Analysts at major banks revised ratings and price targets on Tuesday, reflecting shifting views on exposure to artificial intelligence and competitive pressures in cloud and software markets.
Raymond James upgraded Advanced Micro Devices to Strong Buy from Outperform, citing the company’s positioning in AI-enabled server CPUs. Analyst Simon Leopold raised the price target and extended the firm’s AI Factory framework to the server CPU market, projecting the segment will grow at a 5-year compound annual rate of 44% to reach approximately $201 billion by 2030. The breakdown includes $33.5 billion in legacy datacenter CPUs, $83 billion in high-end AI CPUs, and $85 billion in agentic CPUs. Nvidia’s long-term framework targets $200 billion, while AMD’s internal model reaches $220 billion under more aggressive adoption scenarios.
UBS downgraded SAP from Buy to Neutral and raised the price target to €201 from €164. The move follows SAP’s delivery of only 17 ready-to-use AI agents, with 15 more in expansion, against a year-end target of 200. Last year, SAP aimed for over 40 agentic AI scenarios and delivered 10. UBS also noted a slight deceleration in Cloud Current Backlog growth to 23% for the full year, down from 24.6% in the second quarter. SAP reduced its fiscal 2026 EBIT guidance by €100 million due to acquisition dilution and is no longer expected to meet its Rule of Forty target this decade, with UBS projecting 37.0% by 2030.
Bank of America maintained its Buy rating and €2,452 price target for ASML, calling the stock a preferred choice in semiconductors. ASML trades at a 7.7x discount to its historical EV/EBIT multiple of 20.3x for 2027, compared with a median of 28.0x, and at a 1.6x discount to global peers while major U.S. peers trade at a 6.1x to 7.0x premium. Consensus estimates project ASML to achieve the second-highest revenue growth among large-cap semiconductor peers at 27% CAGR and the highest earnings growth at 39%, with a 4.6 percentage-point gross margin gain over the next three years. The firm assumes 2026 wafer fab equipment spending of $160 billion, implying a lithography intensity of 26%.
JPMorgan and Bank of America downgraded Intuit to Neutral following weaker-than-expected guidance that signaled competitive pressures extending beyond TurboTax. The companies now project fiscal 2027 revenue of $23.28 billion to $23.51 billion, implying 9% to 10% growth, down from 14% in 2026 and below the $23.72 billion consensus. Fourth-quarter revenue rose 13.6% to $4.35 billion, beating estimates of $4.27 billion. JPMorgan cut its December 2027 price target to $331 from $605, while Bank of America reduced its target to $360 from $400, noting online customer growth in the business segment slowed to 3% year-over-year.
Northland Capital Markets upgraded Semtech to Outperform with a $182 price target. Analyst Gus Richard highlighted datacenter revenue, now 30% of total sales, projected to reach 44% by the end of 2027, pushing gross margins into the mid-60s. Second-quarter adjusted EPS was $0.71 on revenue of $342 million, above consensus of $0.61 on $328 million. Infrastructure sales rose 25% sequentially and 69% year-over-year to $124 million, while datacenter revenue hit a record $100 million, up 91% year-over-year.
