Meta’s Underappreciated AI Assets Draw Attention from BofA Analysts
Bank of America (NYSE:BAC) analysts have highlighted the underappreciated AI assets of Meta Platforms Inc (NASDAQ:META). Meta is currently conducting trials for more than 20 new GenAI features, with a focus on search, chat, and messaging functionalities. These features are expected to enhance Meta’s AI personal assistant and text-to-image generation capabilities, making them seamlessly integrated into the Meta ecosystem.
Bank of America analysts believe that these AI-driven innovations will lead to new user experiences and recurring revenue models for Meta. With substantial capital expenditure, an internal AI supercomputer, and in-house LLM (large language model), Meta’s AI assets are seen as undervalued in its stock price.
Nvidia becomes top pick at Piper Sandler
Piper Sandler has designated NVIDIA Corporation (NASDAQ:NVDA) as its new top large-cap pick. Analysts at Piper Sandler find Nvidia’s valuation substantially more compelling than AMD, emphasizing Nvidia’s ability to provide a full stack of computing solutions that offer strong efficiencies and competitive advantages at the system level.
They anticipate that software licenses will become a significant portion of Nvidia’s revenue in the future, expanding its total addressable market (TAM). With a strong backlog and demand tailwinds, the analysts have good visibility into Nvidia’s performance in FY25. Additionally, the introduction of a new China chip is expected to contribute significantly to revenues once fully ramped.
Alphabet Inc Class A (NASDAQ:GOOGL) experienced a stock price increase following the launch of Gemini, its latest and most advanced AI model. Gemini comes in three sizes—Ultra, Pro, and Nano—and offers various capabilities, including efficient on-device tasks and deployment across Google products like Gmail, YouTube, and Docs.
This positive market response reflects reduced concerns about Alphabet’s position in the competitive AI market. However, KeyBanc analysts suggest that the true impact of AI on growth and profitability may take some time to materialize, indicating that investors are keen to see how AI influences Alphabet’s performance.
AMD’s accelerator chips Aim to challenge Nvidia’s dominance
Advanced Micro Devices Inc (NASDAQ:AMD) saw a significant rally following the unveiling of new accelerator chips designed to compete in the flourishing AI market, currently dominated by Nvidia. AMD claims that its accelerator chips offer superior performance, enabling faster execution of AI software compared to existing rival products. While AMD’s AI story is perceived as having lower risk compared to Nvidia, Bernstein analysts believe that investors are still looking to capitalize on AMD’s potential in the AI market.
Verint Systems Inc (NASDAQ:VRNT) experienced a 19% increase in its stock price after reporting positive remarks about its pipeline and the adoption of AI by its clients. The company also exceeded analyst expectations for the third quarter. Analysts expressed optimism about Verint’s reaffirmed guidance for 2024 and noted the robust demand for AI bots. However, some analysts, like those at Oppenheimer, seek more concrete evidence of sustainable growth before adopting a more constructive stance.
InvestingPro is offering exclusive discounts of up to 60% off during its Cyber Monday Extended Sale. Subscribers can unlock the potential of InvestingPro and gain access to market-moving AI analyst comments before anyone else. Elevate your market research with faster data, giving you the competitive edge you need to make informed investment decisions. Don’t miss this opportunity to enhance your market insights and take advantage of generous discounts.
Read More
Meta’s Underappreciated AI Assets Draw Attention from BofA Analysts
Bank of America (NYSE:BAC) analysts have highlighted the underappreciated AI assets of Meta Platforms Inc (NASDAQ:META). Meta is currently conducting trials for more than 20 new GenAI features, with a focus on search, chat, and messaging functionalities. These features are expected to enhance Meta’s AI personal assistant and text-to-image generation capabilities, making them seamlessly integrated into the Meta ecosystem.
Bank of America analysts believe that these AI-driven innovations will lead to new user experiences and recurring revenue models for Meta. With substantial capital expenditure, an internal AI supercomputer, and in-house LLM (large language model), Meta’s AI assets are seen as undervalued in its stock price.
Nvidia becomes top pick at Piper Sandler
Piper Sandler has designated NVIDIA Corporation (NASDAQ:NVDA) as its new top large-cap pick. Analysts at Piper Sandler find Nvidia’s valuation substantially more compelling than AMD, emphasizing Nvidia’s ability to provide a full stack of computing solutions that offer strong efficiencies and competitive advantages at the system level.
They anticipate that software licenses will become a significant portion of Nvidia’s revenue in the future, expanding its total addressable market (TAM). With a strong backlog and demand tailwinds, the analysts have good visibility into Nvidia’s performance in FY25. Additionally, the introduction of a new China chip is expected to contribute significantly to revenues once fully ramped.
Alphabet Inc Class A (NASDAQ:GOOGL) experienced a stock price increase following the launch of Gemini, its latest and most advanced AI model. Gemini comes in three sizes—Ultra, Pro, and Nano—and offers various capabilities, including efficient on-device tasks and deployment across Google products like Gmail, YouTube, and Docs.
This positive market response reflects reduced concerns about Alphabet’s position in the competitive AI market. However, KeyBanc analysts suggest that the true impact of AI on growth and profitability may take some time to materialize, indicating that investors are keen to see how AI influences Alphabet’s performance.
AMD’s accelerator chips Aim to challenge Nvidia’s dominance
Advanced Micro Devices Inc (NASDAQ:AMD) saw a significant rally following the unveiling of new accelerator chips designed to compete in the flourishing AI market, currently dominated by Nvidia. AMD claims that its accelerator chips offer superior performance, enabling faster execution of AI software compared to existing rival products. While AMD’s AI story is perceived as having lower risk compared to Nvidia, Bernstein analysts believe that investors are still looking to capitalize on AMD’s potential in the AI market.
Verint Systems Inc (NASDAQ:VRNT) experienced a 19% increase in its stock price after reporting positive remarks about its pipeline and the adoption of AI by its clients. The company also exceeded analyst expectations for the third quarter. Analysts expressed optimism about Verint’s reaffirmed guidance for 2024 and noted the robust demand for AI bots. However, some analysts, like those at Oppenheimer, seek more concrete evidence of sustainable growth before adopting a more constructive stance.
InvestingPro is offering exclusive discounts of up to 60% off during its Cyber Monday Extended Sale. Subscribers can unlock the potential of InvestingPro and gain access to market-moving AI analyst comments before anyone else. Elevate your market research with faster data, giving you the competitive edge you need to make informed investment decisions. Don’t miss this opportunity to enhance your market insights and take advantage of generous discounts.
Read More