Nvidia, Ralph Lauren Get Analyst Thumbs Up
Tuesday’s analyst calls painted a bullish picture for tech giant Nvidia and fashion retailer Ralph Lauren, while educational technology firm Chegg faced headwinds due to the rise of artificial intelligence.
Nvidia Boosted by New Chip
UBS analysts predict a bright future for Nvidia, reiterating their buy rating and raising their price target. The firm’s new Blackwell chip, the GB200, is seen as a major catalyst, particularly for artificial intelligence applications. Tech giants like Microsoft, Amazon, and Meta are expected to be major customers for the GB200, driving demand for Nvidia’s server racks.
Ralph Lauren’s Youthful Appeal
Jefferies initiated coverage of Ralph Lauren with a buy rating, citing the company’s strong fundamentals and its success in targeting younger consumers. The analyst highlighted the company’s focus on data analytics, social media presence, and celebrity endorsements as key drivers of growth. Ralph Lauren’s move towards a direct-to-consumer model is also seen as a positive, giving the company greater control over its branding and reducing wholesale risk.
Chegg’s AI Worries
Chegg, on the other hand, received a downgrade from Jefferies due to concerns about the impact of artificial intelligence on its core business. The analyst lowered their price target and rating for Chegg, citing the rise of free AI tools as a potential threat to the company’s paid subscription model. Chegg’s second-quarter guidance was seen as disappointing, fueling concerns about the company’s long-term growth prospects.
