5 big analyst AI moves: CRM upgraded, ServiceNow new Top Pick
Here are the biggest analyst moves in the area of artificial intelligence (AI) for this week.
InvestingPro subscribers always get first dibs on market-moving AI analyst comments.
Earlier this week, Morgan Stanley analysts raised their recommendation on Salesforce Inc (NYSE:CRM). Analysts see several vectors for Salesforce to drive top-line upside, especially given “muted” investor expectations.
“Low investor expectations vs potential top-line upside drivers in price increases, product bundling and Data Cloud adoption frame an attractive risk/reward for CRM. While the ramp in GenAI apps may still be >12 months away, Data Cloud likely proves a bridge to better growth in CY24,” Morgan Stanley analysts said in a note.
Wolfe Research analysts also raised their recommendation on CRM stock as they see double digit upside to consensus FCF.
Generative AI stands out as a disruptive and potentially transformative technology with a historical precedent of creating value in various sectors throughout the innovation value chain, UBS analysts said in a note.
The development of generative AI contributes to the creation of new hardware, and its functionality occurs on platforms managed by operators and enablers. The overarching impact is framed as benefiting the broader economy, indicating widespread positive effects across various sectors.
“We expect global AI demand to increase from USD 28 billion in 2022 to USD 300 billion in 2027, based on Bloomberg Intelligence data—a compound annual growth rate of 61%,” UBS's Chief Investment Officer Americas stated.
“In that time, we think the infrastructure segment will grow by 38% and the applications and models segment by 139%. We see upside risk to our estimates given improving visibility
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