InvestingPro subscribers have the advantage of accessing market-moving insights on AI from top analysts. Goldman Sachs analysts have released their 2024 outlook for IT Hardware and networking equipment providers, highlighting the continued outperformance of AI beneficiaries in the coming year. Among their top picks are Arista Networks, which is expected to benefit from the growing capex of its key hyperscale customers, and Dell Technologies, which should see increased demand for AI servers as infrastructure investments expand.
Bank of America analysts have maintained NVIDIA Corporation as a Top Pick in the chip sector, emphasizing the company’s genAI dominance and its potential to generate significant free cash flow over the next two years. On the other hand, DA Davidson analysts have initiated research coverage on NVDA stock with a Neutral rating, anticipating a decrease in investment in generative AI beyond 2024.
Morgan Stanley analysts share key takeaways from their conversation with experts from Stanford University on AI regulation. They believe that the development and implementation of AI regulation in the US will not be immediate, citing resource constraints at the Federal agency level and asymmetrical information between government and industry as potential hindrances.
Meanwhile, two major AI beneficiaries from 2023, MongoDB and Palantir Technologies Inc, have seen their ratings cut this week. UBS downgraded MongoDB after its significant rally in 2023, citing the lack of material revenue pull-through from AI workloads in 2024. Jefferies analysts downgraded Palantir, expressing concerns about the stock’s unsustainable valuation levels driven by AI euphoria and retail trading momentum.
William Blair analysts initiated research coverage on UiPath with an Outperform rating. They recognize UiPath as a leader in workflow automation and process optimization, providing a platform that automates manual workflows and addresses complex and enterprise-grade processes. Analysts believe that UiPath will deliver durable growth and expanding margins in the coming years.
Overall, analysts agree that AI regulation in the United States is still in its early stages and will take years to implement effectively. Despite potential challenges, the outlook for AI beneficiaries remains positive, with continued growth and opportunities in the AI sector.
The source of the article is from the blog crasel.tk