5 big analyst AI moves: Muse AI seen as major catalyst for Meta; MSFT upgraded

Analysts are making significant moves in AI-related stocks this week. Stifel upgraded Microsoft's stock to Buy with a higher price target of $575, citing Microsoft's success post-June quarter and expected AI-related growth. Microsoft's Azure revenue is expected to increase by 200 to 300 basis points, aided by efficiency gains and the shift to consumption-based pricing for GitHub. Analysts believe Microsoft can sustain mid-to-upper-teens revenue growth, despite moderating seat growth in Microsoft 365.

Meta also received positive attention from analysts following its Connect event, where the Muse AI agent was introduced. Evercore ISI kept its Outperform rating and raised the price target to $860, considering Muse AI downloads and revenue potential. Mizuho's Lloyd Walmsley also raised his price target for Meta to $750, citing the success of Muse Charm, a keychain-like device. Citi also maintained its Buy rating and $800 target, having a more positive outlook on Meta shares after the event.

Micron Technology was highlighted by Citi, who raised its price target to $1,300, expecting the stock to rally before the SEMICON West conference. The analysts anticipate DRAM pricing to improve and a potential bottleneck in memory chip manufacturing, resulting in higher memory prices.