Recent analyst actions have focused heavily on technological innovation and competitive positioning, particularly in AI development and data center growth. Analysts from Khaveen Investments and Income Generator have upgraded Marvell Technology and Microsoft, highlighting robust growth forecasts and strong profit margins driven by strategic partnerships and market leadership.
Meanwhile, Steven Fiorillo has downgraded Apple for the first time in seven years due to concerns about underinvestment in AI, while MMMT Wealth has downgraded NIO despite delivery growth, citing profitability challenges in the competitive EV market.
Upgrades
- Marvell Technology, Inc. (NASDAQ:MRVL): Upgrade to Buy from Khaveen Investments. The upgrade reflects strong future growth potential in Marvell’s Data Center segment, driven by custom AI ASICs and interconnects, with solid partnerships at AWS and Microsoft. “We remain positive on Marvell’s Data Center segment growth following its presentation day and higher TAM growth targets. We believe data center segment growth to be driven primarily by custom ASIC growth, where we expect a ramp from Microsoft and AWS, the top two largest cloud providers, to provide a big revenue opportunity and growth in the custom ASIC market… In total, we see the Data Center segment growing strongly and believe management’s growth targets may be achievable.”
- Microsoft Corporation (NASDAQ:MSFT): Upgrade to Buy from Income Generator. The upgrade stems from Microsoft’s recent pullback presenting an attractive buying opportunity as tariff headwinds subside and market stability returns. “With gross margins of nearly 69% and operating margins greater than 45%, Microsoft is still posting some of the strongest profitability numbers in the entire technology complex. Ultimately, this is important because elevated margins provide a buffer against broader economic downturns and create what I like to refer to as ‘downside shock insurance.’ Microsoft’s Q4 numbers make it clear that the firm is absorbing artificial intelligence infrastructure costs in a way that should continue to avoid a collapse in profitability.”
Downgrades
- Apple Inc. (NASDAQ:AAPL): Downgrade to Neutral from Very Bullish by Steven Fiorillo. Despite strong Q3 results and positive antitrust ruling impact, the downgrade reflects concerns about Apple’s underinvestment in AI and cloud services compared to competitors. “I am downgrading my investment thesis to neutral from very bullish because I believe that AAPL’s underinvestment in artificial intelligence and cloud services is going to be extremely negative for them in the future. Microsoft, Alphabet, Meta Platforms, and Amazon have taken a blank check approach toward the AI movement, while AAPL seems to have been sitting on the sidelines… I think there is less of a reason to be bullish on AAPL until we see a real roadmap for their future because their competitors aren’t afraid to spend and compete.”
- NIO Inc. (NYSE:NIO): Downgrade to Sell from MMMT Wealth. The downgrade comes despite impressive delivery numbers, citing structural risks including intense price wars, complex operations, and scale disadvantages compared to competitors. “There are areas to like for NIO and I think they are starting to successfully pivot the business into the right direction, but there’s also a lot of risk for them, mainly because I see it being very difficult for them to become a profitable company soon. The multiple they are trading at relative to LI and XPEV does not align with this view at all, though, which makes it very difficult for me to rate NIO as a ‘Buy.’”