Morgan Stanley names its favorite stocks in tech — and gives one nearly 60% upside
CNBC Pro takes a look at three of the bank's top picks, including one in the semiconductor sector and a big internet name.
Tesla.and can generate answers that are seemingly convincing, but are actually wrong.".OpenAI launched a new AI model, GPT-4, Tuesday, adding to the surge in interest for artificial intelligence applications. Among other things, GPT-4 surpasses ChatGPT and places among high percentiles in test takers, the company said. Separately, investment firm Morgan Stanley MS announced it is “currently the only strategic client in wealth management receiving early access to OpenAI’s new products,” and “one of a handful of GPT-4 launch organizations.” Recently, Microsoft Corp. MSFT, a major investor in OpenAI, almost stole the show during Nvidia Corp. NVDA earnings with the popularity of OpenAI’s ChatGPT model, which...
OpenAI launched a new AI model, GPT-4, Tuesday, adding to the surge in interest for artificial intelligence applications. Among other things, GPT-4 surpasses ChatGPT and places among high percentiles in test takers, the company said. Separately, investment firm Morgan Stanley MS announced it is “currently the only strategic client in wealth management receiving early access to OpenAI’s new products,” and “one of a handful of GPT-4 launch organizations.” Recently, Microsoft Corp. MSFT , a major investor in OpenAI, almost stole the show during Nvidia Corp. NVDA earnings with the popularity of OpenAI’s ChatGPT model, which Open AI said is surpassed by GPT-4. Nvidia, a major supplier of graphic processing units used to run cloud servers and artificial intelligence models, said earlier in the month that AI will ultimately save companies more money..
Some Wall Street investors may be cautious on tech right now, especially after the collapse of Silicon Valley Bank. But others are seeing the volatility as an opportunity to snap up some tech stocks . After rallying to start the year, the Nasdaq Composite has lost more than 5% in the past month.
Morgan Stanley named its top picks in tech in a March 13 note. Here's what the bank's analysts, which include top strategists such as Mike Wilson, wrote about three of them.
Advanced Micro Devices Morgan Stanley said it has a longstanding preference for buying semiconductor stocks at a point in the cycle when "companies are undershipping end market demand and visibility is low." That means Advanced Micro Devices is a buy, according to the bank, which added that scenario "characterizes" half of the firm's business right now, with a recovery likely to come in the second half of 2023. "The other half of the company's business, its data center compute products, are set up for significant share gain in one of the best end-markets in semiconductors, helping the company stand out against peers even in the face of potential customer budget cuts," the bank's analysts wrote. Morgan Stanley gave AMD an overweight rating, and a price target of $87 — a level that the stock reached on March 14.
ServiceNow Cloud services company ServiceNow is one of the "best secularly positioned" names in software, according to Morgan Stanley, given that companies are prioritizing "digital transformation" in their IT spending. "The combination of durable topline growth and operating efficiency makes NOW our preferred top pick in the current environment," the bank said. It gave ServiceNow a price target of $612, or around 44% upside.
Amazon Morgan Stanley sees Amazon as the large-cap internet name in the best position, with "durable retail revenue growth and inflecting retail profitability." The bank said the company's business could reaccelerate in August, with margins set to improve. Amazon is currently trading at a 55% discount to the historical average, the analysts added. It gave Amazon a price target of $150, or nearly 60% upside. — CNBC's Michael Bloom contributed to this report...Morgan Stanley does suggest that Tesla's price cuts helped bring down prices for consumers. This is to say that not only did Tesla reduce its prices, but competitors did as well..
