Wall Street Boosts AI Stocks: AMD, Nvidia, Oracle Upgraded

Morgan Stanley reiterated its Overweight rating on Nvidia (NASDAQ: NVDA), emphasizing continued positivity on both short- and long-term prospects for the semiconductor giant. According to the firm’s analysis quoted by CNBC, “We remain positive on the short- and long-term outlook here, and while the market is more optimistic now vs. 3-6 months ago, we still see the stock climbing a wall of worry from here.” This endorsement comes alongside Cantor Fitzgerald’s recent $60 price target increase to $300 per share, maintaining an overweight rating.

The consistent bullish sentiment surrounding Nvidia stems from the firm belief among analysts that artificial intelligence adoption remains in its early stages. Cantor Fitzgerald specifically highlighted that AI technology “is still in the early innings and could be a substantial driver of Nvidia’s growth moving forward,” suggesting significant runway remains for the company’s AI-driven revenue streams despite its substantial market capitalization gains throughout 2024.

TD Cowen raised its price target on AMD (NASDAQ: AMD) to $270 from $195 following what the firm described as “a substantial move on its OpenAI deal” that sent shares up 64% in a single week. The firm maintained its Buy rating while noting that with AMD’s November analyst day approaching, “the beat/raise we expect is unlikely to be a major catalyst” given the recent stock appreciation. This assessment suggests that much of the near-term optimism may already be priced into AMD’s current valuation.

Piper Sandler joined the bullish chorus, raising its price target on AMD to $240 with an overweight rating. The firm provided additional context about the OpenAI partnership structure, noting that “in exchange, OpenAI will receive 160M warrants for AMD stock as specific milestones are achieved over the next five years.” This warrant structure creates a performance-based alignment between the two companies, ensuring OpenAI has ongoing incentive to utilize AMD’s technology while providing AMD with a prestigious AI partner that could drive broader adoption of its AI accelerators.

Citi raised its price target on Oracle (NYSE: ORCL) to $415 from $395 per share while maintaining a Buy rating. The firm addressed recent investor concerns, noting that “after a historic Q1, ORCL shares have traded off 10%+ from recent highs on concerns around quality of backlog, profitability concerns following a slew of press reports and broader AI bubble/circularity concerns.” This analysis suggests that the recent price weakness represents a potential entry point rather than fundamental deterioration.

Additional Wall Street support emerged from Baird, which initiated coverage of Oracle with an Outperform rating and $365 price target, citing ORCL’s “strong position in the AI story.” Mizuho Securities reinforced this perspective, reiterating an Outperform rating with a $350 price target and explicitly stating that the stock’s decline from approximately $345 to a low of $270.53 “is a buying opportunity.” The collective analyst view positions Oracle’s recent weakness as temporary amid strong AI-related fundamentals.

Macquarie upgraded Baidu (NASDAQ: BIDU) to an Outperform rating, citing “hidden value” in the internet services company. According to the firm’s analysis, “We see Baidu pivoting towards more diversified revenue streams, with positive option value arising from both AI cloud and robotaxis.” This assessment highlights Baidu’s strategic transition beyond its core search business toward emerging AI-driven opportunities that could drive future growth.

The upgrade comes as Baidu experiences some profit-taking after rallying from approximately $85 to $150 per share. Macquarie’s recommendation suggests that once the stock “starts to show signs of bottoming out again, it’s a solid addition to AI investments.” This perspective positions Baidu as a compelling AI investment opportunity once the current technical consolidation completes, with the company’s AI cloud and autonomous vehicle initiatives providing substantial optionality beyond its current valuation.