Buy these 5 tech stocks with only upside, including these artificial intelligence beneficiaries | Wilnesh News
Wall Street analysts say a range of top technology stocks are expected to rise in the second quarter. Several investment firms said this week that many of them have more room to operate as the artificial intelligence boom continues. CNBC Pro compiles Wall Street research to find tech stocks worth buying as the second quarter begins. They include Microsoft, Amazon, Pinterest, Alphabet and Nvidia. “We believe MSFT has positioned itself as a major beneficiary of Gen AI as a result of its partnership with OpenAI,” Jefferies analyst Brent Thill said earlier this week. The company raised its price target on Microsoft to $550 a share, the highest on Wall Street, from $465. Thiel said the tech giant is well-positioned to reap stock gains as it moves deeper into artificial intelligence. “In addition, we believe that artificial intelligence products will increase profits over time due to their strong pricing power,” he wrote. In addition, he added that its cloud computing unit Azure has a lot of room to grow. Analysts note that Azure should also benefit from OpenAI. The stock is up 13% this year, but Thiel said now is the time to start adding to his holdings. He said: “While physical revenue is not likely to emerge until the late 24th to 25th century, and semi-finished products outperform software, investors should start planning now.” Bank of America said Alphabet lags behind many large technology peers, but this Home search giant is worth buying. The company ranked the stock as its top idea for the second quarter. “Alphabet stock underperformed the broader market and peers in 1Q24,” analyst Justin Post wrote. However, he said the company indicated there is no shortage of positive catalysts ahead. Analysts noted that these include the benefits of artificial intelligence and search growth, as well as further cost-cutting measures in the future. “We also see potential in Q2 reviews (earnings calls and industry events) that integrating artificial intelligence into search can help with usage and monetization,” he said. Alphabet is expected to report earnings later this month. The stock is up 9.2% this year, but Post said the stock’s valuation is “reasonable relative to historical levels” and investors should quickly buy into the company. Evercore ISI said of the social media company, “This is a ‘T’ (trillion) advertising market opportunity with strong long-term drivers.” Analyst Mark Mahaney said Pinterest’s stock price has such a chance to rise So big that the company hasn’t even scratched the surface. “Pinterest offers advertisers a differentiated pipeline to reach users with a rare combination of scale and high purchase intent,” he wrote. The company also said Pinterest has plenty of other revenue levers it can leverage, including a deal with Amazon. alliance. Last year, the social media service announced a third-party advertising partnership with Amazon. “The Amazon partnership has the potential to generate substantial incremental advertiser demand for the Pinterest platform,” he added. Mahaney said he sees evidence that “ad spending is at least stabilizing and possibly improving,” which is another positive for Pinterest stock. The stock will fall more than 7% in 2024. Amazon – Wells Fargo, Overweight Rating “We reiterate our Overweight rating and Signature selection while also adding AMZN to the list of tactical ideas for Q2 2024. Increase PT to $217 from $211, based on 2026 EPS Update 30x…Amazon (OW) North American retail OI (operating income) margins are at a positive inflection point, with AWS revenue growth unlocking the company’s profitability.” Alphabet – Bank of America, Buy Rating “In 2024 In the first quarter, Alphabet stock underperformed the broader market and peers. … We also see potential in the second quarter comments that the integration of artificial intelligence into search helps usage and monetization … GOOGL’s average P/E ratio is With a trailing ten-year GAAP P/E of 22x, we believe our P/E is reasonable compared to history given expectations for double-digit revenue growth, cloud margin expansion and opportunities to leverage AI assets .” Microsoft – Jefferies, Buy “While substantial growth isn’t likely until late ’24 to late ’25, and Semis outperforms software, investors should start positioning now. … We believe , MSFT has positioned itself as a major beneficiary due to its partnership with OpenAI… Additionally, we believe AI products, due to their strong pricing power, will increase margins over time…” Pinterest – Evercore ISI , an Outperform Rating of “‘T’ (Trillion), a strong long-term tailwind to the advertising market opportunity. …PINS provides advertisers with a differentiated channel to reach users with a rare combination of scale and high purchase intent. …The AMZN partnership has the potential to generate material incremental advertiser demand for the PINS platform…Evidence of digital ad spend, although brand advertising was scaled back in early October, is at least stabilizing and may be improving.” Nvidia – Mizuho, Buy rating “We have a Buy rating on NVDA with a PT of 1,000x and F26E EPS of approximately 31x, within its historical range of 15-67x, which we believe is appropriate as NVDA continues to trade on overall hardware Dominate the field of artificial intelligence. Despite recent investor concerns about lost sales in China and the loss of some momentum in the artificial intelligence trade, we continue to provide software and increase artificial intelligence server content for GPUs, DPUs, CPUs, etc.”
