5 big analyst AI moves: Alphabet and Amazon attract new Street fans
Here are the biggest analyst moves in the area of artificial intelligence (AI) for this week.
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JPMorgan analysts upgraded Dell Technologies Inc (NYSE:DELL) to Overweight from Neutral, citing the company’s leverage to the AI-led Compute investment cycle.
The cycle “will benefit branded server companies (DELL and HPE in our coverage), even as the drivers for the remaining businesses are more mixed, being subject to the macro backdrop,” the analyst said.
Similarly, they promoted Arista Networks (NYSE:ANET) to top pick on accelerating growth from AI ramp.
“We expect the valuation premium currently (33x P/E vs. long-term average of 28x) to be sustained or even expand as AI revenues ramp, driving higher visibility into the driver for growth acceleration.”
BMO initiated research coverage of 25 stocks in the internet sector, including sub sectors like digital advertising, ecommerce, online travel, advertising/marketing-tech and interactive media.
When it comes to AI, BMO analysts highlighted Alphabet Inc (NASDAQ:GOOGL) as best-positioned to “benefit from the proliferation of generative AI and large language models.”
“While the acquisition of DeepMind in 2014 resulted in a step function increase in AI capabilities, Google has integrated machine learning (“ML”) into its core products since 2000 – this effectively gives Alphabet a 10+ year head start relative to the industry.”
Elsewhere, Amazon.com Inc (NASDAQ:AMZN) is also mentioned as the e-commerce stock is expected “to benefit from artificial intelligence/machine learning given its investments in Trainium and Inferentia chips as well as the middle layer of the stack in Bedrock and
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