Investors were eager to acquire shares of the UK-based chipmaker Arm Holdings ADR (NASDAQ: ARM) last week following the company’s impressive FQ3 results and guidance. Jefferies analysts responded to this enthusiasm by revising their ARM forecasts and raising their target price from \(98 to \)15. They highlighted ARM’s position as a key beneficiary of the growing demand for edge AI devices, particularly high-end smartphones, citing the stronger-than-expected FYQ3 results and FYQu4 guidance. The transition to products utilizing the V9 architecture, known for its higher efficiency compared to V8, is expected to drive royalty growth, supported by increased AI-driven chip design activity and resulting licensing revenues.
Meanwhile, interest in NVIDIA Corporation (NASDAQ: NVDA) remains high, with Wall Street expressing confidence in NVDA’s continued potential in the AI sector despite a 50% increase since the beginning of 2024. Analysts from Morgan Stanley upgraded their outlook on NVDA, noting a strong near-term outlook. While long-term cloud prospects remain positive, analysts anticipate a potential plateau in 2025.
Bernstein analysts predict that Chinese tech giant Baidu Inc. (NASDAQ: BIDU) faces critical years ahead as it expands its AI capabilities amidst heightened competition. They emphasize three key aspects of Baidu’s AI strategy for investors to consider: increasing market share and enhancing conversion rates in search marketing, delivering a compelling user experience to drive customer engagement, and differentiating through the QianFan AI developer platform to maintain a competitive edge in the cloud industry.
In a separate development, BofA Securities analysts raised the target price for Palantir Technologies Inc (NYSE: PLTR) from \(21 to \)24, reaffirming a Buy rating. They lauded Palantir’s AI platform (AIP) for its significant impact and growth potential, particularly in US commercial sales. The analysts foresee continued growth opportunities for Palantir, positioning the company as a key player in AI-enabled decision-making.
Google Inc. Class A (NASDAQ: GOOGL) unveiled Gemini Ultra, its latest advanced large language model (LLM), marking a significant step in the tech giant’s AI capabilities. Analysts see multiple advantages in Gemini Ultra, including enhanced product innovation, improved search efficiency, and a more unified strategy under the Google brand. Citi analysts raised the price target to $168 and maintained a Buy rating on GOOGL, citing the potential benefits of the new LLM across various Google products and services.
