5 big analyst AI moves: Piper’s high conviction in Adobe, Edge AI a plus for Apple
Here is your weekly analyst Pro Recap in the area of artificial intelligence (AI) for this week. Get all this news and more in real-time with InvestingPro.
Morgan Stanley analysts released a note this week. They argue that 2024 will be a catalyst year for ‘Edge AI’ – a dominant market theme that will benefit certain companies, including Apple Inc (NASDAQ:AAPL).
“We see Edge AI as a multi-year tailwind that can improve Product and Services monetization and drive Apple's user base LTV higher, a key driver of long-term valuation, supporting our Overweight rating,” the analysts wrote in a note to clients.
The analysts argue that Apple will emerge as an Edge AI enabler because of 3 “distinct advantages” – Data, Privacy, and Vertical Integration.
Elsewhere, the other 5 stocks that are mentioned as AI ‘enablers’ are Dell (NASDAQ: NYSE:DELL), MediaTek Inc (OTC:MDTKF) Qualcomm (NASDAQ: NASDAQ:QCOM), Xiaomi (OTC:XIACF), and STMicroelectronics NV ADR (NYSE:STM).
Piper Sandler analysts named Adobe Systems Incorporated (NASDAQ:ADBE) the broker’s highest conviction idea to own into year-end, alongside Microsoft (NASDAQ: NASDAQ:MSFT).
«October data reinforces our bullish view that new generative AI functions integrated directly into the application layer could better position ADBE to sustain growth despite a challenging macro,» Piper Sandler analysts commented.
«Creative Cloud mobile downloads increased 19% y/y during the month of October (vs. 6% last year) while Acrobat mobile downloads increased 18% y/y (vs. 7% last year).»
Piper has an Overweight rating and a $650 per share price target on ADBE stock.
“We suggest growth investors revisit ADBE and see the potential for another run into year-end on further proof points that AI could
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