Jefferies Financial stated that Microsoft (MSFT.US), Google (GOOG.US, GOOGL.US), and Amazon (AMZN.US) could become the winners in the AI Software field next year.
According to Zhitong Finance APP, investment company Jefferies Financial stated that Microsoft (MSFT.US), Google (GOOG.US, GOOGL.US), and Amazon (AMZN.US) could become the winners in the AI Software field next year.
Jefferies Financial Analyst stated: "Microsoft is the main beneficiary of [generative] AI, and will benefit from infrastructure (Azure AI) and application opportunities (various Copilots), but since the release of ChatGPT, the stock has lagged behind the performance of the iShares Expanded Technology Software Industry ETF (IGV.US) by 19%. With the re-acceleration of Azure and the strengthening momentum of Copilot, we believe Microsoft will rise again."
Jefferies Financial rated Microsoft as "Buy" with a Target Price of $550.
Meta Platforms (META.US) is also expected to become a beneficiary of generative AI as it can launch AI tools through various applications to approximately 4 billion users and over 0.2 billion businesses.
Jefferies Financial Analyst stated: "Meta can further leverage generative AI to create new revenue streams beyond advertising through Llama and WhatsApp.
Jefferies Financial Analyst stated that Amazon's market share in the Cloud Computing Service provider market exceeds 50%, which should bring "strong AI revenue potential" over time.
Jefferies maintains a "Buy" rating for Amazon and raises the target price from $235 to $275.
Another beneficiary in the AI Software field is Snowflake (SNOW.US), whose CEO Sridhar Ramaswamy (who took office in February this year) may change the company's trajectory.
Jefferies Analysts stated: "We believe that after bottoming out in 2024, Snowflake's business will reach a turning point in fiscal year 2025, with strong growth in order volume and increased contributions from AI supporting revenue growth and significantly improving profit margins over the next 2-3 years."
Jefferies raised Snowflake's target price from $180 to $200 and maintained a "Buy" rating.
In addition, Google is considered a pioneer in the AI field and plans to launch more new products. These products will be promoted through its 7 applications, each with over 2 billion users.
Jefferies Analysts stated: "The outstanding performance of Google's model enables it to make significant progress in the Cloud Computing field, where it currently lags behind its peers."
