Here are the biggest analyst moves in the area of artificial intelligence (AI) for this week.

KeyBanc highlights 2 AI stocks amid strong supply chain checks

KeyBanc analysts identified Nvidia and Broadcom as the strongest performers in their latest semiconductor supply chain checks, pointing to rising capacity and major AI wins that reinforce their leadership in the sector.

For Nvidia, the broker cited robust demand and expanded capacity. The company has lifted its advanced packaging (CoWoS) supply for 2025 to 530,000 interposers, more than 40% above this year’s levels.

Nvidia had requested 600,000 units for 2026 but was capped at 530,000 as TSMC sought to avoid overbooking. With manufacturing yields improving, Nvidia is expected to ship about 30,000 AI racks in 2025 and at least 50,000 in 2026.

KeyBanc also pointed to higher performance requirements for Nvidia’s Rubin GPU, aimed at staying ahead of AMD’s MI400. Specifications include boosting memory transfer speeds to 10 Gbps from 8 Gbps and increasing power needs to 2.5kW from 1.8kW.

“We’re hearing that this is being motivated by NVDA’s desire to maintain a significant performance gap and product leadership vs. AMD even once Helios is released,” the analysts said.

Broadcom’s outlook was described as similarly strong. The company raised its 2026 CoWoS supply target to 190,000 units, a more than 160% increase from the prior year. KeyBanc said Broadcom benefits from delays to TPU7e chips, keeping full control of Google’s TPU franchise through 2026, with TPU volumes set to more than double that year.

The analysts also flagged major AI ASIC wins, including OpenAI with an estimated 400,000–500,000 units and Apple at around 100,000 units.

To reflect these trends, KeyBanc raised its price targets on both names, lifting Nvidia to $250 from $230 and Broadcom to $420 from $400, while reiterating Overweight ratings.

Apple gets a new Buy rating on compelling valuation

This week, Seaport Research Partners began coverage of Apple with a Buy rating and a $310 price target, citing what it called an attractive entry point ahead of a key product upgrade cycle.

The brokerage highlighted Apple’s ability to lift prices across its iPhone lineup while monetizing its large user base.

“1.4 billion people own an iPhone, making up the core of Apple’s business,” analyst Jay Goldberg said, though he noted that figure has stopped growing as device sales have been flat to down over the past three years.

Despite sluggish unit growth, Apple has leaned on its installed base, with another 1 billion devices tied into the iPhone ecosystem, which has fueled services revenue in areas such as Music and AppleCare.

Goldberg described valuation as “compelling ahead of a solid upgrade cycle this year and a possible foldable phone (and higher ASPs) next year.” He argued that Apple’s sticky network effects continue to reinforce its pricing power even as hardware refresh cycles lengthen.

The analyst pointed to two key uncertainties. Apple’s heavy reliance on China for manufacturing leaves it vulnerable to geopolitical risk, with diversification expected to take years.

At the same time, he warned that Apple has “too many AI strategies," which could pose a risk if consumers perceive a stronger AI experience elsewhere, potentially undermining iPhone’s dominance.

On the flip side, success in AI could set off a “super cycle of upgrades," Goldberg said. He called both issues “existential questions for the company, playing out over the next several years.”

Google has become an AI winner, says M.Stanley, lifts price target

Morgan Stanley raised its price target on Alphabet to $270 from $210, with a $335 bull case, saying the company has moved from doubt to leadership in the artificial intelligence race.

“GOOGL investor tone and discussions have quickly shifted as pace of innovation has accelerated, the DoJ remedy was even more benign than we (as bulls) thought, and there is growing positive GenAI adoption signal across multiple GOOGL business lines,” Morgan Stanley analysts wrote.

Alphabet’s valuation has also re-rated meaningfully. “GOOGL’s P/E (on ‘26) has risen ~45% since April’s spring troughs…now at ~22X, a ~10% premium to GOOGL’s 5-year NTM average multiple,” the bank highlighted.

“GOOGL has become an ‘AI Winner’ which we think is right, but we are also accountable to multiples vs. growth and history," it added.

Looking ahead, Morgan Stanley said earnings revisions will be key. “From here we are focused on upward revisions, specifically in Search and GCP,” it wrote, flagging faster growth from generative AI.

The Wall Street firm now forecasts search revenue growth of 10% in 2026 and 8% in 2027, above previous estimates.

The analysts noted that “Gemini app downloads are trending well,” but placed greater emphasis on the company’s innovation pipeline.

“We are more encouraged by GOOGL’s expanding GenAI-enabled capabilities across its leading user bases and data (like Chrome most recently),” they said.

’Increasingly difficult’ to like Tesla stock amid rich valuation, broker says

Earlier in the week, brokerage William Blair raised its third-quarter delivery estimates for Tesla but cautioned that the stock’s premium valuation makes it “increasingly difficult” to sustain a positive stance.

Ahead of results on October 2, the firm said the expiration of the $7,500 U.S. EV tax credit spurred stronger-than-expected demand.

“We now estimate 480,000 deliveries versus the Street’s 443,000,” its analysts wrote, citing U.S. demand for the new Model Y as a “bright spot” and noting that a recovery in China and other markets offset weakness in Europe.

Even so, William Blair struck a cautious tone. “Next quarter we are cautious on margins from a hangover on auto deliveries and lower regulatory credit revenue,” it said.

At the same time, excitement around Tesla’s robotaxi program, Elon Musk’s stock purchase, and new energy storage products has “pushed the stock to near all-time highs.”

Valuation remains the sticking point. Tesla shares are trading at “an enterprise value of 118x our 2026 EBITDA estimate… a significant premium to technology peers at 20-25x,” analysts wrote.

They warned that impacts from the OBBB could force “a reset to Street consensus as the multiple premium will be put under pressure.”

William Blair kept its Market Perform rating, but acknowledged it is “finding it increasingly difficult to maintain” given the backdrop.

Analysts said they will look for “more data points on our bullish views on energy storage and robotaxi to regain momentum” after estimates reset, while highlighting risks tied to Chinese competition, geopolitical exposure to China, and “key-man risk with CEO Elon Musk.”

Morgan Stanley lifts TSMC target to Street-high NT$1,588 on AI strength

Morgan Stanley raised its price target on Taiwan Semiconductor Manufacturing Co. to NT$1,588 from NT$1,388, the highest on the Street, citing strong AI demand, stable foreign exchange, and pricing power.

“We also expect TSMC to beat its coming 4Q25 revenue and gross margin guidance, given the strong AI demand and stable FX,” the bank’s analysts wrote, calling the stock their sector Top Pick.

They said “AI semi demand continues to show upside,” driven by growth in both AI ASICs and GPUs into 2026.

Morgan Stanley lifted its CoWoS capacity forecast to 100,000 units by 2026 from 90,000. It noted Nvidia’s Rubin chip could consume 3nm wafers and flagged “pull-in from its networking chip schedule,” creating a shortage that may push TSMC to raise 3nm wafer prices by at least 5% in 2026.

On advanced processes, the analysts said customers are “embracing TSMC’s 2nm, A16, and A14 technologies to achieve better energy efficiency.”

Checks suggest Apple’s iPhone 18 will adopt 2nm chips in 2026, while Nvidia’s Feynman may use the A16 process in 2028. Intel is also “engaging with TSMC for A14 outsourcing.”

Morgan Stanley raised its earnings forecasts, with 2026 and 2027 estimates up 10% and 14.8%, respectively.

It now sees 2025 revenue rising 33% year-on-year in U.S. dollar terms, with a gross margin of 58.5%. The bank expects 4Q25 revenue to be flat to up sequentially, “better than the Street’s forecast of a 5%-10% Q/Q drop.”