Biggest Analyst Moves in Artificial Intelligence (AI) This Week

Evercore: Nvidia Stock Split Could Trigger Market Volatility

Nvidia's (NASDAQ) stock split, effective June 10, could be a significant catalyst for increased market volatility, according to Evercore analysts. Following Nvidia's earnings report on May 22 and the announcement of the 10-for-1 stock split, Nvidia shares surged by 20.9% over four sessions while the S&P 500 index dropped by 0.75%. Evercore highlighted that such divergence in performance is unprecedented.

Past similar events, such as the stock splits of Apple (NASDAQ) and Tesla (NASDAQ) on August 31, 2020, resulted in notable momentum shifts and higher volatility. Evercore predicts Nvidia's stock split might lead to increased downside, market volatility, and a potential rotation from growth to small-cap stocks. Investors are advised to prepare for higher volatility due to the stock split and other upcoming events like new jobs reports, CPI and FOMC data, and the Trump sentencing.

Bank of America Hikes ASML Price Target to a Street High

Bank of America analysts raised their price target on ASML (NASDAQ) to a new Wall Street high of €1,302, driven by confidence in the semiconductor giant's ability to achieve €40 billion in revenue by 2025. ASML, a critical enabler of the AI infrastructure buildout, saw its 2025 and 2026 revenue and EPS estimates increase by around 6% to 9% due to higher demand for EUV tools and improved gross margins.

Bank of America's revised estimates for ASML's 2025 and 2026 revenue are now 10-7% above consensus, with EPS estimates 15-9% higher. Despite concerns about foundry orders, investment from hyperscalers and enterprise customers in AI infrastructure necessitates significant capacity additions at the leading edge, solidifying ASML as BofA's top pick in EU Semicaps.

Argus Upgrades Hewlett Packard Enterprise (HPE) to Buy

Argus Research upgraded HP Enterprise (NYSE) from Hold to Buy, setting a price target of $26. The upgrade is attributed to HPE's strong positioning and growing opportunity in the AI space. HPE exceeded consensus revenue and non-GAAP EPS estimates for fiscal Q1 2024 and provided positive forward guidance. The company continues to generate robust revenue from AI servers, with cumulative AI systems and services orders totaling $4.6 billion as of mid-year fiscal 2024.

Discounted Cashflow API Get the discounted cash flow (DCF) valuation for a company, a method to estimate the value of an investment based on its expected future cash flows. Link: https://site.financialmodelingprep.com/developer/docs#valuation