Here are some of the major analyst moves in the artificial intelligence (AI) space this week. InvestingPro subscribers always have first access to the opinions of AI analysts who move the markets.

MSFT is still seen as a ‘recovery AI beneficiary’
Earlier this week, BofA Securities analysts commented on Alphabet (NASDAQ: GOOGL)'s latest earnings report. The auctioneer noted that while the technology company had failed to meet high expectations, the company had shown pace of growth in all key segments of its business.
Moreover, analysts believe that Google owners will continue to follow the ongoing AI boom.
“Although the quota did not meet high expectations, with comments suggesting the rapid growth in key business segments and the positive impact of Gen-AI integration, and a strong AI asset base, we believe Alphabet will still be a net AI beneficiary,” the analysts said. “I believe it will,” he said.
“We think there will be less restructuring and less legal stuff in '24. We expect EPS to be relatively stable and unchanged based on our 2025 P/E multiple of 21x, which will increase our PO from $175 to $173. “We have lowered it slightly, lowered our projected cash balance,” he added.

Morgan Stanley 'solidly' downplayed MSFT
Morgan Stanley analysts highlighted that with its latest quarterly results, Microsoft Corporation (NASDAQ:MSFT) has once again proven itself as one of the leaders in productive AI and demonstrated a "unique ability" to monetize this technology.
“Considering that this transformation cycle has only just begun and investors have already been rewarded with 23% EPS growth in FY2Q24 and additional positive EPS revisions for FY24, we clearly maintain OW,” they write.
Analysts say that MSFT is positioned as a key player in this upcoming GenAI wave, and that combined with efficient management and first-class cost-efficiency, the company's profit margins are based on a compound annual growth rate of 18% through fiscal 2026.
Raymond James Downgrades to Sell AMD Based on Valuation
Meanwhile, Raymond James downgraded Advanced Micro Devices Inc (NASDAQ:AMD) from Strong Sell to Moderate Sell while also raising its price target from $190 to $195.
The benefits received are based on evaluation.
“At 33x 2025 EPS, our analysis shows the stock is already discounting AI GPU (MI300) by ~20% unit share, closer to our estimates,” Raymond James analysts said.
“Stocks are discounting $7 EPS: The MI300 ramp is in its early stages and will likely double as sales accelerate. We expect AMD to deliver future earnings per share of $3.5 to $4 in 2025 with its core business. “For this to happen, AI graphics processing units (GPUs) would need to add about $12 billion in revenue at about $800,000 per share, or increase revenue by this amount,” he writes.
BofA raises NVDA PT to $800, “attractive valuation”
Ahead of a story scheduled for February 21, Bank of America analysts raised their stock price target on NVIDIA Corporation (NASDAQ:NVDA) from $700 to $800 on Saturday.
The bank reaffirmed its Buy rating and top-selection status for the stock, citing its ‘attractive valuation.’
In particular, analysts expect a significant but modest increase in performance of 3-5%, from $500 million to $1 billion, exceeding expectations in the unique FQ4 results and FQ1 outlook largely due to the benefit of additional supply but also constraints in China. and the temporary impact of the B100 accelerator until its scheduled launch in late 2024.
“This month's 3-5% overrun compared to the previous quarter's 10%/22% overrun may disappoint some speculators, but the more measured pace may provide more conducive ground for higher growth in CY25. “It will be perceived as being made,” analysts said.
Jefferies Still Sells on PLTR, Prefers Other AI Stocks
Jefferies analysts on Wednesday reaffirmed their $13.00 Sell rating and Value target for Palantir TechnologiesInc (NYSE:PLTR).
The setting for the fourth quarter appears to be a mixed picture with expectations for corporate growth, with challenging targets for corporate growth and the largest quarter-on-quarter increase over eight quarters or more.
“Investor sentiment remains very negative and our biggest concern is that others are making it clear that additional expectations have already been embedded in AIP and the stock is already trading at 14x/11x expectations. CY24E/CY25E rev; $13.00 stock price = 10 “We prefer them,” the analysts concluded their note.