Apple Stands Out In Edge AI While Arista, Coherent, Dell And Super Micro Are Top Picks For Hardware: JPMorgan
Portfolio Pulse from Surbhi Jain
JPMorgan analyst Samik Chatterjee highlights Apple, Arista Networks, Coherent Corp, Dell Technologies, and Super Micro Computer as top picks in the AI hardware sector. Apple is noted for its underappreciated potential in AI-led hardware upgrades, while Arista, Coherent, Dell, and Super Micro are recognized for their strong positions in high-margin AI segments.
June 24, 2024 | 12:42 pm
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POSITIVE IMPACT
Apple's potential for AI-led hardware upgrades is underappreciated, making it a top pick in the Edge AI market.
Apple's strong position in the high-end smartphone market and favorable Profit TAM make it a standout in Edge AI, likely boosting investor confidence and short-term stock performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Arista Networks is highlighted for its leadership in the AI Switching market with high gross margins and significant growth opportunities.
Arista's robust IP in software stacks and high job completion rates position it well in the high-margin AI Switching market, likely leading to positive short-term stock movement.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Coherent Corp is recognized for its dominance in the AI High-Speed Optics market, benefiting from a large TAM and strong gross margins.
Coherent's design and manufacturing expertise in AI High-Speed Optics positions it to capture a significant portion of the Profit TAM, likely leading to positive short-term stock performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Dell Technologies is noted for its diverse AI portfolio, including AI Storage and AI PCs, which enhance its Profit TAM opportunities.
Dell's investment in Enterprise Server capabilities and services differentiates it from competitors, likely leading to positive short-term stock performance despite intense competition.
CONFIDENCE 75
IMPORTANCE 55
RELEVANCE 60
POSITIVE IMPACT
Super Micro Computer is highlighted for its customization capabilities and better margins in the competitive AI Server market.
Super Micro's strong position and customization capabilities in the AI Server market underscore its profitability and growth potential, likely leading to positive short-term stock performance.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60