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Riding the Wave: Analyst Insights Point to Promising Returns in 2024

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Big Blue on the Move: IBM (IBM)

Bank of America recently upped the ante, boosting its price target on IBM (NYSE:IBM) to $220 from $200, supporting its decision with a resounding โ€œbuyโ€ rating. With a 53% surge in the past year and an 18% boost year-to-date, IBM keeps gaining traction. Bank of America credits IBMโ€™s turnaround momentum and highlights its โ€œdefensive portfolio, attractive dividend yield, and undervalued AI capabilities.โ€ This move followed IBMโ€™s strong quarterly results, which were accompanied by news of job cuts in marketing and communications as they shift focus to AI applications. CEO Arvind Krishnaโ€™s commitment to upskilling employees on AI and replacing 8,000 jobs with AI in coming years showcases IBMโ€™s aspirations towards technological upgradation.

Powering Ahead: Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) has recently been the darling of analysts after its outstanding final quarter of 2023. Bank of America pushed up its price target on NVDA from $925 to $1,100 per share, signaling a lucrative 25% potential upside. Mizuho Financial Group (NYSE:MFG) also upped the ante, setting Nvidiaโ€™s price target to $1,000 from $850. Despite NVDAโ€™s staggering 240% rise in the last 12 months, including an 82% spike in the first 10 weeks of the current year, analysts remain unfazed. The chipmaker is poised to continue its exceptional performance, fueled by the soaring demand for its chips that fuel AI applications and models.

The Rising Star: Advanced Micro Devices (AMD)

Advanced Micro Devices Inc.: AI Chip Market Expansion

The Rise of Advanced Micro Devices Inc. in the AI Chip Market

An Analystโ€™s Affection

Recently, analysts have cast a fond eye on Advanced Micro Devices (NASDAQ: AMD). Positioned as the primary rival to Nvidia in the AI microchips industry, AMD witnessed a surge in its stock price target, soaring to $235 per share from $200 previously. Mizuho analysts, believers in the companyโ€™s potential, maintained a โ€œbuyโ€ rating. The expansion of AMDโ€™s stock price highlights the burgeoning AI chip market and foresees further amplification in AMDโ€™s multiple.

A Game-Changing Shenzhen Venture

Simultaneously, as Mizuho raised the bar for Advanced Micro Devices, the company unveiled an innovative AI chip customized explicitly for the Chinese market. This chip masterstroke aligns with the intricate web of U.S. trade restrictions. If the green light shines on AMD to distribute this AI microchip to China, it could potentially revolutionize the game, fortifying the companyโ€™s revenue stream and escalating its stock value. Noteworthy, AMDโ€™s shares have already surged by an impressive 40% in 2024.

On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole, a seasoned business journalist with two decades of experience in the field, brings a wealth of knowledge to the table. With a track record including reputable publications such as The Wall Street Journal, The Washington Post, and Toronto Star, Joel also contributed to financial juggernauts such as The Motley Fool and Investopedia.

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