Wall Street analysts have singled out several clear market favorites. These stocks are garnering “strong buy” ratings and continuous price target upgrades, a testament to robust earnings outlooks, positive forward guidance, and ever-increasing demand for their offerings. This analyst enthusiasm plays a pivotal role in boosting sentiment and driving investor interest in these rising stars.
Let’s delve into a few analyst upgrades expected to power impressive returns in 2024:
IBM (NYSE:IBM)
Bank of America recently upped its price target for IBM from $200 to $220, maintaining a “buy” rating. Analysts applaud IBM’s ongoing turnaround trajectory, emphasizing its “defensive portfolio, attractive dividend yield, and underappreciated AI capabilities.” This confidence shines through in IBM’s impressive stock performance – a 53% gain within the past year and an 18% year-to-date increase.
This optimism follows IBM’s remarkable quarterly results and strategic decision to streamline its marketing and communications with a greater emphasis on artificial intelligence. CEO Arvind Krishna underscores the company’s commitment with plans to replace 8,000 jobs through AI integration, alongside a massive upskilling effort in AI for all employees.
Nvidia (NVDA)
Chipmaking giant Nvidia has analysts buzzing after delivering a stellar earnings report for the final quarter of 2023. Bank of America promptly boosted their price target to $1,100 per share (from $925), representing a potential 25% upside. Meanwhile, Mizuho Financial Group raised their price target to $1,000 (from $850).
Interestingly, these upgrades come on the heels of an incredible 240% surge in NVDA’s stock price over the past 12 months, including an explosive 82% jump in the first 10 weeks of this year alone. Analysts remain unfazed, seeing continued momentum propelled by the rapidly increasing demand for Nvidia’s AI-powered chips.
“Nvidia’s dominance in the AI chip market is undeniable. As demand for generative AI applications explodes, the company stands to benefit significantly,” remarks a senior tech analyst.
Advanced Micro Devices (AMD)
Nvidia’s main rival, Advanced Micro Devices, is also capturing analysts’ attention. Mizuho raised AMD’s price target to $235 (from $200) with a “buy” rating, projecting further growth fueled by the booming AI chip sector.
Mizuho’s upgrade coincided with AMD’s unveiling of a new AI chip tailor-made for the Chinese market and designed to comply with U.S. trade restrictions. If approved for sale in China, this development could revolutionize AMD’s trajectory, driving significant gains in earnings and stock price. AMD’s stock has already achieved a nearly 40% increase in 2024 to date.
“The AI landscape is fiercely competitive, and AMD’s commitment to innovation keeps it in the race,” says a leading semiconductor analyst. “A potential entry into the vast Chinese market could be a major turning point.”
