Nvidia Continues to Dominate Wall Street Analyst Calls Amid AI Boom

Here are Thursday's biggest analyst calls: Nvidia, Disney, Tesla, Amazon, Microsoft, Ralph Lauren, Vornado, Costco, Microsoft & more

Here are Thursday's biggest calls on Wall Street: Canaccord initiates Stride as overweight Canaccord initiated coverage of the education tech company and said it's well positioned in the adoption of online learnings. "We are initiating coverage of LRN with a BUY rating and $94 price target, based on ~8x forward adj. EBITDA and supported by DCF valuation." JPMorgan downgrades Bumble to neutral from overweight JPMorgan said it's "not an easy fix" for the dating app company following earnings on Wednesday. " BMBL reported mixed 2Q results and significantly lowered its 2024 outlook. Barclays initiates Constellation Energy as buy Barclays said the energy company is well positioned. "We initiate coverage of CEG with an Overweight rating and $211 PT. CEG operates the largest carbon-free generation fleet in the U.S. through its nuclear, natural gas, and renewable asset portfolio." Bank of America reiterates Ralph Lauren as buy Bank of America is pounding the table for shares of Ralph Lauren following earnings on Wednesday. "We reiterate our Buy on RL; despite a choppy macro backdrop, 1Q results reaffirmed our view that the brand remains healthy and margin execution remains intact." Barclays reiterates Disney as overweight The firm said it's standing by the entertainment giant following earnings on Wednesday. " Disney's acknowledged theme park challenges but given underlying drivers of weakness, visibility remains limited; However other segments should increasingly become significant offsets." Mizuho downgrades Intel to neutral from outperform Mizuho said it sees too many negative catalysts for Intel. "We upgraded INTC in Nov'23 on strong AI ramps, and new products driving PC/DC traction. Fast-forward 9 months, and we were wrong - INTC has continued to lag its peers and is losing share in all key markets AI/DC/PC through 2025E." BMO upgrades Vornado to outperform from market perform BMO said in its upgrade of the real estate investment that it's getting bullish on New York City "office and retail fundamentals." "We upgrade VNO to Outperform, while increasing our target price to $40 (+$11). Despite improving NYC office and retail fundamentals and a high-quality portfolio, VNO has recently been a show-me story. It is now showing..." Redburn Atlantic Equities reiterates Microsoft & Amazon as buy The firm said investors should buy any dip in both stocks. "The recent sector derating offers buying opportunities for Amazon and Microsoft (Buy), with a positive but less favourable deflation-inflation balance." Citi reiterates Nvidia and Micron as buy Citi said investors should buy the dip in any semis selloff. " Micron is our top pick, and we believe it's time to double down as the DRAM upturn should persist given reduced capacity and DRAM pricing in 3Q24 is better than expected. Other Buy-rated names include AMD, AVGO, ADI, MCHP, NVDA, and KLAC." Raymond James upgrades Lattice Semiconductor to outperform from market perform Raymond James said buy the dip in shares of the semis company. "We believe cyclical correction is largely behind and expect upward revisions to start in the next 1-2 quarters. In particular, LSCC's Industrial/Auto segment declined 50% y/y in 2Q, and we expect a gradual recovery on inventory normalization even if end demand is mixed." Bank of America downgrades Celsius to underperform from neutral Bank of America said the energy category is slowing. "Still, our research suggests that the slowdown in the category will have an outsized impact on CELH. As a result, we downgrade our rating to Underperform from Neutral and lower our PO to $32 from $60." KeyBanc upgrades Wolverine World Wide to overweight from sector weight Key said shares are "compelling" following earnings. "We think the better than expected results serve as another proof point of WWW's pathway to growth and move to Overweight." Evercore ISI upgrades Sarepta to outperform from in line Evercore said investors should buy the dip in the biotech company. "We are taking advantage of this stock weakness to upgrade SRPT to Outperform with a $179/sh PT. Seaport downgrades Disney to neutral from buy Seaport downgraded Disney following earnings on Wednesday. "Ain't no cure for the Summertime Blues - Downgrading to Neutral on Parks & DTC [direct to consumer] Profit outlook." RBC reiterates Tesla as outperform RBC said full-self driving could be a positive near term catalyst for the stock. "Amidst the Autos and market carnage, Tesla could be an interesting name to own. It benefits from increasing reg credits and energy storage growth. Importantly, the company could at any moment cut its FSD pricing, which we believe would be a critical catalyst for shares." Daiwa upgrades Arm to outperform from hold Daiwa upgraded the semis company following earnings. "The quarter was mixed, good results, weak 2Q25 guide. However, it is that Arm remains a pioneer and leader in Mobile compute, where now the company is taking this model and expanding it out to many other areas of tech and especially AI." Gordon Haskett upgrades Costco to buy from accumulate The firm upgraded the stock following its same-store sales results. "After the close (8/7), Costco announced July results with SSS rising 7.2% - above our 6.0% model and the buy-side views that ranged from ~4.0%-6.0%." Morgan Stanley downgrades Textron to equal weight from overweight The firm said it sees a more balanced risk/reward for the aircraft company. "We downgrade TXT to Equal-weight from Overweight as we take into account investor sentiment, a strong balance sheet, and risk reward. Mizuho initiates Westlake as outperform The firm said it's bullish on shares of the chemical company. "We initiate coverage of Westlake Chemical ( WLK) with an Outperform rating & $170 PT, and Olin Corp (OLN) with a Neutral rating & $45 PT." Bank of America downgrades Topgolf to neutral from buy The firm said the golf's company outlook is too challenging following earnings. "Our Neutral rating reflects our view that challenging Topgolf outlook is partially offset by compelling valuation with shares trading well below peers incl. GOLF." Daiwa upgrades Pfizer to outperform from neutral Daiwa upgraded the biopharma company following earnings on July 30. " Pfizer upwardly revised full-FY24 guidance, raising its revenue target by $1bn to guide for between $59.5bn and $62.5bn." Bank of America reiterates Shopify as buy Bank of America said it's sticking with the stock following earnings on Wednesday. " Shopify delivered solid topline growth in Q2, led by share gains, same store sales and continued payments penetration of gross merchandise value (GMV)." JPM reiterates SolarEdge as overweight JPMorgan said it's sticking with its overweight rating on the stock following earnings on Wednesday. " SEDG reported mixed 2Q results with PF EPS below expectations on slightly better than expected revenue."

Here are Wednesday's biggest analyst calls of the day: Nvidia, Apple, Target, Super Micro & more

Here are Wednesday's biggest calls on Wall Street: Deutsche Bank upgrades Moderna to hold from sell Deutsche Bank said it sees a more balanced risk/reward for Moderna shares. "a more troublesome Winter's Tale, but up to Hold." BTIG upgrades TrueCar to buy from neutral BTIG said it's bullish on shares of the automotive pricing internet company. "We are upgrading TRUE shares to BUY from Neutral with a $3.75 PT." Seaport upgrades Sphere to buy from neutral Seaport said the Las Vegas entertainment company has an attractive entry point. " Sphere Entertainment is another preferred experience economy stock that has gone on sale during the market drawdown." Baird upgrades Builders First Source to outperform from neutral Baird said the building materials company is well positioned. "With guidance reset and key headwinds/overhangs (multi-family sales/margin normalization and downsizing of single-family starts) set to fade in 2025, we see a good setup for BLDR." Barclays downgrades retail to neutral from positive Barclays downgraded the sector due to "promos suggest weakening demand." "We downgrade Retail to Neutral from Positive on erosion of inventory margin recapture as promos intensify and demand weakens." TD Cowen downgrades Molson Coors to hold from buy TD Cowen said the beer marker is losing share gains. "We downgrade Molson Coors to Hold and lower our PT to $58." Wells Fargo downgrades Amgen to equal weight from overweight Wells said in its downgrade of Amgen that the thesis has "played out" for the biotech company. "Thesis played out. Risk/Reward not compelling enough to stick with the Overweight rating." B. Riley downgrades TripAdvisor to neutral from buy B. Riley said it sees growth deteriorating. "We're downgrading Tripadvisor, Inc . from Buy to Neutral to reflect a deterioration in Core (i.e., Brand Tripadvisor) revenue growth and margins, implied in management's outlook." Piper Sandler reiterates Advanced Micro Devices and Nvidia as overweight Piper said on Wednesday that it likes both semis stocks. The firm said AMD is a top pick. "We include names that we see benefiting the most from secular shifts set to take place over the coming 1-3 year time horizon. These include NVDA and AMD within the compute space as well as ON given its exposure to silicon carbide as well as other company-specific drivers." Citi adds a positive catalyst watch on Amer Sports Citi opened a positive catalyst watch on Amer and says the sporting goods company has an attractive risk/reward. "With shares down 25% since late June on fears of a China slowdown we believe the risk/reward is favorable into 2Q EPS. We are opening a 30-day positive catalyst watch." Wells Fargo upgrades Globus Medical to overweight from equal weight Wells says the medtech company's integration with NuVasive is going well. "We are upgrading GMED from Equal Weight to Overweight and increasing our price target from $60 to $78 as the integration with NuVasive is progressing better than we expected." Wells Fargo names Uber a top pick Wells said the ride sharing company remains a top idea at the firm following earnings. "Uber remains top 2H pick. See bear case of decel and AV [autonomous vehicle] terminal risk largely being addressed by YE24. View 2Q results/3Q guide as refuting decel fears, point one of bear case." Raymond James initiates Natural Gas Services Group as strong buy Raymond James said the natural gas company is well positioned. "Natural Gas Services Group (NGS) is a leading provider of contract natural gas compression in the U.S." TD Cowen initiates Abacus Life as buy TD Cowen said the company has an "attractive business model." "We initiate coverage of leading life settlements provider, Abacus Life (ABL), at Buy with a price target of $14, implying 51% upside potential." Bank of America reiterates Apple as buy The firm said survey checks show App Store revenue "remains strong" for Apple. "Data from Sensor Tower indicates that Global App Store revs remain strong, Global revenue increased +11% y/y in July." Citi reiterates Target as buy Citi said it's bullish heading into Target earnings on August 21. "Based on our quant team's crowding analysis, the stock is significantly less crowded from a long perspective than it was prior to 1Q earnings, and we believe investor skepticism has risen. As a result, and because the stock is down 11% MTD, we believe the setup is favorable going into earnings." Bank of America downgrades Super Micro Computer to neutral from buy The firm said it sees margin pressure following earnings on Tuesday. "Despite overall higher revs in F25, GM [gross margin] gets back into the normal range (14-17%) only gradually by the end of F25 as 1) manufacturing efficiencies improve and SMCI ships more liquid cooled racks, 2) as customer mix improves..." Bank of America reiterates Rivian as buy Bank of America said it's sticking with the stock following earnings on Tuesday. "RIVN still in right place/time with right product/strategy." Goldman Sachs reiterates Sunrun as buy Goldman said Sunrun is well positioned for cash generation following its earnings report on Tuesday. "Looking ahead, we expect this strong cash flow to support continued market share gains." Bernstein upgrades Arm to market perform from underperform Bernstein raised its price target on the stock to $100 per share from $92 and upgraded Arm mainly on valuation. "With Arm's share price down ~40% in four weeks and more confidence in mobile royalty growth, we find the need to review our valuation argument." Mizuho upgrades Vertiv to outperform from neutral Mizuho said the multination company has robust fundamentals. "Upgrading VRT to Outperform - Fundamentals Still Hot Despite Cooling AI Valuations." Deutsche Bank upgrades Aramark to buy from hold Deutsche Bank said the food and facilities services company is a "cleaner story." "We are upgrading ARMK to Buy from Hold and raising our PT to $39 (from $36)."

Wednesday's analyst calls: Super Micro Computer earnings reaction, AMD a top pick

(This is CNBC Pro's live coverage of Wednesday's analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Two names tied to the artificial intelligence trade were among the stocks being talked about by analysts on Wednesday. Analysts gave their assessment of the latest Super Micro Computer quarterly results. Meanwhile, Piper Sandler reiterated Advanced Micro Devices as a top pick, citing market share gains. Check out the latest calls and chatter below. All times ET. 5:54 a.m.: Wall Street weighs in on Super Micro Computer's disappointing gross margins Some analysts are standing by Super Micro Computer , even as gross margin concerns offset a strong revenue outlook and ongoing AI demand. "With the recent stock correction, valuation is more reasonable," wrote Barclays analyst Tim Long, noting that the 11% premarket drop suggests shares now trade at 15 times 2025 EPS estimates. "While the stock might be in a penalty box near term on [gross margin] headwinds, we continue to highlight time to market and [direct liquid cooling] share gains for SMCI." The server company topped fiscal fourth-quarter revenue estimates but fell short of earnings expectations. Gross margins dropped to 11.2% from 17% in the year-ago quarter and from 15.5% in the third quarter. Super Micro also announced a 10-for-1 stock split. The stock has slumped 27% over the last month amid a reckoning in technology stocks and the broader market. Shares have also lost nearly half their value since hitting a closing high in March. JPMorgan analyst Samik Chatterjee reiterated his outperform rating and $950 price target, referring to Super Micro as a "show-me" story. He expects gross margins to improve in the fiscal fourth quarter and return to the long-term range by 2025 as discounts dwindle and manufacturing efficiencies pick up. "Admittedly, SMCI will be a show-me story on margin improvement following challenging margins reported in F4Q, and we expect the P/E multiple attributed to the shares to be contingent on delivery to the margin improvement expectations," he wrote, with the target reflecting 54% upside from Tuesday's close. To be sure, some on Wall Street are treading carefully. Goldman Sachs analyst Michael Ng reiterated a neutral rating and moved his price target to $675 from $775 a share, citing "uncertainty" surrounding the long-term outlook for margins. "We remain cautious on increased competition in the AI server market from traditional vendors and [original design manufacturers] as well as from SMCI concentration risk in AI shipments with ~5-7% of unit shipments accounting for ~60% of revenue," said Wells Fargo's Aaron Rakers. -- Samantha Subin 5:54 a.m.: Piper Sandler reiterates AMD as a top pick Nvidia gets most of the fanfare in the semiconductor rate, but Piper Sandler thinks investors need to also pay attention to AMD . Analyst Harsh Kumar reiterated the stock as a top pick. He has an overweight rating on shares and a price target of $175, which implies upside of 34%. "We continue to like AMD especially given the recent industry pullback. Our expectations see AMD taking roughly 20% share of the $400B accelerator market by 2028. Additionally, reaffirmed by last week's INTC (not covered) results, we see AMD gaining significant share in the traditional server market," Kumar said in a note. Market share gains for AMD "in the traditional server market are expected to continue given the lackluster execution from industry incumbents INTC. We see this transition continuing to take shape over the next several years as AMD generates additional wins at key customers at the expense of INTC," the analyst added. AMD shares have struggled this year, losing more than 11%. AMD YTD mountain AMD year to date -- Fred Imbert