AI Power Play:- stocks Positioning for Long-Term Investment Opportunities.
Apple-Baidu AI collaboration to regulatory factors
Citi analysts attribute Apple’s partnership with Baidu’s ERNIE Bot to regulatory factors, stating that the collaboration is primarily driven by these concerns. Apple plans to integrate Baidu’s ERNIE Bot as the local LLM provider for its upcoming iOS18, with monetization through API interfaces. Citi analysts believe the collaboration is driven by China’s 2023 AI regulation, which requires generative Artificial Intelligent models to be approved before public release, and ERNIE is one of the 40 approved models.
Microsoft upgrade on Copilot
Wedbush has raised its price target for Microsoft to $500, citing optimism about the company’s Artificial Intelligent capabilities and the financial prospects of Copilot. The firm believes that over 70% of Microsoft’s user base will integrate Artificial Intelligent functionalities within three years, potentially increasing revenue by $25 billion to $30 billion by 2025. However, the firm also warns of potential risks such as intensified competition, pricing strategies, technological changes, and economic challenges that could affect the company’s ability to meet these expectations.
Bank of America (BofA) has raised TSM Target
Bank of America Bank of America (BofA) has raised its 12-month target price on Taiwan Semiconductor Manufacturing (TSM) to NT$880 (US$155) due to increased demand for advanced nodes due to Artificial Intelligent strength, computing power, power, and saving requirements. Intel’s recent confirmation of outsourcing Lunar/Arrow Lake CPU tiles to TSMC is expected to contribute to TSMC’s industry leadership.
Advanced nodes play a vital role in mitigating escalating electricity consumption and are expected to see a 22% compound annual growth rate (CAGR) from 2023 to 2025. TSMC’s share price has risen 27% YoTD, backed by Artificial Intelligent strength and industry recovery. its 12-month target price on Taiwan Semiconductor Manufacturing (TSM) to NT$880 (US$155) due to increased demand for advanced nodes due to AI strength, computing power, power, and saving requirements.
Intel’s recent confirmation of outsourcing Lunar/Arrow Lake CPU tiles to TSMC is expected to contribute to TSMC’s industry leadership. Advanced nodes play a vital role in mitigating escalating electricity consumption and are expected to see a 22% compound annual growth rate (CAGR) from 2023 to 2025. TSMC’s share price has risen 27% YoTD, backed by Artificial Intelligent strength and industry recovery.
Adobe’s Summit
Adobe hosted its Summit user conference and analyst event, showcasing new features and product innovations aimed at enhancing enterprise use cases within its Creative Cloud and Experience Cloud offerings. Analysts at BMO Capital Markets reiterated an Outperform rating and $610 price target on Adobe, while KeyBanc analysts maintained an Underweight rating and a $445 price target.
The most significant takeaway from the meeting was a reiteration, which was confusing to both analysts and investors. Adobe’s FY24 targets were immediately addressed at the beginning of the meeting, with the exception of the breakup payment related to Figma. The brokerage firm noted that the most significant takeaway from the meeting was a reiteration, which was initially confusing to both analysts and investors.
foundational Artificial Intelligent model
Macquarie analysts have noted that the foundational AI model market is experiencing a “shakeout” phase, affecting some AI startups. The financial services firm expects more disruptions as companies allocate capital amid rapid innovation. While Apple’s collaboration with Google has gained attention, the iPhone maker is also advancing in local generative AI research.
Macquarie predicts the iOS ecosystem will use a hybrid approach, using Gemini-class models for intricate reasoning and analytical tasks and local AI models within the Apple Neural Engine for routine operations. Adobe’s FY24 targets were addressed at the beginning of the meeting.