Investing.com — A look at this week’s biggest analyst moves in the artificial intelligence (AI) space.
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No demand concerns for Microsoft’s Azure and AI workloads – TD Cowen
After hosting a virtual investor conference with Microsoft’s investor relations (IR) managers, TD Cowen equity analysts cited the tech giant’s accelerating demand for Azure and AI workloads. He reaffirmed his bullish view on stock prices.
“At Azure, demand trends are stable, spending on new workloads is resurfacing, and a healthy backlog increases confidence for growth and share gains.In the AI space, customer projects are “It’s early stage, broad demand is building, and MSFT appears to be leveraging a competitive advantage,” analysts said in a note this week.
The brokerage highlighted changes in customer patterns for Microsoft (NASDAQ:), noting that the way customers allocate their budgets amid the economic climate is at a tipping point.
Once reluctant to invest in new workloads or premium services due to economic uncertainty, customers are now becoming more proactive by investing in new workloads again. Reserve a budget specifically for your AI initiatives on Azure. And a larger backlog of projects to start accumulates.
“We feel this has helped us build a larger and more visible Azure pipeline, giving management confidence in the sustainability of Azure’s growth,” said TD Cowen. I am.
CMB now available for purchase on Amazon
CMB International Capital, a subsidiary of China Merchants Bank, this week launched investigative reporting on the Amazon (NASDAQ:) tech giant, saying there is “ample potential” for growth opportunities in the tech giant’s e-commerce division in the U.S. and abroad. “There is,” he said. .
The investment firm has set a price target for AMZN at $213.
According to CMB analysts, Amazon’s AWS cloud division benefits from a strong technology foundation, with the advent of generative AI providing further expansion potential.
“Continued efficiency gains and improved economies of scale in our retail operations will lead to improved profitability, driven by our localization strategy, lower service delivery costs and increased revenue contribution from our platform business,” the company said. “I’m thinking about it,” the analyst said.
“The increasing revenue mix of the relatively high-margin AWS business could drive Amazon’s margin expansion in the long term.”
CMB simultaneously initiated coverage of MSFT and also gave it a Buy rating.
Macquarie praises Masayoshi Son’s new chip venture
Last week, Bloomberg reported that SoftBank (TYO:)’s Masayoshi Son is launching a new $100 billion chip venture, Izanagi, to compete with Nvidia (NASDAQ:) in the AI semiconductor market.
The move is reportedly aimed at improving status. arm We are partnering with SoftBank’s chip design subsidiary Holdings, Inc. (NASDAQ:) to create an investment holding company as a leader in the AI chip industry.
Macquarie analysts praised Mr Son’s new initiative, saying the 66-year-old billionaire entrepreneur was “thinking big about his next move”.
“If this venture launches, the stock will benefit from the SoftBank AI ecosystem, which we have consistently written about as undervalued, but in particular from Arm. likely,” the analyst wrote in a note.
Rosenblatt takes Super Micro PT to new highs
Rosenblatt equity analysts nearly doubled their price target on Supermicrocomputer (NASDAQ: NASDAQ:) from $700 to $1,300, hitting a new street high.
“The key to this story is that the company is benefiting not only from long-term growth in AI (more than 50% CAGR over the next few years), but also from significant market share gains,” the analyst said in a note Monday. That’s something for investors to consider.”
“With a particular focus on enterprise, we expect these gains to reach double digits over the next few years, up from mid-single digits today,” he added.
The analyst emphasized that the adoption of liquid cooling technology is critical to enhancing the AI capabilities of cloud infrastructure, and said liquid cooling technology is a key driver of increased engagement from hyperscale operators. I regard it as such.
Scotiabank launches UiPath research coverage
Earlier this week, Scotiabank Global Equity Research analysts initiated coverage of UiPath (NYSE:) with a Sector Perform rating and a $29 price target.
“PATH has grown from a leading Robotic Process Automation (RPA) vendor to a full-fledged platform for enterprise-level automation, with products that address automation and integration challenges through the advantages of various technologies. ,” the analysts said.
According to Scotiabank, PATH’s expansion into a broader automation platform provides an opportunity to tap into a large, validated market and grow share among current customers.
This move to move beyond core robotic process automation (RPA) and focus on broader automation is essential for sustained growth.
Analysts warned that PATH is poised to deepen its penetration into the automation space and maintain its leadership, but faces challenges from changing markets and increasing competition.
“While we are intrigued by PATH’s growth sustainability and return trajectory, which has seen it grow to $1.5 billion in ARR in a short period of time, we would wait for a better entry point before recommending the stock,” they wrote. Stated.
