Investing.com — These are the biggest artificial intelligence (AI) analyst moves for the week.
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2025 could be peak for Nvidia stock: DA Davidson
In a note dated Thursday, analysts at DA Davidson suggested 2025 could be a peak year for shares of Nvidia (NASDAQ: ), maintaining a cautious view on the company’s long-term outlook.
Despite Nvidia’s strong performance over the past year, the company has raised questions about its ability to meet expectations for 2026, describing its forecast for that year as “street-low.”
DA Davidson initiated coverage on Nvidia in January 2024 with a Neutral rating, indicating significant concerns that have positioned the company among the most conservative voices on Nvidia’s future prospects. This cautious view remains unchanged, and the company reiterated its Neutral rating and $135 price target, reflecting a 35x multiple.
“We remain cautious about NVDA’s ability to meet consensus expectations for CY2026 and beyond,” the company’s analysts said, noting that while 2025 may represent a peak, sustaining growth beyond that could prove challenging.
Among the company’s key concerns are supply-side disruptions, including sales restrictions in China and quality issues with Nvidia’s Blackwell products. However, DA Davidson noted that these challenges could “actually lengthen the cycle”, as supply constraints can help sustain demand in the short term.
However, prosecutor Davidson predicts a potential slowdown in 2026.
“In the short term, we expect investors to focus on supply-side disruptions, specifically sales constraints in China, as well as Blackwell’s quality issues,” the company commented, adding that “the long-term driver will remain demand.”
Morgan Stanley sets Tesla’s bag at $800
Earlier in the week, Morgan Stanley (NYSE: ) raised their price target on shares of Tesla Inc (NASDAQ: ) to $430 from $400, with a new estimate of $800.
The Wall Street firm attributes the upgrade to Tesla’s advances in autonomous vehicle (AV) technology and its integration of embodied artificial intelligence, which are seen as key drivers of future growth.
The report highlights Tesla’s unique expertise in data collection, robotics, energy storage and AI infrastructure, positioning the company as a leader in the autonomous mobility market.
Tesla Mobility, the company’s autonomous driving division, is valued at $90 per share in an updated sum-of-the-parts (SOTP) model. The department’s fleet is projected to expand to 7.5 million vehicles by 2040, generating $1.46 in revenue per mile with a 29% EBITDA margin.
Morgan Stanley also highlights the growing importance of Tesla’s online services, which include recurring revenue streams such as full self-driving (FSD), supercharging and software updates.
This segment is expected to account for one-third of Tesla’s total EBITDA by 2030, rising to nearly 60% by 2040. The Network Services division is now valued at $168 per share, reflecting its growing importance within Tesla’s overall business model.
“We raise our price target to $430 from $400 previously, driven by an increase in our mobility and network services estimates and partially offset by a decrease in our third-party battery business estimate,” analysts led by Adam Jonas wrote.
The bank notes that Tesla’s potential in embodied artificial intelligence extends beyond vehicles to areas such as aerospace and marine, although those capabilities are not yet included in the assessment. Analysts expect Tesla’s unsupervised autonomous fleet to be up and running in urban environments by 2026, but don’t expect widespread deployment before 2030.
While the new administration may reconsider self-driving policy nationally, Tesla still faces “significant hurdles” in technology, testing and permitting near-term commercialization, analysts added.
Morgan Stanley’s big case assumes a fleet size of 12 million vehicles by 2040, generating $1.50 in revenue per mile with a 45% EBITDA margin, driven by international expansion and improved pricing power.
On the other hand, the lower valuation of $200 per share reflects challenges such as tighter regulations and slower geographic adoption.
AMD was downgraded at Wolfe Research
Wolfe Research downgraded shares of Advanced Micro Devices Inc (NASDAQ: ) to Peer Perform from Outperform, pointing to reduced expectations for the company’s data center GPU revenue in 2025.
Analysts are now projecting $7 billion in revenue for the segment, down sharply from a previous estimate of over $10 billion.
“We now expect $7 billion in DC GPU revenue for CY25 versus our previous expectation of more than $10 billion,” Wolfe Research wrote in a note. They also believe that AMD will refrain from providing guidance for this segment during its upcoming fourth quarter earnings call.
The downgrade followed a visit to Asia, where ODM’s build plans suggested only modest growth for AMD.
“We estimate data center GPU revenue in the range of $1.5-2.0 billion for 4Q and $7 billion for CY25,” Wolfe analysts added, noting that the figures were well below customer expectations of approx. 10 billion dollars.
The challenges extend to other parts of AMD’s business. Analysts forecast a 17% sequential decline in the client segment for Q1 2025 due to weak demand for PCs, a 20% drop in gaming revenue and a lack of immediate recovery in the embedded device segment, which could improve later in the year.
In light of these adjustments, Wolfe Research lowered its 2025 forecasts for AMD’s total revenue and earnings to $29.9 billion and $4.19 per share, down from previous estimates of $33.6 billion and $5.33 dollars per share.
On the more positive side, Wolfe Research expressed some optimism for AMD’s upcoming MI350 series, which is expected to be released in the second half of 2025.
TD Cowen Raises SAP Shares to Buy
TD Cowen upgraded SAP SE ADR (NYSE: ) shares to Buy from Hold, raising their price target to $305 from $240.
The upgrade is supported by survey data showing a significant increase in cloud enterprise resource planning (ERP) priorities, with AI emerging as a key driver of ERP migration.
“The combination of accelerating growth + margin expansion is poised to persist through ’27 and put further upward pressure on value,” analysts led by Derrick Wood wrote in a Thursday note.
TD Cowen 2025 Software (ETR:) The spending survey found that ERP rose to third place out of 11 categories in SaaS spending priorities, up four spots from its previous ranking. Additionally, quarterly SAP partner surveys in the fourth quarter indicated improved performance and a stronger growth outlook for 2025, with growth expected to +7%, compared to +2% at the same time last year.
The company highlights the strong demand for Cloud ERP, which has shown resilience in 2024 and is expected to accelerate over the next three years. This growth is driven by factors such as 2-3x higher revenue conversion from cloud migrations, the end-of-life of SAP’s legacy ECC product in 2027, and higher attachment rates for adjacent products.
The company is also expected to benefit from reduced workloads from IaaS and transactional products, along with an increase in average selling price (ASP) from new AI and data offerings.
According to TD Cowen, SAP will leverage AI in two main ways: as a catalyst to accelerate Cloud ERP migrations and by monetizing GenAI features in its Premium SKU, which offers a roughly 30% price increase.
For its upcoming Q4 earnings report on January 28, TD Cowen expects SAP to hit another five-year high in Cloud growth.
TD Cowen analysts model Cloud growth accelerating nearly 200 basis points to approximately 29% at constant currency (cc), above Street expectations of around 28% cc. Furthermore, recent strength in the US dollar is predicted to provide a tailwind, prompting TD Cowen to raise its FY25 estimates.
The combination of accelerated growth and expanding margins is expected to continue to fuel upward momentum in SAP’s valuation, analysts said.
Snowflake top pick at Oppenheimer for 2025
Oppenheimer analysts reaffirmed Snowflake Inc (NYSE: ) as a top pick for 2025, citing strong expectations for the company’s performance and strategic growth initiatives. The company also raised its price target on the stock to $200 from $180.
The positive view is based on several key factors that position Snowflake for potential outperformance.
First, Oppenheimer points to a favorable setup for FY26, with consensus-aligned initial guidance that could offer mild growth.
Analysts expect a “beat-and-raise rhythm” throughout the year, driven by new product launches and increased AI workloads. Innovations such as Snowpark, Dynamic Tables and Cortex are predicted to drive higher spending and accelerate revenue growth.
The investment bank also points to a change in its outlook regarding Iceberg. While concerns over the loss of storage revenue in FY25 initially clouded expectations, Oppenheimer now sees Iceberg as a growth catalyst for FY26. Analysts believe it will play a significant role in boosting spending and boosting Snowflake’s revenue.
Momentum in Cortex and AI is another critical driver, according to the note. As cloud independence and the large language model (LLM) gain traction, customers are increasingly encouraged to build applications on Snowflake’s platform, leveraging its advanced capabilities to handle AI workloads.
Finally, Oppenheimer anticipates an increase in operating margin as investment levels normalize following a period of increased spending in FY25, creating opportunities for improved profitability.
“Net, we see good support for improving spending with room for growth from new products, expanding use of artificial intelligence and better margins,” the analysts concluded.
