Investing.com – Here are the analysts’ biggest artificial intelligence (AI) moves this week.
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iPhone ‘Turns a Corner with AI-Driven Supercycle’ – Wedbush
Analysts at Wedbush said recent supply chain reviews in Asia indicate a stabilization for Apple’s iPhone, which has been battling slowing sales for months.
In a note, the investment firm raised its price target on Apple (NASDAQ:) shares from $250 to $275, noting that the stabilization is a very positive sign as the company approaches a significant iPhone 16 refresh cycle.
iPhone demand in particular is “turning the corner on the AI-powered iPhone 16 supercycle” that’s just around the corner, Wedbush writes.
“We believe the introduction of AI technology into the Apple ecosystem will open up significant monetization opportunities on both the services and iPhone/hardware fronts, as well as add $30 to $40 per share to Cupertino’s growth story as this vision begins to be realized within golden installed system.” base of 2.2 billion iOS devices.”
Wedbush said its recent checks in Taiwan show Apple’s April supply chain results were 2% ahead of historical linearity, although the consensus remained unchanged.
“The superior performance in April may have been helped by higher inventories ahead of the Chinese holidays in May and June, although analysts also noted a slight rise in China handset production forecasts for the June quarter,” the company said.
Wedbush also expects Apple to lay the groundwork for an AI App Store at WWDC in June, leading to significant growth in the services industry in the coming years.
Microsoft will drive wider adoption of GenAI – Goldman Sachs
Microsoft (NASDAQ:) continues to lead the way in democratizing Gen-AI adoption, Goldman Sachs analysts said in a note this week, praising the company’s innovation across the tech stack following the Build event.
Goldman emphasized that Microsoft’s broad offerings for both businesses and consumers allow the company to “define how AI evolves into a more widely used technology.”
Over the past 18 months, Microsoft has expanded its early innovations with a greater focus on cost efficiencies from infrastructure to applications to hardware.
Analysts believe the Windows maker is laying the foundational components to ensure the long-term relevance of new technologies.
“For this reason, given the company’s announcements—from Copilot extensions to core models and AI-enabled PCs—we expect Microsoft to maintain its first-mover advantage and continue to be a dominant player in the era of the AI generation,” the analysts wrote.
Morgan Stanley upgraded Micron stock, saying it was a “mistake” to stay in the red
In a note to clients on Monday, analysts at Morgan Stanley upgraded shares of Micron (NASDAQ:), hinting that the memory chip maker could issue a “positive preliminary announcement” this quarter.
The Wall Street firm upgraded MU stock from Underweight to Equal Weight, acknowledging that it overestimated the impact of significant losses in 2023 on the company’s valuation and underestimated the economics and narrative aspects of AI memory.
“Staying negative about Manchester United for too long was a mistake. We’re still not sure, but we should have anticipated the fundamental and narrative implications of the power of AI special memory,” the analysts wrote.
Analysts also raised their 12-month price target for the stock to $130 from $98.
“We continue to believe MU is fundamentally overvalued on a long-term DCF basis. But HBM continues to drive memory buyer sentiment, leading to sustained price increases; We may see some positive pre-announcements this quarter. HBM supply may eventually become oversupplied, but we are still in the ramp-up phase.”
Nvidia targets ANET with its AI-optimized Ethernet solution – Rosenblatt
Rosenblatt Securities analysts downgraded the stock last month. Arista Networks (NYSE:) to sell, citing concerns that Nvidia will become a key Ethernet competitor for the networking company.
While Arista recently said it still doesn’t view NVIDIA (NASDAQ:) as a direct threat, Rosenblatt analysts believe the AI chip maker has established itself as an important player in the Ethernet space during its latest earnings report.
“Nvidia began shipping Spectrum X Ethernet Networking in the first quarter of 2025. The solution is optimized for artificial intelligence and, like Infiniband, is designed to ensure that the network becomes a key part of the artificial intelligence computing fabric,” the analysts write.
“This is fundamentally different from what has been required of networks in the past, which will likely give Nvidia performance and competitive advantages over network-centric Ethernet players such as ANET and Cisco (NASDAQ:),” they added.
Moreover, Rosenblatt said Spectrum-X, Nvidia’s advanced networking platform designed to improve data center performance for AI workloads, continues to gain popularity with a variety of customers, including a 100,000-GPU cluster.
The investment firm expects the platform to grow into a multi-billion dollar product line within a year.
AI-PC war seen as positive for ARM, says BofA
Bank of America this week discussed the implications of the PC-AI war for chipmakers, pointing to potential positive outcomes for some companies.
In particular, bank analysts see advantages Hand ADR Holdings (NASDAQ:), while the impact is neutral for Intel (NASDAQ:) and AMD (NASDAQ:).
They explained that the combination of new ARM-based processors with higher power efficiency and more NPU TOPS, as well as new Windows software specifically optimized for ARM, Microsoft claims its new Copilot+ PCs are 58% faster than the current MacBook Air on ARM-based, and much more. More energy efficient than PCs based on Intel and AMD processors.
“While the next iterations of Intel/AMD processors should catch up with AI/NPU performance, we note increased competition among PC processors overall, with Arm expected to gain share (12% share in 26E compared to 2% in 2020) of x86. dominant companies INTC/AMD,” analysts write.
“However, we expect AI-enabled computers to deliver ASP gains of about 10% or 20% for core component suppliers (such as processors), offsetting some of the share loss.”