Stay ahead of the curve with this week’s top AI market moves!
1. Intel Powers Up AI Everywhere: Unveiling new E-Core Xeon CPUs (Emerald Rapids) and AI-optimized Core Ultra CPUs (Meteor Lake), Intel aims to close the server performance gap and conquer the AI market. Analysts remain cautious, awaiting execution proof.
2. Nvidia Bargain Alert: Despite rising prices, Nvidia (NVDA) shares are now at their cheapest since late 2018, trading at a discount to the SOX index for the first time in 9 years. Bernstein analysts remain bullish, seeing long-term potential and “trough” valuation despite volatility.
3. Meta’s GenAI Search Play: UBS analysts see Meta Platforms (META) poised to grab a slice of the search market with its AI advancements. They estimate $16.9 billion in potential search revenue from GenAI apps, driving investor focus towards chatbot monetization in 2024.
4. Broadcom: Acquisition Spurs Target Raise: Bank of America boosts Broadcom Inc (AVGO) target to $1,250 after the VMware acquisition. Analysts expect VMWare to significantly contribute to growth and EPS, making AVGO a leader in infra software with robust AI opportunities.
5. AI Server Race Heats Up: Dell (DELL) and HP (HPQ) Enterprise square off against server ODMs like Quanta and Wistron in the AI server market. Analysts remain cautious, concerned about Dell’s potential market share lag and lower margins for AI servers. They see potential benefits for OEMs if AI inferencing shifts on-premise, but emphasize long-term potential over immediate gains.
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Shayne Heffernan
