Microsoft (MSFT) received a rare Wall Street downgrade on Monday over concerns the tech giant’s artificial intelligence lead is diminishing and that it has become too reliant on Nvidia (NVDA) for its AI infrastructure.
Analysts at D.A. Davidson downgraded the stock to Neutral from Buy, keeping their price target unchanged at $475, which still implies around an 8% upside from current levels.
The firm noted that Microsoft’s early investments and commercial product rollouts initially gave the company an advantage over Amazon (AMZN) and Google (GOOGL, GOOG), who it said were both “caught flat-footed.”
Views:
23