Microsoft Upgraded: Best-Positioned Tech Stock Amid Slowing Consumer Demand
D.A. Davidson upgraded Microsoft (NASDAQ:MSFT) to Buy and raised its price target to $450 from $425, citing a more disciplined capital expenditure (capex) strategy and strong positioning among mega-cap tech firms.
- Microsoft has streamlined its capex approach, improving margins and return on invested capital.
- The company has guided for flat capex growth heading into FY26, signaling an end to the AI infrastructure spending war.
- Microsoft is also offloading AI infrastructure costs to partners like CoreWeave, Oracle (NYSE:ORCL), and SoftBank (TYO:9984).
- Analysts believe Microsoft is a defensive play with limited consumer exposure compared to other Mag6 stocks.
Market Data for Microsoft Investors
Tesla Faces 40% More Downside as Sales Decline
Wells Fargo reiterated its Underweight rating on Tesla (NASDAQ:TSLA) and cut its price target to $130 from $135, citing:
- Weak fundamentals, with sales down 16% YTD.
- European sales plunging 45% in January and 41% in February.
- Chinese sales down 14%, while U.S. sales fell 11% in January.
- Q1 2025 delivery estimates cut to 360,000 units, down 27% QoQ and 7% YoY.
- Analysts warn that price cuts are losing their impact, competition in China is intensifying, and the new Model “2.5” may cannibalize Model 3/Y sales.
Key Metrics for Tesla Investors
Intel Upgraded on New CEO Appointment
Bank of America (BofA) upgraded Intel (NASDAQ:INTC) to Neutral from Underperform, raising the price target to $25 from $19, following the appointment of Lip-Bu Tan as CEO.
- Tan previously led Cadence Design (NASDAQ:CDNS) to a 32x stock appreciation vs. SOX’s 16x.
- His expertise in electronic design automation (EDA) is expected to benefit Intel’s relationships with Cadence and Synopsys (NASDAQ
NPS).
- Analysts noted Intel's potential foundry joint venture with TSMC, which could support its turnaround strategy.
Super Micro Computer Upgraded on AI Growth
Rosenblatt reinstated coverage of Super Micro Computer (NASDAQMCI) with a Buy rating and a 12-month price target of $60, citing:
- AI revenues now account for 70% of total sales, providing 1-2 years of revenue visibility.
- Strong position in AI computing, benefiting from Green computing, liquid cooling, and modular architectures.
Citi Upgrades Xpeng on EV Sales Growth
Citi upgraded Xpeng (NYSE:XPEV) to Buy, raising the price target from $13.70 to $29.00, driven by:
- Stronger projected vehicle sales for 2025 (480,000) and 2026 (580,000).
- Revenue projections increased to Rmb79.2B in 2025 and Rmb93.3B in 2026.
- AI and robotics focus as potential long-term growth drivers.
Conclusion
This week’s analyst ratings highlight:
\u2714 Microsoft as a top defensive play in tech.
\u274c Tesla facing significant downside risks from weak sales and competition.
\u2714 Intel getting a potential turnaround boost from new leadership.
\u2714 Super Micro and Xpeng benefiting from AI and EV tailwinds.
Investors should watch upcoming earnings reports and market sentiment to gauge future stock movements.
