Questions about Nvidia speed; AMD was downgraded by Investing.com

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2025 could be the peak of Nvidia stock: DA Davidson

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

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

DA Davidson initiated coverage of Nvidia in January 2024 with a neutral rating, reflecting key concerns that have placed the firm among cautious voices about Nvidia’s future. This cautious stance remains unchanged, as the firm reiterates its neutral stance and price target of $135, which indicates a multiple of 35x.

“We remain cautious about NVDA’s ability to meet consensus expectations for CY2026 and beyond,” the firm’s analysts said, stressing that while 2025 may represent a high point, steady growth beyond that it can be a challenge.

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

However, DA Davidson expects a possible decline in 2026.

“In the short term, we expect investors to focus on supply-side constraints, namely sales limits in China as well as Blackwell’s quality issues,” the firm commented, adding that “a long-term driver will always be needed.”

Morgan Stanley puts Tesla’s bull case at $800

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

The Wall Street firm points to improvements in Tesla’s advances in autonomous vehicle (AV) technology and its integration of embedded AI, which are seen as key 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 leader in the autonomous mobility market.

Tesla Mobility, the company’s private rideshare division, is valued at $90 per share on the adjusted common stock (SOTP) model. The group’s fleet is expected to grow to 7.5 million vehicles by 2040, generating $1.46 per mile in revenue and 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 a third of Tesla’s total EBITDA by 2030, increasing to around 60% by 2040. The Network Services division is now valued at $168 per share, indicating its importance which is increasingly within Tesla’s overall business model.

“We are raising our price to $430 from $400 previously, driven by an increase in our Mobility and Network Services rates and partially offset by a decrease in the price of the 3rd Party Battery business, ” critics led by Adam Jonas wrote.

The bank notes that Tesla’s capabilities in embedded AI extend beyond cars to areas such as aviation and marine, although these possibilities have not yet been included in the budget. Analysts expect Tesla’s autonomous fleet to debut in urban areas by 2026 but don’t expect widespread deployment until after 2030.

While the incoming administration is likely to reevaluate state-level self-driving policies, Tesla still faces “significant hurdles” in technology, testing, and near-term commercialization, analysts added. .

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

On the other hand, a bear price of $200 per share indicates problems such as strict regulations and slow adoption of the space.

AMD is down from Wolfe Research

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

Analysts are now predicting $7 billion in revenue for the segment, which is a big drop from an earlier estimate of $10 billion.

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

The decline follows moves in Asia, where ODM’s construction projects have fueled AMD’s only modest growth.

“We estimate datacenter GPU revenue in the range of $1.5-2.0bn for 4Q and $7bn for CY25,” Wolfe analysts added, stressing that these numbers are below price-side expectations of around $10 billion.

The problems extend to other parts of AMD’s business as well. Analysts predict a 17% sequential decline in the consumer segment for Q1 2025 due to weak PC demand, a 20% decline in gaming revenue, and no immediate recovery in the installed segment, which could improving later in the year.

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

On a positive note, Wolfe Research expressed 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.

This development is supported by research data that shows a significant rise in the prioritization of Cloud enterprise resource planning (ERP), where AI is emerging as a key driver of ERP migration.

“The rapid expansion of growth + is set to continue through ’27 and put strong pressure on quality,” analysts led by Derrick Wood wrote in a note Thursday.

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

The firm highlights the strong demand for Cloud ERP, which has shown stability in 2024 and is expected to accelerate in the next three years. This growth is driven by factors such as a 2-3-fold increase in cloud migration, the end of SAP’s ECC product in 2027, and high product rates for nearby products.

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

According to TD Cowen, SAP stands to promote AI in two main ways: as a catalyst to accelerate the migration of Cloud ERP and by monetizing GenAI features in its Premium SKU, which provides promotion of the price of about 30%.

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

TD Cowen analysts model Cloud growth accelerating by 200 points to around 29% in constant currency (cc), above Street expectations of around 28% cc. Additionally, the recent strength of the US dollar is thought to provide a tailwind, leading TD Cowen to raise its FY25 forecasts.

The combination of accelerating growth and expanding parties is expected to continue to raise the pace of SAP’s valuation, analysts said.

Snowflake’s top pick at Oppenheimer for 2025

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

The positive outlook depends on several key factors that set Snowflake up for underperformance.

First, Oppenheimer points to a positive outlook for FY26, with forward guidance in line with consensus that could provide little change.

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

The investment bank also signaled a change in its outlook on Iceberg. While concerns about losing reserves in FY25 had initially clouded the outlook, Oppenheimer now sees Iceberg as a source of growth in FY26. Analysts believe it will play a key role in boosting consumption and boosting Snowflake’s earnings.

Momentum in Cortex and AI is another key driver, according to the note. As cloud independence and large-scale computing (LLM) continue to increase, customers are encouraged to build applications on the Snowflake platform, using its advanced capabilities to handle AI tasks.

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

“Net, we see a good support to improve the application with a space above the new products, to expand the use of AI, and a good network,” the analysts concluded.