Forecasted quarterly sales align with guidance, but limited order visibility and potential AI server uncertainties create challenges. The future remains unclear amidst market shifts.

Microsoft leads in GenAI functionality, driving substantial IT share gains, according to Morgan Stanley. CIO survey data reveals growing optimism in Microsoft’s GenAI products. Core spending growth for Microsoft reaches a high of 6.6%, attributed to strong GenAI presence and Azure Cloud business. A majority of CIOs plan to adopt Microsoft Generative AI products.

Keybanc raises price targets for AI chipmakers, anticipating robust demand. Recovering traditional server demand, especially from major U.S. and Chinese cloud providers, drive the increase. KeyBanc predicts total server shipments to rise by 7% in 2024, with AI servers growing by 150%. Nvidia’s GB200 is expected to generate over $200 billion in data center revenues in 2025.



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