Investing.com — Here are the biggest analyst moves in the field of artificial intelligence (AI) for this week.

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2025 could be peak for Nvidia stock: DA Davidson

In a Thursday note, DA Davidson analysts suggested that 2025 could be the peak year for Nvidia (NASDAQ: ) stock, maintaining a cautious view of the company’s long-term outlook. .

Despite Nvidia’s strong performance last year, the company has raised questions about its ability to meet expectations in 2026, describing its forecast for that year as “low road.”

DA Davidson initiated coverage of Nvidia in January 2024 with a Neutral rating, flagging significant concerns that place the company among the most conservative voices on Nvidia’s future prospects. This cautious stance remains unchanged, with the company reiterating a Neutral rating and a $135 price target, indicating a 35x multiple.

“We remain cautious on NVDA’s ability to meet consensus expectations for CY2026 and beyond,” the company’s analysts stated, stressing that while 2025 may represent a high point, continuing to progress forward may prove challenging.

Among the company’s concerns are supply-side disruptions, including sales restrictions in China and quality issues with Nvidia’s Blackwell products. However, DA Davidson noted that these challenges may “actually lengthen the cycle,” as supply constraints may help sustain demand in the near term.

However, DA Davidson expects a potential slowdown in 2026.

“In the shorter term, we expect investors to focus on supply disruptions, namely sales limitations in China as well as Blackwell’s quality issues,” the company commented, adding that the “Long time driver will remain in demand.”

Morgan Stanley puts Tesla bull case at $800

Earlier in the week, Morgan Stanley (NYSE:) raised its price target for Tesla Inc (NASDAQ:) shares to $430 from $400, with a new bull case valuation of $800.

The Wall Street firm credits the upgrade to Tesla’s advances in autonomous vehicle (AV) technology and its integration with embodied AI, which it views as critical drivers of future growth.

The report highlights Tesla’s unique expertise in data collection, robotics, energy storage, and AI infrastructure, positioning the company as a market leader in autonomous mobility.

Tesla Mobility, the company’s autonomous rideshare division, is valued at $90 per share in an updated sum-of-the-parts (SOTP) model. The division’s fleet is expected to expand to 7.5 million vehicles by 2040, generating $1.46 per mile of revenue with a 29% EBITDA margin.

Morgan Stanley also highlighted the growing importance of Tesla’s Network Services, which includes recurring revenue streams such as Full Self-Driving (FSD), supercharging, and software updates.

This segment is expected to account for one third of Tesla’s total EBITDA in 2030, increasing to nearly 60% in 2040. The Network Services division is currently valued at $168 per share, reflecting an increase in its meaning within Tesla’s overall business model.

“We raised our price target to $430 from $400 previously, driven by increases in our Mobility and Network Services valuations and partially offset by a decline in our 3rd Party Battery business valuation,” the analysts wrote. led by Adam Jonas.

The bank said that Tesla’s potential in embodied AI extends beyond vehicles in areas such as aviation and marine, although these opportunities have not yet been included in the valuation. Analysts expect Tesla’s unsupervised autonomous vehicle fleet to launch in a city setting by 2026 but don’t expect widespread delivery until after 2030.

While the incoming administration may reevaluate self-driving policies on a national level, Tesla still faces “significant hurdles” in technology, testing, and permitting for the near future. commercialization, analysts added.

Morgan Stanley’s bull case assumes a fleet size of 12 million vehicles by 2040, generating $1.50 per mile of revenue with a 45% EBITDA margin, driven by international expansion and improved which is pricing power.

On the other hand, the bear case valuation of $200 per share reflects challenges such as stricter regulations and slower geographic adoption.

AMD is underwritten by Wolfe Research

Wolfe Research downgraded Advanced Micro Devices Inc (NASDAQ: ) stock to Peer Perform from Outperform, pointing to reduced expectations for the company’s data center GPU revenue in 2025.

Analysts now forecast $7 billion in revenue for the segment, a sharp drop from earlier estimates of more than $10 billion.

“We now expect $7bn in DC GPU revenue for CY25 compared to our prior expectation of $10bn+,” Wolfe Research wrote in a note. They also believe that AMD will refrain from offering guidance for this segment in its upcoming fourth quarter earnings call.

The downgrade follows visits to Asia, where ODM’s construction plans suggest only moderate growth for AMD.

“We estimate datacenter GPU revenue in the $1.5-2.0bn range for 4Q and $7bn for CY25,” Wolfe’s analysts added, stressing that these numbers were below purchasing expectations by roughly $10 billion.

The challenges extend to other parts of AMD’s business as well. Analysts see a 17% sequential decline in client share for Q1 2025 due to weak PC demand, a 20% decline in gaming revenue, and no immediate recovery of the embedded segment, which may improve later in the year.

As a result of these changes, Wolfe Research reduced its 2025 forecasts for AMD’s total revenue and earnings to $29.9 billion and $4.19 per share, from earlier estimates of $33.6 billion and $5.33 per share.

On a more positive note, Wolfe Research expressed some optimism for AMD’s upcoming MI350 series, which is scheduled to be released in the second half of 2025.

TD Cowen raises SAP stock to buy

TD Cowen upgraded shares of SAP SE ADR (NYSE: ) to Buy from Hold, raising its price target to $305 from $240.

The upgrade is backed by survey data that shows a significant increase in the priority of Cloud enterprise resource planning (ERP), with AI emerging as a key driver of ERP migration.

“The accelerating growth + margin expansion combo is poised to continue into ’27 and put additional upward pressure on valuations,” analysts led by Derrick Wood wrote in a note on Thursday.

TD Cowen’s 2025 Software (ETR:) The Spending Survey revealed that ERP rose to third place out of 11 categories of SaaS spending priorities, up four spots from its previous ranking. In addition, the quarterly surveys of SAP partners in Q4 show better performance and a stronger growth outlook for 2025, with expectations rising to +7%, compared to +2 % of the same period last year.

The company highlighted the strong demand for Cloud ERP, which showed strength in 2024 and is expected to accelerate in the next three years. This growth is driven by factors such as 2-3 times revenue conversion in cloud migrations, the 2027 end of life for SAP’s legacy ECC product, and higher attrition rates. -attach for adjacent products.

The company is also expected to benefit from reduced drag from IaaS and transactional products, along with an average selling price (ASP) increase from new AI and data offerings.

According to TD Cowen, SAP stands to use AI in two major ways: as a catalyst to accelerate migration to Cloud ERP and by monetizing GenAI features in its Premium SKU, which offers almost 30% price increase.

For its upcoming Q4 earnings report on January 28, TD Cowen expects SAP to achieve another five-year high in Cloud growth.

TD Cowen analysts model Cloud growth accelerating nearly 200 basis points to approximately 29% in constant currency (cc), above Street expectations of about 28% cc. In addition, the recent strength of the US dollar is expected to provide a tailwind, leading TD Cowen to raise its FY25 estimates.

The combination of accelerating growth and expanding margins is expected to continue to drive upward momentum in SAP’s valuation, analysts said.

Snowflake is Oppenheimer’s top pick for 2025

Oppenheimer analysts reaffirmed Snowflake Inc (NYSE:) as a top pick for 2025, citing strong expectations for the company’s performance and strategic growth initiatives. The company also raised its price target for the stock to $200 from $180.

The positive outlook is based on several key factors that position Snowflake for potential outperformance.

First, Oppenheimer pointed to a favorable setup for FY26, with an initial guidance in line with the consensus to yield a slight increase.

Analysts expect a “beat-and-raise cadence” throughout the year, driven by new product launches and increased AI workloads. Innovations such as Snowpark, Dynamic Tables, and Cortex are expected to drive higher consumption and accelerate revenue growth.

The investment bank also pointed to a change in its outlook on Iceberg. While concerns about lost storage revenue in FY25 initially clouded expectations, Oppenheimer now sees Iceberg as a growth driver for FY26. Analysts believe this will play a key role in boosting consumption and strengthening Snowflake’s revenue streams.

Cortex and AI momentum is another critical driver, according to the note. As the freedom of the cloud and large language model (LLM) gain traction, customers are increasingly encouraged to build applications on the Snowflake platform, leveraging its advanced capabilities to manage AI workloads.

Finally, Oppenheimer expects operating margin to expand as investment levels normalize after a period of increased spending in FY25, creating opportunities for improved profitability.

“Net, we see good support for improving consumption with room for upside from new products, expanding use of AI, and better margins,” the analysts concluded.