5 big analyst AI moves: Nvidia gets new Street-high PT; OpenAI launches new model
Here are the biggest analyst moves in the area of artificial intelligence (AI) for this week.
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Loop Capital started research coverage of NVIDIA Corporation (NASDAQ:NVDA) stock with a Buy rating and a $1,200 price target, which represents a new Street high.
“Initiating Buy and $1200 PT (63% appreciation) as we believe not only is there material upside to Street estimates in CY2024/FY2025 & CY2025/FY2026 but that we are at the front end of a 3 — 5 year GPU compute & Gen AI foundational build across Hyperscale,” the broker said in a note.
Despite the rise of new silicon providers and internal solutions from major players and Hyperscalers, Loop expects NVDA to continue attracting robust demand from its largest customers in 2024 and 2025.
The firm’s analysis projects an uptick toward 50-60% GPU compute usage among Hyperscalers, up from the current 10%, driven by generative AI's demands. This aligns with Nvidia CEO Jensen Huang's predictions on the pivotal role of GPU computing for advanced AI applications.
Earlier in the week, Evercore ISI analysts maintained an Outperform rating and a $220 price target on Apple Inc (NASDAQ:AAPL), viewing it as “an underappreciated AI beneficiary that stands to significantly benefit from integrating LLMs into their core technology.”
According to Evercore, this integration is poised to help the iPhone maker expand its ecosystem with added functions, enable on-device running of substantial LLMs for AI-focused apps, and potentially shorten iPhone replacement cycles as consumers seek the newest LLM-enhanced models.
“We think AAPL is best-positioned to bring AI inference to the edge via the iPhone,
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