Latest news with #BradleySills
Business Insider
12 hours ago
- Business
- Business Insider
CRWV vs. PLTR vs. NVDA: Which Is the Best AI Stock to Buy Now, According to Analysts?
The stock market remains volatile due to geopolitical tensions and macro uncertainty, raising concerns about a potential slowdown in AI (artificial intelligence) spending. Nonetheless, Wall Street remains confident about several AI stocks, given the massive growth opportunity in the generative AI space over the long term. Using TipRanks' Stock Comparison Tool, we placed CoreWeave (CRWV), Palantir Technologies (PLTR), and Nvidia (NVDA) against each other to find the best AI stock, according to Wall Street analysts. Confident Investing Starts Here: CoreWeave (NASDAQ:CRWV) Stock CoreWeave, a cloud provider that specializes in AI infrastructure, is experiencing strong traction for its offerings amid the ongoing AI boom. The company has been in the news for its strategic deals. Notably, CoreWeave struck a $11.9 billion 5-year cloud computing contract with ChatGPT-maker OpenAI. The two AI companies also signed an expanded agreement of up to $4 billion to meet the growing demand for high-performance computing. Furthermore, CoreWeave is reportedly powering the recently announced cloud deal between Alphabet's Google (GOOGL) and OpenAI. CRWV stock has rallied by a staggering 359% from its IPO (initial public offering) price of $40. Is CRWV a Good Stock to Buy? Recently, Bank of America analyst Bradley Sills downgraded CoreWeave stock to Hold from Buy on valuation concerns, following the stellar rally in the AI infrastructure stock in reaction to the Q1 earnings. The 4-star analyst highlighted that CRWV stock is trading at an elevated valuation of 2027 EV/EBIT (enterprise value-to-earnings before interest and taxes) of 25x. While Sills noted several positives, like the expansion of CoreWeave's partnership with OpenAI and impressive revenue momentum, he pointed out the company's huge capital expenditure ($46.1 billion through 2027). Consequently, the analyst expects $21 billion of negative free cash flow through 2027. Turning to Wall Street, CoreWeave stock scores a Moderate Buy consensus rating based on six Buys, 11 Holds, and one Sell recommendation. The average CRWV stock price target of $78.53 indicates a significant downside risk of 57.2% from current levels. Palantir Technologies (NASDAQ:PLTR) Stock Data analytics company Palantir Technologies is considered one of the hottest AI stocks. PLTR stock has rallied more than 81% so far in 2025. The company's revenue is growing at a rapid pace across its Government and Commercial businesses. Palantir's AIP (Artificial Intelligence Platform) offering is bolstering its business. Palantir's market-beating first-quarter results reinforced the strength of its AI-powered offerings. Notably, Q1 2025 revenue increased by 39% year-over-year to $884 million, while adjusted EPS (earnings per share) jumped 62%. Additionally, the company raised its full-year guidance, as it believes that it is in the 'middle of a tectonic shift' in the adoption of its software, mainly in the U.S. Is Palantir Stock a Buy? While several analysts are cautious on Palantir stock due to its lofty valuation, Loop Capital analyst Mark Schappel reiterated a Buy rating and boosted the price target from $130 to a Street-high of $150. Following a meeting with management, the 5-star analyst stated that he is more convinced about PLTR's AI growth story and his bullish investment thesis. Schappel believes that Palantir is an early software leader in enterprise AI, which he thinks is at a 'tipping point,' as small-scale pilots move into production and AI use cases increase exponentially across all industries. Trading at 48x EV/2027 revenue, the analyst agrees that PLTR stock is 'not for the faint of heart.' That said, he contends that investors should look at the big picture, which indicates that Palantir is exposed to a massive AI opportunity. With 10 Holds, three Buys, and four Sells, Wall Street has a Hold consensus rating on Palantir Technologies stock. The average PLTR stock price forecast of $104.27 indicates a possible downside of 24.1% from current levels. Nvidia (NASDAQ:NVDA) Stock After a tough start to the year due to concerns about rising competition in the AI space, chip export restrictions, and tariff woes, Nvidia stock has recovered 21% over the past three months and is up 7.1% year-to-date. While uncertainty around chip exports and competition from custom AI chips remain an overhang, the semiconductor giant continues to gain from robust demand for its GPUs (graphics processing units) in the AI space, as reflected in the market-beating first-quarter results. Looking ahead, the demand for NVDA's Blackwell platform is expected to boost its top-line growth. Moreover, the company's focus on 'sovereign AI,' which it defines as a country's ability to develop and deploy AI, could drive its revenue higher. In this regard, Nvidia's lucrative deals, like the recently announced agreement with Saudi Arabia and Germany, are worth noting. Is Nvidia Stock a Buy, Hold, or Sell? Earlier this month, Bank of America Securities analyst Vivek Arya reiterated a Buy rating on Nvidia stock with a price target of $180. Following a meeting with management, the 5-star analyst noted that the tone of the team was very positive regarding demand for Nvidia's products and continued customer interest across cloud and enterprise, backed by a full-scale supply ramp. Arya believes that management addressed three key investor debates that have been weighing on NVDA stock over the past year – Blackwell rack ramp and execution, AI diffusion and sovereign demand, and China AI shipments. The analyst stated that Nvidia stock remains a top sector pick for Bank of America, as it is 'best positioned' to benefit from the ongoing AI boom, bolstered by a multi-year lead in 'performance (AI scaling), pipeline, incumbency, scale, and developer support.' Despite near-term challenges, Wall Street has a Strong Buy consensus rating on Nvidia stock based on 35 Buys, four Holds, and one Sell recommendation. The average NVDA stock price target of $173.19 indicates 20.4% upside potential from current levels. Conclusion Wall Street is highly bullish on Nvidia stock, cautiously optimistic on CoreWeave, and sidelined on Palantir stock. Currently, analysts forecast further upside in chip giant Nvidia's stock while they see possible downside risk in the other two AI stocks. The optimism of most analysts on Nvidia stock is backed by its strong fundamentals, robust demand for its AI chips, continued innovation, and solid execution.
Yahoo
a day ago
- Business
- Yahoo
CoreWeave (CRWV) Downgraded to Hold by BofA Despite AI Momentum
CoreWeave, Inc. (NASDAQ:) is one of the 10 AI Stocks Getting Wall Street's Attention. On June 16, Bank of America analyst Bradley Sills downgraded the stock to 'Hold' from Buy on valuation concerns, adjusting its price target upwards from $76 to $185. Sills noted that the stock has rallied 145% since its first-quarter earnings, trading at a premium valuation of 2027 EV/EBIT of 25x. The analyst stated that 'much of the near-term upside has been priced in,' and that the stock's valuation is at a premium to peers. The firm is optimistic about CoreWeave's offerings amid the ongoing AI boom. Certain developments have also proven favourable for the stock, including a new hyperscaler customer, expansion of the OpenAI agreement worth $4 billion, remarkable top-line momentum, and a lower cost of capital for recently raised debt. Coreweave's (CRWV) Ascent Implies That with Great Data Comes Great Responsibility Sills continues to see 'solid sustained demand in CoreWeave's AI infrastructure market.' Even though the growth rate for capital expenditures related to artificial intelligence is surging, it remains 'very healthy.' AI infrastructure spending is estimated to reach $206 billion in 2027, a deceleration from the 65% jump observed in 2025. These estimates could move higher on a larger base. With OpenAI's ChatGPT being the single largest consumer of AI workloads, Sills anticipates CoreWeave's AI infrastructure market to witness continued growth. However, elevated capital expenditure is likely to result in an estimated $21 billion of negative free cash flow through 2027. The company may have raised capital at a lower cost, but it represents only a small proportion of the overall incremental debt needed to support growth. This is why Sills is concerned about the cost of debt, as the company has funded 85% of its capex with debt in the past. While we acknowledge the potential of CRWV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
BofA Reiterates Buy on Salesforce (CRM) Amid Informatica Talks
On May 23, Bank of America Securities analyst Bradley Sills reiterated his Buy rating on Salesforce Inc. (NYSE:CRM) stock and raised his price target from $350 to $360, following a Bloomberg report that the company may acquire software company Informatica Inc. (NYSE:INFA). Informatica provides AI-powered enterprise cloud data management services. Sills highlighted that Informatica has a strong roster of large clients and solid data integration and governance expertise. He thus believes that the deal would strengthen Salesforce's data management offerings. Copyright: drserg / 123RF Stock Photo Sills also pointed out that Informatica's transition towards cloud-based services would gradually improve the combined company's revenue growth rate. The deal is not expected to dilute the cash flow profile as Informatica reports a comparable unlevered free cash flow margin (around 35%). Given these factors, the analyst views the potential acquisition as a positive for Salesforce's long-term earnings growth and thus maintains his optimistic view. Salesforce previously attempted to acquire Informatica in April 2024, but the deal didn't go through. Interestingly, Informatica was valued at approximately $12 billion at that time. Despite an 18% rally on Friday, May 23, the stock is now valued at just over half of that 2024 level. Private equity firm Permira and Canada Pension Plan Investment Board are Informatica's largest shareholders, holding stakes of 32% and 25%, respectively. Bloomberg also reports that Cloud Software Group, earlier known as Citrix Systems Inc., is also in the fray. If the deal is agreed on, it could be announced as soon as this week. Salesforce Inc. (NYSE:CRM) is a global leader in customer relationship management (CRM) software. Its cloud-based platform provides solutions for sales, service, marketing, and commerce, enabling businesses to build stronger customer connections using the power of data and AI. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
19-03-2025
- Business
- Globe and Mail
Analysts Are Split on Salesforce Stock (CRM)
According to Bank of America analyst Bradley Sills, it's time for investors to buy Salesforce (CRM) stock. The analyst highlights CRM shares as having the potential for 'quality growth at a reasonable price.' He reiterated a Buy rating and a $400 price target, representing a potential 43.51% upside for CRM stock. Light Up your Portfolio with Spark: Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. Sills points to Salesforce's Agentforce artificial intelligence (AI) platform as the reason for the bullish stance on the stock. He says this could see 2% incremental growth in the second half of 2025 based on Salesforce Data Cloud. The analyst also notes that Salesforce intends to introduce a new pricing model for Agentforce. This will prevent additional pressure on margins by charging tokens based on problem complexity. Sills isn't the only analyst to weigh in on CRM stock recently. Five-star Stephens analyst Brett Huff initiated coverage of the company yesterday with a Hold rating and a $311 price target, representing a potential 11.58% upside for the shares. While Huff admits Salesforce is right to bet on AI, he points to its reliance on legacy technology as an issue that will affect its growth. The analyst also argues that the company's AI efforts are already baked into its share price. CRM Stock Movement Today CRM stock is up 0.79% on Wednesday after falling 0.72% yesterday. The stock is also down 16.63% year-to-date and 8.55% over the last year. The stock went through a rough period earlier this year when the AI sector was rocked by the DeepSeek reveal. While many companies have recovered since then, CRM isn't one of them. Is CRM Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Salesforce is Moderate Buy based on 30 Buy, eight Hold, and two Sell ratings over the last three months. With that comes an average price target of $375.58, a high of $440, and a low of $243. This represents a potential 34.75% upside for CRM stock. See more CRM stock analyst ratings Questions or Comments about the article? Write to editor@
