Top Analyst AI Calls This Week: Apple’s Lag, Amazon’s Strength, and More
Here are the biggest analyst moves related to artificial intelligence (AI) this week, highlighting shifts in outlook for major tech companies like Apple, Amazon, AMD, and ASML.
Apple at Risk of Falling Behind in GenAI, Says Analyst
Needham & Co. issued a warning that Apple (NASDAQ:AAPL) may fall further behind in the generative AI (GenAI) race. The firm urged caution ahead of Apple’s upcoming Q3 earnings.
Analyst Laura Martin stated that Apple must present a clear AI strategy. Without it, the company faces increased pressure from investors and the media.
She emphasized the widening gap between iOS and Android, calling it an “existential risk” for a company that relies heavily on iPhone-driven revenue.
Martin also noted that Apple may soon announce a multi-billion-dollar licensing deal with firms like Anthropic or invest heavily in proprietary GenAI infrastructure. She warned of rising expenses and the risk of losing top AI talent to competitors such as Meta, OpenAI, or Anthropic.
Despite its high valuation, Apple lacks a dedicated GenAI revenue stream—unlike Google (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), which are already monetizing cloud-based LLM services. Martin believes Apple’s P/E multiple of 27.7x is too high given its slower growth and lagging strategy.
BofA Boosts Amazon Price Target on Strong AI and Retail Outlook
Bank of America (BofA) raised its price target for Amazon from $248 to $265 while keeping a Buy rating, citing confidence in Amazon’s Q2 performance and stronger growth in Amazon Web Services (AWS).
BofA now forecasts $164 billion in Q2 revenue, above the consensus of $162 billion, and $17.8 billion in profit, topping both the Street’s $17.0B and Amazon’s high-end guidance of $17.5B.
Analysts based their view on positive card transaction data and insights from Bloomberg Second Measure, indicating strong U.S. retail momentum. BofA expects Amazon North America to beat estimates by over 2%.
In international markets, currency gains from a stronger euro should lift revenue. For Q3, BofA sees guidance between $169B–$174B, with EBIT guidance of $14B–$18B, slightly below the consensus of $19.4B.
Recent AWS job cuts, along with AI demand and backlog growth, are expected to support margin improvements. BofA sees AWS as the key stock driver for the second half of 2025 and believes Amazon has room for multiple expansion, even at a 13.4x 2026 EV/EBITDA valuation.
AMD Upgraded to Buy on High-Performance Chip Demand
Erste Group upgraded AMD (NASDAQ:AMD) to Buy from Hold, citing strong demand for CPUs and GPUs in data center environments.
Analyst Hans Engel expects AMD to benefit in 2025 from rising demand for high-performance computing, noting a likely improvement in operating margins and profit growth.
He said, “The stock price should continue to rise due to AMD’s solid growth potential.”
ASML Upgraded on Strong 2026 Positioning in Chip Equipment Sector
New Street Research upgraded ASML (NASDAQ:ASML) to Buy with a €790 price target, highlighting the company’s leadership in semiconductor equipment.
While market forecasts expect just 2% revenue growth next year, New Street believes ASML’s advanced chipmaking technology gives it room to outperform peers.
Analysts noted the company’s exposure to leading-edge wafer fab equipment (WFE) and said risks in China are limited. A stable order intake in Q3 could also ease investor concerns about 2026.
With shares trading at 25x forward earnings, below peers like KLA, New Street believes the valuation is attractive and that ASML is well-positioned to lead.
BCA Warns AI May Destabilize Politics and Global Security
BCA Research issued a cautionary note, stating that AI could disrupt both domestic politics and international security. This comes as President Trump pushes to accelerate U.S. leadership in AI and pressures the Fed on interest rates.
Chief Geopolitical Strategist Matt Gertken warned that rapid AI advancements may lead to greater political polarization and growing distrust among global powers.
He expects future U.S. policies to include higher corporate taxes and more aggressive fiscal strategies aimed at tech giants. On the global stage, AI-driven military development could increase strategic instability and hurt international cooperation.
Gertken added that AI could amplify market volatility and force faster shifts in economic policy, becoming a long-term disruptive force in both geopolitics and markets.
