Technology

Apple Is No Longer a Top Idea at Goldman Sachs. Could It Be a Lack of Clarity on AI? — Barrons.com

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By Angela Palumbo Apple stock has fallen nearly 8% this year and a move by Goldman Sachs to remove the tech giant from its “Conviction List” on Friday has only sent the shares lower. Goldman Sachs analysts removed Apple from the U.S. Conviction List on Friday after the stock spent 274 days there. The list includes between 20 and 25 “of what we believe to be our most differentiated fundamental Buy ideas across our U.S. stock coverage,” the firm said. Shares of Apple were down 1.5% Friday to $178.01. Goldman Sachs didn’t clarify the exact reasoning for removing Apple from the list. In the research note, the firm said there are many reasons a stock could get removed, including a rating downgrade, price realization, the passage of catalysts, or the subcommittee believing there are better opportunities elsewhere. Apple has been lagging its peers this year in the Magnificent 7 — […]

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Intelligent Edge to Drive Energy Efficiency, Environmental Sustainability, Analog Devices’ Cotter Says

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The application of “intelligent edge” to industrial processes will have a positive impact on energy efficiency and environmental sustainability, Martin Cotter, Analog Devices’ (ADI) president of Europe, the Middle East and Africa, said at the Mobile World Congress in Barcelona. “Edge” is a term used in technology to describe where data is generated such as a smartphone, a robot in a factory or sensory technology in a hospital. Adding cloud capabilities to the site where data is generated is called “intelligent edge.” “Transformation of industry through digitalization of factories and buildings is going to have such a big impact on sustainability,” Cotter said. “The need to drive more efficiency on every Joule of energy is critical. Everybody talks about energy. So, therefore, having smarter edge is one way to really deliver on that efficiency.” Industrial output increased about 90 times from 1820 to 2020, but that came at a cost:

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CFRA Maintains Buy Opinion On Shares Of Broadcom Inc.

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We up our 12-month target to $1,500 from $1,100 on a higher revised P/E of 26.4x our CY 25 EPS view, above historical given increasing exposure to recurring software and EPS upside. We keep our FY 24 (Oct.) EPS at $49.16 and FY 25’s at $56.90. Ahead of Jan-Q results set for March 7 after the close, we see upside to Jan-Q and FY 24 margin/revenue expectations. On the semi side, we see greater AI contribution following commentary from peers/customers, on higher Ethernet and custom AI demand (20% of semi sales in Oct-Q). We like VMware prospects (60% of software sales), as we think it will allow software growth to accelerate in the coming quarters/years, with it focusing on growing VMware Cloud Foundation and becoming mostly subscription-based

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CFRA Maintains Strong Buy Opinion On Shares Of Marvell Technology, Inc.

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We boost our 12-month target to $84 from $70 on a revised P/E of 30x our CY 25 EPS view, above peers but below historical. We keep our FY 24 (Jan.) EPS view at $1.51, FY 25 at $2.31, and FY 26 at $2.79. Ahead of Jan-Q results set for after the close on 3/7, we look for revenue of $1.42B and EPS of $0.46 (flat for both Y/Y). All eyes will of course be on AI revenue, which is largely driving growth for its data center segment (half of total sales). We note AI revenue appears on pace to blow through its previously guided FY 25 run rate of $800M, on greater momentum from both its optics and custom silicon solutions (about half of total from

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Veeva Systems Cites ‘More Optimism’ Among Large Pharma Customers Amid Macro Hurdles, UBS Says

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Veeva Systems (VEEV) cited “more optimism” among top pharmaceutical customers as macro hurdles persist, UBS Securities said Thursday in a report. Veeva’s outlook “hints at overall demand stabilization or perhaps a H2 improvement,” UBS said. “We expect the stock to find support given the green shoots of improvement and a likely upward revision” to the consensus for free cash flow, UBS said. Veeva’s plans to subsidize service costs associated with migration to the new Vault CRM product will lessen the risk of losing customers to Salesforce (CRM), UBS said. UBS reiterated its neutral rating on Veeva’s stock and kept the price target at $235. At least six other analysts raised their price targets after Veeva reported Q4 results Thursday that topped consensus estimates. Veeva shares fell 1% in recent Friday trading.

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Google Faces a Real AI Threat in Search. Why It Might Be Time to Worry. — Barrons.com

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By Eric J. Savitz Google is one of the best businesses ever built. The Alphabet unit controls more than 90% of the global internet search market, which allows the company to sell an astonishing amount of advertising, $238 billion worth in 2023 alone. But the market now fears it could all come unglued by a torrent of new competition from artificial intelligence. To be sure, it hasn’t happened yet. By one estimate, Google still accounts for 39% of the global ad market. Alphabet is the fifth-largest U.S.-listed company by market value, at $1.7 trillion, trailing only Microsoft, Apple, Nvidia, and Amazon.com. Long-term investors, meanwhile, have been more than rewarded. Had you invested $1,000 in Google shares at the August 2004 initial public offering, you’d have more than $55,000 today. But the Alphabet story is finally showing cracks. At a recent $138, shares are flat this year, trailing the 8% gain

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Dell Poised to Benefit From AI Server Strength, Likely PC Refresh Cycle, UBS Says; Stock Soars

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Dell Technologies (DELL.US) is expected to benefit from strength in artificial intelligence-optimized servers and a likely refresh cycle in personal computers, UBS Securities said in a note. Late Thursday, Dell reported an AI server backlog of $2.9 billion at the end of the fiscal year, which UBS said reflected an increase from $1.6 billion at the end of last quarter. The computer maker shipped $800 million of AI-optimized servers, implying AI orders were “strong” at $2.1 billion, UBS analysts David Vogt and Andrew Spinola wrote. “While the proliferation of AI infrastructure assets is in the early innings, the solid results this quarter particularly after the soft order intake ($100 million) in the final month of last quarter should be well received by the market,” Vogt and Spinola said in the note emailed Friday. The brokerage raised its price target on Dell’s stock to $113 from $99 to reflect stronger near-term

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Apple Could Take This Bull Market Down — Barron’s

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By Jacob Sonenshine The stock market just doesn’t want to go down right now, but no one should let their fear of missing out on gains override their risk management. Nothing looks like it can stop the market. The Nasdaq Composite is on pace to close at a new all-time high, up 1.6% for the week, while the S&P 500 is on pace to close the week up 0.8%, which would also be a record. The benchmark index has now risen for two consecutive weeks. We know what investors are thinking. The gains can keep coming, driven by an economy that is neither too hot nor too cold. The personal consumption expenditures price index rose 2.4% year over year in January, in line with estimates, and durable-goods orders came in lower than expected. The economy is growing, but only moderately, and the Federal Reserve can keep thinking about when it

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Dell 4Q Revenue Beats Estimates

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Dell is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. For the fourth quarter, Dell posted revenue of $22.3 billion, down 11% from a year earlier. The figure was within the company’s guidance of $21.5 billion to $22.5 billion, and ahead of the analysts’ consensus as tracked by FactSet of $22.2 billion. Earnings on an adjusted basis were $2.20 a share, well ahead of the street consensus of $1.73 a share and the company’s forecast for $1.70 a share. Dow Jones & Co. owns Factiva.

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Dell’s Comments About AI Servers ‘Stole the Show,’ Morgan Stanley Says

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Dell Technologies’ (DELL) remarks around artificial intelligence servers were encouraging and showed the company’s AI story is in early days and “gaining momentum,” Morgan Stanley said Friday. The computer maker late Thursday delivered better-than-expected fiscal Q4 results. The management’s AI server commentary “stole the show,” with backlog almost doubling and orders increasing about 40% sequentially, Morgan Stanley said in a note. The brokerage raised its price target on the Dell stock to $128 from $100. “While Dell has had a phenomenal run over the last 12 months, we believe there is still further outperformance to capture, and a hard catalyst to drive this re-rating, allowing us to reinstate Dell as our top pick,” Morgan Stanley said. The company’s shares were up nearly 26% in recent trading.

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