Western Digital (WDC) has seen a shift from caution to a buy rating due to its strong performance in the AI-driven storage market, with analysts admitting they were “far too early” in their previous downgrade. ServiceNow (NOW) received an upgrade as its recent underperformance created an attractive entry point for investors. On the downgrade side, Nvidia (NVDA) faces caution ahead of earnings amid growing AI bubble concerns, while Alphabet (GOOGL) moves to a hold rating despite Berkshire Hathaway’s new $4.9 billion stake in the company.
Upgrades
-
Western Digital (WDC): Upgrade Sell to Buy by Tech Stock Pros. Analysts have reversed their previous downgrade as demand for large-cap storage solutions continues to outpace supply, driven by AI data storage requirements.
“We believe this is an attractive stock into 2026. As long as supply remains under control, we’re expecting WDC to continue to outperform the market. Hence, we’re biting the bullet on our earlier mistake and upgrading the stock back to a buy.”
-
ServiceNow (NOW): Upgrade to Buy by Julian Lin. The recent underperformance has created a buying opportunity for this high-quality software leader, reinforcing its premium status in the sector.
“The company’s business model is uniquely entrenched in its customers, making it among the highest quality names in the software space… Assuming the company meets consensus estimates (which again look conservative), the stock looks priced for around 13% potential annual returns over the next 8 years. That return looks sufficient to beat the typically expected 8% returns from the broader market.”
Downgrades
-
Nvidia (NVDA): Downgrade to Hold by The Techie. The analyst cites unfavorable risk-reward ahead of Q3 earnings as market sentiment grows cautious amid AI bubble concerns and major funds de-risking.
“I’m not bearish on Nvidia, but I’m not recommending buying at current levels either, and would advise investors to stay on the sidelines with this one before earnings. I think Nvidia is still executing at an exceptional level, but the way I see it, the market is already treating that execution as a given, and significant upside looks capped from where I’m standing.”
-
Alphabet (GOOGL): Downgrade to Hold by Brett Ashcroft Green. While fundamentally strong with robust growth prospects, the stock’s recent price appreciation has priced in much of the next 12 months’ growth.
“My downgrade thesis here is that all the growth in the price has now been pulled forward for 1-2 years. The risk is that this thing can still outperform analysts’ expectations, and we are underestimating Google’s growth potential because they have so many cutting-edge businesses.”