Apple (NASDAQ: AAPL), the company that had paused its work on the electric vehicle (EV) under Project Titan, an initiative launched a decade ago, was reportedly announced earlier this week by Bloomberg News.
The tech giant made this announcement publicly on Tuesday, surprising its nearly 2,000 employees.
A significant number of Apple’s Special Projects Group (SPG) members will now transition to the artificial intelligence (AI) division, overseen by CEO John Giannandrea, to focus on generative AI solutions, as per the report.
Morgan Stanley commented that if the reports were accurate, it would represent a positive step for Apple. The shift could allow the company to reallocate resources towards more critical initiatives like Gen AI and demonstrates cost discipline, according to analysts.
Morgan Stanley analysts were impressed by Dell Technologies (NYSE: DELL) recent quarterly report, noting that the company’s AI pipeline is exceeding expectations and aligning closely with optimistic supply chain indicators.
Dell’s AI client feedback stood out, with a significant increase in requests, backlog, and pipeline growth, positioning the company as a leader in the $72B AI technology and service sector, as stated by an analyst.
Furthermore, the analyst expressed confidence in Dell’s future performance, maintaining it as a Top Pick and raising the price target to \(128 from \)100.
Broadcom (NASDAQ: AVGO) is set to report its fiscal first quarter 2024 results after the market closes on Thursday, March 7th.
With the stock already up 17% year-to-date, outperforming the SOX index, there is heightened anticipation around the report due to the ongoing momentum in the AI-driven market.
Bank of America analysts raised the target price on Broadcom from \(1250 to \)1500, anticipating a 7% increase from current levels, provided that the FY2024 estimates remain stable.
Investors are looking forward to Broadcom’s AI Investor Day on March 20, expecting continued growth driven by a unique blend of capital appreciation, income yield/growth, and its status as a significant AI player.
Hewlett Packard Enterprise (NYSE: HPE) was downgraded from Overweight to Equal Weight by a Wells Fargo analyst, with the target price lowered from \(21 to \)17.
The pace of revenue conversion and underlying EBIT% remain key concerns, according to the analyst, despite acknowledging HPE’s strategic position in the HPC and AI convergence.
Macquarie analysts predicted significant failures in relational AI technologies in 2024, citing recent incidents such as ChatGPT’s malfunction and Google’s Gemini project generating historically inaccurate images, raising questions about the reliability of AI systems.
These incidents underscore the challenges AI vendors face in ensuring accuracy and truthfulness in AI applications, particularly as AI becomes more prevalent in various sectors.
