Microsoft Upgraded: Best-Positioned Tech Stock Amid Slowing Consumer Demand

D.A. Davidson upgraded Microsoft (NASDAQ:MSFT) to Buy and raised its price target to $450 from $425, citing a more disciplined capital expenditure (capex) strategy and strong positioning among mega-cap tech firms.

• Microsoft has streamlined its capex approach, improving margins and return on invested capital.
• The company has guided for flat capex growth heading into FY26, signaling an end to the AI infrastructure spending war.
• Microsoft is also offloading AI infrastructure costs to partners like CoreWeave, Oracle (NYSE:ORCL), and SoftBank (TYO:9984).
• Analysts believe Microsoft is a defensive play with limited consumer exposure compared to other Mag6 stocks.

Market Data for Microsoft Investors

• Company Rating API - Evaluate Microsoft's financial health and investment potential.
• Earnings Calendar API - Track upcoming earnings reports for Microsoft.

Tesla Faces 40% More Downside as Sales Decline

Wells Fargo reiterated its Underweight rating on Tesla (NASDAQ:TSLA) and cut its price target to $130 from $135, citing:

• Weak fundamentals, with sales down 16% YTD.
• European sales plunging 45% in January and 41% in February.
• Chinese sales down 14%, while U.S. sales fell 11% in January.
• Q1 2025 delivery estimates cut to 360,000 units, down 27% QoQ and 7% YoY.
• Analysts warn that price cuts are losing their impact, competition in China is intensifying, and the new Model “2.5” may cannibalize Model 3/Y sales.

Key Metrics for Tesla Investors

• Market Biggest Gainers API - Identify if Tesla rebounds among the top market movers.
• Earnings Historical API - Analyze Tesla's past earnings trends.

Intel Upgraded on New CEO Appointment

Bank of America (BofA) upgraded Intel (NASDAQ:INTC) to Neutral from Underperform, raising the price target to $25 from $19, following the appointment of Lip-Bu Tan as CEO.

• Tan previously led Cadence Design (NASDAQ:CDNS) to a 32x stock appreciation vs. SOX's 16x.
• His expertise in electronic design automation (EDA) is expected to benefit Intel's relationships with Cadence and Synopsys (NASDAQ:SNPS).
• Analysts noted Intel's potential foundry joint venture with TSMC, which could support its turnaround strategy.

Super Micro Computer Upgraded on AI Growth

Rosenblatt reinstated coverage of Super Micro Computer (NASDAQ:SMCI) with a Buy rating and a 12-month price target of $60, citing:

• AI revenues now account for 70% of total sales, providing 1-2 years of revenue visibility.
• Strong position in AI computing, benefiting from Green computing, liquid cooling, and modular architectures.

Citi Upgrades Xpeng on EV Sales Growth

Citi upgraded Xpeng (NYSE:XPEV) to Buy, raising the price target from $13.70 to $29.00, driven by:

• Stronger projected vehicle sales for 2025 (480,000) and 2026 (580,000).
• Revenue projections increased to Rmb79.2B in 2025 and Rmb93.3B in 2026.
• AI and robotics focus as potential long-term growth drivers.

Conclusion

This week's analyst ratings highlight:
✔ Microsoft as a top defensive play in tech.
❌ Tesla facing significant downside risks from weak sales and competition.
✔ Intel getting a potential turnaround boost from new leadership.
✔ Super Micro and Xpeng benefiting from AI and EV tailwinds.

Investors should watch upcoming earnings reports and market sentiment to gauge future stock movements.