5 big analyst AI moves: Microsoft and Amazon downgraded, IBM started at Outperform
NeutralFinancial Markets
- Analysts have downgraded Microsoft and Amazon to neutral ratings, reflecting concerns that the generative AI boom may not replicate the success seen in the cloud computing sector. This decision comes amid weak economic fundamentals and high infrastructure costs, as noted by Redburn analyst Alexander Haissl.
- The downgrades are significant for both companies as they navigate a rapidly evolving tech landscape, where investor confidence is crucial. The ratings shift indicates a cautious outlook on their growth potential in the AI market, which is becoming increasingly competitive.
- This development highlights broader market anxieties regarding the sustainability of tech stock valuations, particularly in light of fears of an AI bubble. Additionally, ongoing investigations by the EU into potential anti-competitive practices in cloud services further complicate the operational environment for these tech giants.
— via World Pulse Now AI Editorial System




