2023-12-18 20:22:29
The Week in Artificial Intelligence: Intel, Nvidia, Meta Platforms, Broadcom, Dell, and HP Enterprise
This week saw major developments in the world of artificial intelligence (AI) with big moves from industry giants like Intel, Nvidia, Meta Platforms, Broadcom, Dell, and HP Enterprise. Here’s a summary of some of the key announcements and insights from analysts in the AI sector.
1. Intel Releases New Chips
Intel Corporation (NASDAQ: INTC) made headlines with its “AI Everywhere” event, where it unveiled the first E-Core Xeon server CPUs codenamed Emerald Rapids. The company also launched AI-optimized Core Ultra CPUs as part of its Meteor Lake series, featuring a chiplet-based design with CPUs, embedded GPUs, and NPUs to enhance AI capabilities. Analysts at Keybanc weighed in, expressing the need for further proof of Intel’s ability to compete in the AI field.
2. Nvidia Becomes a “Budget AI” Stock
Bernstein analysts noted the rising price of Nvidia (NASDAQ: NVDA) shares, but also pointed out that the stock is now at its cheapest since late 2018 and traded at a discount to the semi-focus SOX index for the first time in nine years. Analysts remain confident in the long-term opportunities ahead for Nvidia and view the current price as reasonable, given the company’s future prospects.
3. UBS Analyzes GenAI Meta Search Opportunities
UBS analysts expressed bullishness on Meta Platforms’ (NASDAQ: META) AI prospects, citing the company’s commitment to growing search volume by extending Bing’s search capabilities to more AI personalities. The analysts estimated the potential search value and earnings per share (EPS) from Meta’s GenAI app and expect a focus on the monetization of Meta’s genAI chatbot in the future.
4. Broadcom has “Best-in-Class Profitability”
Broadcom Inc (NASDAQ: AVGO) received positive reviews from analysts, who adjusted the company’s target to $1,250 per share. Analysts highlighted the potential for VMWare, following its acquisition by Broadcom, to drive AVGO EPS to $60 in 2025. The analysts also discussed AVGO’s AI opportunities and the importance of strong product development relationships with hyperscalers.
5. The Winner of the AI Server Competition
Bernstein analysts weighed in on the AI server competition, expressing confidence in Dell’s (NASDAQ: DELL) AI server orders increasing, compared to less confidence in HP Enterprise’s (NYSE: HPE) AI server prospects. They noted that AI servers would benefit server OEMs if AI inference happens on-premises or at the edge instead of in the cloud and expressed confidence in the mid- to long-term AI server prospects for OEMs.
Overall, it was a week of significant developments and positive outlook for the AI sector, with major players making strategic moves to capitalize on the potential of artificial intelligence in various domains.
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