The AI sector is seeing significant activity across investments, stock ratings, and technological advancements. AMD has received a 'buy' rating from Melius Research, with analysts predicting a potential 36.5% surge in its stock price, targeting $175, due to its progress in AI chips and computing systems, particularly GPUs for 2026-2028. However, billionaire David Tepper's Appaloosa fund has reduced its stakes in both Nvidia and AMD, shifting investments to Broadcom, whose Jericho3-AI fabric enhances GPU connectivity. Nvidia, Taiwan Semiconductor Manufacturing (TSMC), and Broadcom are considered strong AI stock investments, with Nvidia's GPUs powering much of AI technology. Despite the optimism surrounding AI, analysts suggest selling Palantir and C3.ai stocks, citing valuation and profitability concerns. Geopolitical uncertainty is also playing a role, with Wells Fargo analysts noting that it creates an attractive environment for AI-related trades as countries seek competitive advantages in defense and cybersecurity. Investment is also flowing into AI applications beyond chipmakers, with Eurazeo leading a $20 million investment in aedifion, an AI energy platform for property management, and Spotify CEO Daniel Ek investing $694 million in Helsing, an AI war tech firm. Apple, considered an AI laggard, is reportedly considering acquiring Perplexity AI to enhance its AI capabilities and reduce reliance on Google. Morningstar highlights AI as a key investment theme, with AI and Big Data funds seeing substantial growth. Finally, Nvidia's stock performance may lead to another stock split, potentially driving further outperformance.
Key Takeaways
- Melius Research upgraded AMD stock to 'buy', projecting a 36.5% increase with a price target of $175, citing GPU growth.
- David Tepper's Appaloosa fund significantly reduced its Nvidia stake and sold all AMD shares, investing in Broadcom instead.
- Nvidia, TSMC, and Broadcom are identified as top AI stock investments due to their key roles in AI infrastructure.
- Wells Fargo analysts believe geopolitical uncertainty is boosting AI investments due to the need for competitive advantages.
- Eurazeo invested $20 million in aedifion, an AI platform for property energy management.
- Spotify CEO Daniel Ek invested $694 million in Helsing, an AI startup focused on military applications.
- Apple is reportedly considering acquiring Perplexity AI to improve its AI capabilities.
- Morningstar identifies AI as a key investment theme, with significant growth in AI and Big Data funds.
- Analysts recommend selling Palantir and C3.ai stocks due to valuation and profitability concerns.
- Nvidia may split its stock again due to its strong performance in the AI infrastructure market.
AMD stock may jump 35% says Melius after AI upgrade
Melius Research upgraded Advanced Micro Devices (AMD) stock to buy, predicting a 36.5% surge. Analyst Ben Reitzes raised the price target to $175, citing growth in graphics processing units (GPUs) for 2026-2028. Investors are gaining confidence in GPU momentum due to growth in inferencing and interest from hyperscalers. Reitzes notes the stock is volatile, but could be in the middle of a historic run.
AMD stock gets a buy rating as AI efforts grow
Melius Research upgraded Advanced Micro Devices (AMD) stock to buy with a price target of $175. Analyst Ben Reitzes noted AMD's progress in AI chips and computing systems. AMD has made advances in AI accelerators and computing systems. AMD is expected to benefit from investments in AI inferencing by cloud computing companies. AMD highlighted its AI data center systems' advantages over Nvidia on June 12.
David Tepper shifts AI investments from Nvidia, AMD to Broadcom
Billionaire David Tepper's Appaloosa fund sold 97% of its Nvidia stake and all of its AMD shares. Tepper opened a new position in Broadcom, now worth over a trillion dollars. Tepper may have been locking in gains from Nvidia and AMD. Export restrictions to China and increasing competition may be concerns. Broadcom's Jericho3-AI fabric connects GPUs, maximizing computing and minimizing latency.
Top AI stocks to buy now Nvidia, Taiwan Semiconductor, Broadcom
Nvidia, Taiwan Semiconductor Manufacturing (TSMC), and Broadcom are strong AI stock investments. Nvidia's GPUs power most AI technology and continue to innovate. TSMC manufactures chips for nearly every AI device. Broadcom's switches help GPUs work together, and they develop custom AI accelerators called XPUs. All three companies are projecting massive growth in the next few years.
Wells Fargo says AI trade benefits from geopolitical uncertainty
Wells Fargo analysts suggest that geopolitical uncertainty creates an attractive environment for AI-related trades. AI can boost productivity and innovation across industries, leading to long-term growth. Tensions like the Ukraine war and US-China relations could speed up AI adoption. This is because countries want a competitive edge in defense and cybersecurity. Investing in AI carries risks like high valuations and ethical concerns.
Eurazeo invests $20M in aedifion's AI energy platform
Eurazeo led a $20 million investment round in aedifion, a German AI tech company focused on property energy management. Aedifion's AI platform helps property firms cut energy costs and CO2 emissions. The platform monitors and manages heating, ventilation, and air conditioning systems. Other investors include World Fund, Drees & Sommer, and BitStone Capital. Aedifion's CEO says AI will play a key role in the energy transition.
Spotify CEO invests $694M in AI war tech firm Helsing
Spotify CEO Daniel Ek's investment firm, Prima Materia, led a $694 million funding round for Helsing, a European AI startup. Helsing uses AI to support military decisions by connecting sensor and weapons data. The funding will help Helsing scale production of AI-driven defense systems. Helsing operates in Germany, France, and the U.K. and has government contracts.
Apple may buy AI startup Perplexity to boost stock Bank of America
Bank of America says Apple may acquire Perplexity AI, which could boost Apple's stock. Analyst Wamsi Mohan says Apple is seen as an AI laggard. Perplexity AI could improve Apple's voice assistant and hedge against relying on Google for search. Apple executives have reportedly discussed buying the AI startup. Apple's stock has struggled recently, but AI developments could help.
AI is key investment theme says Morningstar
Artificial intelligence (AI) is reshaping global investment trends. AI and Big Data funds have seen growth and investor interest. Global assets in these funds totaled over $30 billion in the first quarter. AI is used in voice assistants, financial forecasting, and healthcare. The Magnificent Seven companies dominate AI fund holdings, especially Nvidia.
Will Nvidia split its stock again after AI boom
Nvidia's stock is near its record high due to its AI infrastructure market lead. Nvidia is adding platforms and products for the AI ecosystem. Nvidia may split its stock again, which has historically led to outperformance. Nvidia's data center sales have increased significantly. Nvidia is working with companies and countries to expand AI infrastructure.
Analysts say sell these AI stocks Palantir, C3.ai
Analysts suggest selling Palantir and C3.ai stocks. Palantir benefits from AI demand, but its valuation is a concern. One analyst predicts Palantir's stock could fall 57%. C3.ai's unprofitability could lead to underperformance. One analyst gives C3.ai an underweight rating, expecting an 8% decline.
Sources
- Melius upgrades this AI play, says shares can surge more than 35%
- AMD Stock Gets New Buy Rating As AI Efforts Take Hold
- Billionaire David Tepper Sold 97% of Appaloosa's Nvidia Stake and His Entire Position in AMD in Favor of This Trillion-Dollar Artificial Intelligence (AI) Stock @themotleyfool #stocks $AVGO $NVDA $AMD
- 3 Phenomenal AI Stocks That Investors Should Load Up On
- Geopolitical uncertainty creates attractive environment for AI trade - Wells Fargo By Investing.com
- Eurazeo leads $20m round in aedifion to scale AI-powered energy platform
- Spotify's $694M Bet On AI War Tech: What Daniel Ek's Helsing Move Signals For Investors Watching The Defense Boom
- A rumored AI acquisition would get Apple stock out of 'penalty box,' says Bank of America
- Artificial Intelligence: The Defining Investment Theme of Our Era
- Stock-Split Watch: Is Nvidia Next?
- 2 Top AI Stocks to Sell Before They Fall 57% and 8%, According to These Wall Street Analysts