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Analysts at Bank of America have deliberated on the news regarding Meta Platforms Inc. (NASDAQ: META) testing over 20 new GenAI features, focusing on enhancing search, chat, and messaging functionalities.
The upcoming features aim to enhance Meta’s text-to-image technology and AI personal assistant capabilities, paving the way for a more seamless integration within the Meta ecosystem.
The analysts stated, “We are confident that the AI-related announcements support our assertion that Meta’s AI-driven technology will lead to innovative user experiences and sustainable revenue models.” They believe that Meta’s AI assets are undervalued in the stock price due to its substantial capex budget, domestic AI infrastructure, and internal LLM.
Piper Sandler has designated NVIDIA Corporation as the brokerage firm’s new top large-cap pick (NASDAQ: NVDA).
While Nvidia provides “a comprehensive compute stack enabling robust efficiencies and significant competitive advantages at the system level,” analysts have indicated that the valuation is “much more compelling than AMD.”
The analysts anticipate that technology licenses will play a significant role in total revenue going forward, expanding NVDA’s TAM. Despite not being fully booked for FY25, they are optimistic about NVDA’s outlook due to a substantial backlog and favorable demand trends. The analysts also mentioned that a new China chip is projected to generate between \(2.5 billion to \)3.5 billion per quarter by the April quarter when fully operational.
Alphabet Inc. Class A (NASDAQ: GOOGL) saw an increase following the launch of Gemini, the company’s latest cutting-edge AI model.
The positive market reception reflects reduced concerns about Alphabet’s position in the highly competitive artificial intelligence sector. Gemini, available in three sizes—Ultra, Pro, and Nano—offers a variety of capabilities, including efficient on-device tasks and integration across Google products like Docs, Google, or YouTube.
KeyBanc analysts commented, “We view this as the culmination of Alphabet’s year of significant AI announcements. However, until investors witness the impact of AI on growth and profitability (which we believe will take time), this narrative is unlikely to change.”
After unveiling new accelerator chips aimed at competing in the rapidly growing AI market, where Nvidia currently holds sway, Advanced Micro Devices Inc. (NASDAQ: AMD) witnessed a significant price surge on Thursday.
AMD highlighted the superior performance of the accelerator cards, asserting their ability to execute AI software at a faster pace than rival products.
With a perceived lower risk compared to NVDA (largely due to the difference in scale), investors are still interested in AMD’s AI narrative, as per Bernstein analysts.
Verint Systems Inc. surged by up to 19% on Thursday following positive remarks from the software company regarding its pipeline and customers’ utilization of AI. Moreover, the company surpassed analysts’ expectations for the upcoming quarter.
Analysts also expressed optimism following the software company’s reaffirmation of its roadmap for the year 2024.
Researchers at Oppenheimer acknowledged the high demand for AI technologies but emphasized the need for “more confidence and tangible evidence of sustained growth” before adopting a more bullish stance.
