Analyst Moves in Artificial Intelligence
Citi Analysts on Apple-Baidu AI Collaboration
Citi analysts recently discussed Apple’s partnership with Baidu, attributing the collaboration to regulatory concerns. They noted that Apple plans to integrate Baidu’s ERNIE Bot as the local large language model provider for its upcoming iOS18, with monetization through API interfaces. The analysts believe the collaboration is driven by regulatory factors, as China requires approval for generative AI models before public launch.
Wedbush Raises Microsoft PT
Wedbush increased its price target for Microsoft to $500 from $475, citing optimism about the company’s AI capabilities, particularly highlighting Copilot’s financial prospects. The firm predicts that over 70% of Microsoft’s user base will integrate AI functionalities in the next three years, potentially boosting revenue significantly by 2025. However, they also highlighted potential risks such as competition and economic challenges.
TSM Target Price Hike at BofA
Bank of America analysts raised their target price on Taiwan Semiconductor Manufacturing to NT$880 on expectations of increased demand for advanced nodes driven by AI requirements and computing power. They also mentioned Intel’s decision to outsource CPU tiles to TSMC as a positive factor for the company’s industry leadership. The analysts project strong growth in revenue for industry-leading edge foundry services from 2023 to 2025.
BMO’s Outlook on Adobe
BMO Capital Markets highlighted Adobe’s recent product innovations aimed at enhancing enterprise use cases within its Creative Cloud and Experience Cloud offerings. They view Adobe as a leading company in enterprise workflow solutions and believe in its longer-term growth potential. Despite some confusion around FY24 targets, BMO maintains an Outperform rating and $610 price target on Adobe.
Macquarie on Foundational AI Startups
Macquarie analysts noted a shakeout phase in the foundational AI model market, impacting some startups. They anticipate further disruptions as companies strive to keep up with rapid innovation. Additionally, they mentioned Apple’s progress in local generative AI research and forecasted a hybrid approach in the iOS ecosystem for AI models. This balance includes using Gemini-class models for complex tasks and local AI models for routine operations.
