Technology

Alphabet’s Efficiency Workstreams Shining Through, But Focus Is on AI Projects, Morgan Stanley Says

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Alphabet’s (GOOG, GOOGL) Q4 results late Tuesday showed the company’s efficiency workstreams shining through, even amid higher capital expenditures, but the focus is now on the company’s artificial intelligence projects, Morgan Stanley said in a note to clients on Wednesday. “Capex is heading higher, but we see a leading GenAI pipeline and incremental cloud and subscription rev opportunities [to further support ads],” the investment firm said, adding that Alphabet is “one of the best-positioned consumer-facing GenAI companies.” The company’s AI pipeline targeting consumers and advertisers is “flush” and ready to flow, the note said, as Alphabet is launching “multiple emerging GenAI tools for users and advertisers that we see driving more durable multi-year growth.” Morgan Stanley also noted that the benefits of Alphabet “durably re-engineering its cost base continue to show.” Alphabet’s “number of efficiency workstreams/projects continues to grow as product/process prioritization, simplified org structures/removing layers, slower headcount growth, infrastructure […]

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Microsoft Set for ‘Healthy Expansion’ in 2024 Operating Margins After Fiscal Q2 Beat, Morgan Stanley Says

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Microsoft (MSFT) is poised for a “healthy expansion” in fiscal 2024 operating margins after Q2 results topped forecasts with a boost from artificial intelligence, strong execution, and cost discipline, Morgan Stanley said Wednesday in a report. “Q2 results well illustrated Microsoft’s leading position in GenAI and unique ability to monetize this technology,” the investment firm said. On Tuesday, Microsoft reported Q2 earnings of $2.93 a share on revenue of $62.02 billion. Analysts polled by Capital IQ expected EPS of $2.77 on revenue of $61.13 billion. Morgan Stanley said Microsoft Azure posted a 28% growth in constant currency in Q2 with AI contributing “a remarkable” 6%. The EPS beat occurred amid hurdles related to accounting and AI investments, and mergers and acquisitions. The company’s Q3 gross and operating margin guidance stood “significantly ahead of expectations,” and Morgan Stanley said Microsoft’s solid execution, expense optimization and position in the GenAI innovation cycle

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AMD’s Q1 Revenue Guidance ‘Slightly Worse’ Than Consensus, BofA Says

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Advanced Micro Devices’ (AMD) Q1 sales outlook of $5.4 billion, plus or minus $300 million, was “slightly worse” than the consensus of $5.8 billion, BofA Securities said in a note Tuesday. The firm’s forecast is revenue of $5.5 billion. “Weak outlook is primarily in programmable chips, gaming and PC, deeper than expected,” BofA said. The firm also said that the company’s data center segment is “strongly on track” and points to “continued share gains” against Intel (INTC). BofA increased the data center sales forecast for AMD by 5% to 6% to $12 billion in 2024 and to $15.9 billion in 2025. The firm lowered its EPS estimates for the company to $3.62 from $3.83 in 2024 and to $5.07 from $5.20 in 2025. BofA maintained the buy rating and $195 price objective on AMD stock.

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AMD’s Big Gaming Correction Not Worrying UBS Analysts

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AMD’s projected slump in its gaming business isn’t worrying analysts at UBS. They say in a research note that the gaming segment is seeing a larger-than-expected correction, as the chipmaker forecasts an implied 30% sequential drop in gaming revenue in the next two quarters. Still, the analysts say AMD raised its implied revenue guidance for its data center business, which includes AI chips. That segment is core to their investment thesis, and they see it on track to generate half of revenue in 2024. “If this were AMD’s only business, this would have been a great result & guidance as momentum continues to grow,” they say. Shares fall 2.5% to $167.74.

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Meta Platforms Poised for Q4 Earnings Beat on Reels, AI Momentum, BofA Securities Says

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Meta Platforms (META) is likely to post Q4 results above consensus as analysts see upside potential on Reels momentum and artificial intelligence benefits, BofA Securities said in a note Wednesday. The social networking and virtual reality company is set to report Q4 financial results following the market close Thursday. Meta’s revenue for the three months ended Dec. 31 is seen rising 22% year-over-year to $39.3 billion, topping Street at $39.0 billion, BofA analysts said, adding “24% growth is possible.” BofA also sees Meta’s per-share Q4 earnings at $5.18, exceeding Street’s $4.89, and is projecting revenue for the current quarter in a range of $32.0 billion to $34.5 billion, bracketing the $33.6 billion Street view. “We remain constructive on Meta and see multiple tailwinds aiding (the) stock” during 2024, including upside potential for the company’s messaging platforms and its new artificial intelligence and machine learning integrations driving increased usage and advertising

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CrowdStrike Holdings (NASDAQ:CRWD) Stock Analyst Ratings

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CrowdStrike Holdings (NASDAQ:CRWD) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/31/2024 11.2% JMP Securities → $330 Reiterates Market Outperform → Market Outperform 01/30/2024 11.2% Raymond James → $330 Initiates Coverage On → Outperform 01/29/2024 11.2% JMP Securities $235 → $330 Maintains Market Outperform 01/18/2024 7.15% Keybanc $245 → $318 Maintains Overweight 01/17/2024 — WestPark Capital Downgrades Buy → Hold 01/16/2024 -2.28% Truist Securities $230 → $290 Maintains Buy 01/12/2024 -19.13% Cantor Fitzgerald → $240 Reiterates Overweight → Overweight 01/10/2024 7.83% Citigroup $275 → $320 Maintains Buy 01/09/2024 2.44% Morgan Stanley $203 → $304 Upgrades Equal-Weight → Overweight 01/05/2024 1.09% Oppenheimer $240 → $300 Maintains Outperform 12/21/2023 6.14% Rosenblatt $245 → $315 Maintains Buy 12/21/2023 9.51% Needham $250 → $325 Maintains Buy 12/15/2023 -9.02% BMO Capital $238 → $270 Maintains Outperform 12/15/2023 -7.34% Mizuho $225 → $275 Maintains Buy 12/11/2023 -9.36% JP

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Micron Technology (NASDAQ:MU) Stock Analyst Ratings

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Micron Technology (NASDAQ:MU) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/31/2024 — Keybanc Reiterates → Overweight 01/23/2024 16.71% Cantor Fitzgerald → $100 Initiates Coverage On → Overweight 01/19/2024 16.71% Raymond James $90 → $100 Maintains Outperform 01/16/2024 34.21% Keybanc $100 → $115 Maintains Overweight 01/04/2024 10.87% Piper Sandler $70 → $95 Upgrades Neutral → Overweight 12/21/2023 16.71% Evercore ISI Group $90 → $100 Maintains Outperform 12/21/2023 10.87% Wells Fargo $82 → $95 Maintains Overweight 12/21/2023 5.04% Raymond James $82 → $90 Maintains Outperform 12/21/2023 10.87% Wedbush → $95 Reiterates Outperform → Outperform 12/21/2023 63.39% Rosenblatt $100 → $140 Maintains Buy 12/21/2023 16.71% B of A Securities $95 → $100 Maintains Buy 12/21/2023 -6.63% Stifel $76 → $80 Maintains Hold 12/21/2023 10.87% UBS $90 → $95 Maintains Buy 12/21/2023 -12.76% Morgan Stanley $71.5 → $74.75 Maintains Underweight 12/21/2023 22.54% JP Morgan $90

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Apple (NASDAQ:AAPL) Stock Analyst Ratings

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Apple (NASDAQ:AAPL) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/31/2024 1.92% Rosenblatt → $189 Reiterates Neutral → Neutral 01/31/2024 34.81% Wedbush → $250 Reiterates Outperform → Outperform 01/30/2024 34.81% Wedbush → $250 Reiterates Outperform → Outperform 01/18/2024 21.33% B of A Securities $208 → $225 Upgrades Neutral → Buy 01/10/2024 7.85% Redburn Atlantic → $200 Downgrades Buy → Neutral 01/04/2024 10.54% Piper Sandler $220 → $205 Downgrades Overweight → Neutral 01/03/2024 -10.49% DA Davidson → $166 Initiates Coverage On → Neutral 01/02/2024 -13.72% Barclays $161 → $160 Downgrades Equal-Weight → Underweight 12/20/2023 34.81% Wedbush → $250 Reiterates Outperform → Outperform 12/11/2023 34.81% Wedbush $240 → $250 Maintains Outperform 12/08/2023 18.63% Morgan Stanley $210 → $220 Maintains Overweight 11/24/2023 29.42% Wedbush $240 → $240 Reiterates Outperform → Outperform 11/16/2023 29.42% Tigress Financial $225 → $240 Maintains Strong Buy 11/03/2023 1.92% Rosenblatt $198

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Qualcomm Fiscal Q1 Earnings, Revenue Rise; Q2 Guidance Set

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Qualcomm reported fiscal Q1 non-GAAP earnings Wednesday of $2.75 per diluted share, up from $2.37 a year earlier. Analysts polled by Capital IQ expected $2.37. Revenue in the quarter ended Dec. 24 rose to $9.92 billion from $9.46 billion a year earlier. Analysts surveyed by Capital IQ expected $9.52 billion. The company said it expects fiscal Q2 non-GAAP EPS of $2.20 to $2.40 on revenue of $8.9 billion to $9.7 billion. Analysts surveyed by Capital IQ project EPS of $2.24 on revenue of $9.3 billion.

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Qualcomm 1Q Revenue Tops Estimates on Growth in Handsets, Automotive

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By Denny Jacob Qualcomm logged better-than-expected revenue in the latest quarter, led by growth in handsets and automotive in its QCT segment. The mobile-phone chip maker posted net income of $2.77 billion, or $2.46 a share, for the fiscal first quarter ended Dec. 24, up from $2.24 billion, or $1.98 a share, a year earlier. Adjusted earnings were $2.75 a share, above analysts’ estimates of $2.37. Revenue increased 5% to $9.94 billion from $9.46 billion. Analysts polled by FactSet expected $9.51 billion. By segment, revenue in QCT grew 7% to $8.42 billion while QTL edged down 4% to $1.46 billion. QCT’s revenue streams consist of handsets, automotive and internet of things. Revenue in handsets and automotive grew 16% and 31%, respectively, from a year earlier, while IoT dived 32% during the same period. Qualcomm, which sells communication and data-processing chips crucial in phones from Apple and Samsung, forecast revenue between

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