Latest news with #AtifMalik
Yahoo
3 days ago
- Business
- Yahoo
Nvidia Holds Citi Buy Rating, $190 Target Despite Insider Selling
Citi kept its Buy recommendation for Nvidia (NVDA, Financials) on Wednesday, with analyst Atif Malik setting a price objective of $190. The stock started at $171.19, which means it might go up roughly 11%. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Citi's projection comes out when Nvidia's price-to-earnings ratio is 53.1 and everyone on Wall Street is positive. Even while analysts are hopeful, corporate insiders are not. Last month, Director Mark A. Stevens sold 608,248 shares of Nvidia stock for more than $88 million. Investors may have to reconcile the sustained demand for AI chips against the prudence shown by executives selling their shares, especially because Nvidia is flirting with all-time highs as its value rises. This article first appeared on GuruFocus. 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
4 days ago
- Business
- Yahoo
Citi Puts Arista (ANET) Stock on Catalyst Watch Ahead of Earnings
Arista Networks Inc (NYSE:) is one of the . On July 14, Citi analyst Atif Malik reiterated a Buy rating on the stock with a $123.00 price target. The firm is optimistic that Arista shares will outperform over the next three months due to possible upward revisions to its second-half and full-year outlook once it reports June-quarter results on Aug. 5. 'We are opening a positive catalyst watch on Arista as we believe shares will outperform with positive revisions to the company's 2H outlook. Arista is expected to provide Sep-Q guidance and an updated FY25 outlook… we anticipate an increase to the company's outlook for 17% topline growth Y/Y to drive upward revisions to 2H consensus for 15% topline growth Y/Y.' Based on the company's strength in the front end and improving trends in data center switching, the firm has raised its full-year 2025 revenue forecast for the company to $8.6 billion. 'We remain constructive on hyperscale data center capex and see upside to 2H/FY25 as ANET benefits from an expanding Ethernet switching TAM.' The firm's revenue projections for the June quarter are in line with guidance and consensus, with analysts noting that 'management guided to a specific point for sales instead of the typical range, to reflect their confidence.' 'As we shift from defense (1H) to offense (2H), ANET is our top-ranked stock.' Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions. While we acknowledge the potential of ANET 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.
The Star
4 days ago
- Business
- The Star
Apple faces calls to reboot AI strategy with shares slumping
Apple Inc. is facing pressure to shake up its corporate playbook to invigorate its struggling artificial intelligence efforts. Alarmed by a share slump that's erased more than US$630bil (RM2.3 trillion) in market value this year and frustrated with delays in rolling out AI features, investors are calling for Apple to break with long-standing traditions to make a big acquisition and more aggressively pursue talent. "Historically Apple does not do big mergers and acquisitions,' said Citigroup Inc. analyst Atif Malik, noting that the last major deal was its takeover of Beats in 2014. But, he argues, "investors would turn more positive if Apple could acquire or invest a meaningful stake in an established AI provider.' Apple shares have fallen 16% this year while traders bid up the shares of peers like Meta Platforms Inc., which is spending lavishly on AI. While Apple faces other problems, including its exposure to tariffs and regulatory issues, disappointment in bringing compelling AI features to its vast ecosystem of devices has become top of mind for investors. Apple didn't respond to a request for comment. The company has long shunned acquisitions in favour of building its own products. The largest acquisition in Apple's history was a US$3bil (RM12.7bil) deal for headphone maker Beats more than a decade ago. There are signs that Apple may be warming up to such a move. Bloomberg News reported last month that executives have held internal talks about making an offer for AI startup Perplexity AI, which would add talent and help Apple develop an AI-based search engine. The startup recently completed an investment round that valued it at US$14bil (RM59.4bil). Dan Ives, an analyst at Wedbush who is a long-time Apple bull, called buying Perplexity a "no-brainer,' and said even if Apple paid US$30bil (RM127.4bil), that sum would be "a drop in the bucket relative to the monetisation opportunity Apple can achieve on AI.' Since unveiling its AI vision more than a year ago, Apple's rollouts of new features have underwhelmed, such as those unveiled at its Worldwide Developers Conference last month. The company has reportedly considered using AI tech from outside companies, rather than in-house models, to power a new version of its Siri digital assistant. Kevin Cook, a senior stock strategist at Zacks Investment Research, wants Apple to be more like Meta when it comes to hiring AI experts but stops short of calling for more dramatic changes, saying that concerns about its AI shortfalls are overblown. "A refocus on AI talent is what's needed,' said Cook. "Apple certainly has challenges, but this isn't like Google, which could more easily have been usurped by competitors if it fell behind,' he said. Meta Chief Executive Officer Mark Zuckerberg has spared no expense in pursuing his AI ambitions. The Facebook owner recently lured an engineer that ran Apple's AI models team with a pay package in the hundreds of millions of dollars over a several year period and Apple didn't try to match the offer, Bloomberg News reported last week. That followed Meta's deal to invest US$14.3bil (RM60.7bil) in Scale AI last month. Of course, Apple has plenty of resources at its disposal to make similar moves. The company had cash and marketable securities of US$133bil (RM564.7bil) at the end of March, nearly twice the cash on Meta's balance sheet. There have been some notable changes at Apple recently. Chief Operating Officer Jeff Williams is retiring after a decade in that role. And Luca Maestri, Apple's longtime chief financial officer, stepped down last year. Over the weekend, Bloomberg News reported that chief executive officer Tim Cook will stay put, though the company is preparing for a broad management shake-up. Analysts at LightShed Partners say a shake-up is "exactly what Apple needs right now,' even if that means Cook is replaced as CEO. "Missing on AI could fundamentally alter the company's long-term trajectory and ability to grow at all,' Walter Piecyk and Joe Galone wrote in a note to clients on July 9. While not calling for a change in leadership at the top, Paul Meeks, senior analyst and managing director at Water Tower Research, agrees that the iPhone maker needs to do "something bold.' "A significant deal would not only help them in AI, but show it is committed to a culture change and course correction. It can't do AI on its own,' he said. Bloomberg's Magnificent 7 index has rallied nearly 40% from an April low. lifted by performances from some of its components like Nvidia Corp., Meta Platforms Inc. and Microsoft Corp. The equal-weighted gauge of the stocks, which also includes Apple Inc., Alphabet Inc., Inc. and Tesla Inc., is inching toward an all-time high set in December last year. – Bloomberg
Yahoo
4 days ago
- Business
- Yahoo
Apple (AAPL) $240 PT, Buy — Citi Sees Tariff Boost Now, AI Risks Later
Apple Inc. (NASDAQ:) is a On July 11, Citi analyst Atif Malik reiterated the stock as 'Buy' with a $240.00 price target. The firm said it sees some uncertainty for Apple but that it's sticking with its buy rating. Adjusting its iPhone unit sales forecast, the investment bank now anticipates 45 million units in the June quarter, up from its previous estimate of 43 million. Moreover, it expects 50 million units in the September quarter, down from the previous 52 million. A wide view of an Apple store, showing the range of products the company offers. The firm attributes June quarter upside largely to tariff pauses and huge discounts in China. However, it remains cautious on full-year iPhone demand based on AI feature delays and Section 232 decisions. 'While we acknowledge upside from the pulled forward demand in the Jun-Q driven by tariffs pause and aggressive promotions in China, we remain cautious on the full year iPhone demand given AI delay and pending Section 232 decisions.' While we acknowledge the potential of AAPL 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.
Yahoo
4 days ago
- Business
- Yahoo
Arista Networks (ANET) Gets a Positive Catalyst Watch—Citi Raises PT to $123
Arista Networks Inc. (NYSE:ANET) is a Must-Watch AI Stock on Wall Street. On July 11, Citigroup analyst Atif Malik maintained a 'Buy' rating on the stock and raised the price target from $112.00 to $123.00. The firm added a positive catalyst watch on Arista Networks, stating that the stock has more room to run. It believes that Arista Networks will outperform as the company's second-half outlook receives positive revisions. Arista is anticipated to provide September quarter guidance along with an updated fiscal year 2025 outlook with its June quarter results. The firm expects the company to raise its forecast to 17% yearly sales growth. This could drive upward revisions to current consensus estimates of 15% revenue growth for the second half of the year. A cheerful investor telling their financial advisor they are ready to invest in alternative assets. Two factors highlighted by the firm behind Arista Networks' growth are robust hyperscale data center capital expenditure spending and a booming data center switch market. 'We are opening a positive catalyst watch on Arista as we believe shares will outperform with positive revisions to the company's 2H outlook.' Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions. While we acknowledge the potential of ANET 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
