Notable Analysts This Week: Intel, Super Micro Computer, Zscaler Among Top Picks

The S&P 500 (SP500) closed lower on Friday after an eventful week in which August’s jobs report was mixed and left investors worried about economic growth and the financial results of companies like Broadcom.

This week’s Nasdaq (COMP:IND)) fell slightly, while the Dow (DJI) lost 0.4%.

Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the top calls for the week:

Erste downgrades Intel over AMD competition concerns

Research firm Erste downgraded semiconductor giant Intel (INTC) from Hold to Sell, citing increased competition from AMD. Erste analysts said AMD’s processors have become very competitive with Intel’s offerings as AMD, led by Lisa Su, has made progress on both hardware and software milestones.

Meanwhile, Citi analyst Christopher Danely said Intel should get out of the foundry business for the good of shareholders.

Barclays Downgrades Super Micro Computer on Reduced AI Margin Visibility

Super Micro Computer (SMCI) continues to be in the spotlight after Barclays downgraded its rating from Overweight to Equal-Weight, citing uncertainty over margins in its AI segment and visibility into internal controls.

Analyst George Wang highlighted factors such as “limited visibility into future AI server gross margin trends, customer erosion, weaker competitive positioning, and higher working capital requirements” as reasons for the ratings revision. The brokerage also lowered PT to $438 from $693.

Last Tuesday, Hindenburg announced its short position and the company said it would not be able to file its annual report on time, leading to a drop in the share price.

JP Morgan downgraded the stock from “Overweight” to “Neutral,” saying uncertainty surrounding the 10K delay and subsequent reaction will likely lead to a short-term glut in the stock.

Zscaler’s Conservative Guidance Leads Wall Street to Downgrade Ratings, Lower PT

Zscaler (ZS) came under the spotlight after the cybersecurity company delivered weaker-than-expected guidance, prompting BofA to downgrade its rating from Buy to Neutral and lower its PT from $265 to $195.

“We think the weakness in growth in the first half of the year could be a signal of deeper, longer-term growth issues,” BofA analyst Tal Liani wrote.

Meanwhile, UBS analyst Roger Boyd lowered PT from $270 to $250 and said he was “trying to understand” what he called a “more conservative guide.” JP Morgan analyst Brian Essex lowered PT from $230 to $220, saying the outlook indicated weaker-than-expected settlements in 1H25.

UBS sees transition years for ASML, downgrades stock rating

UBS downgraded ASML (ASML) shares from Buy to Neutral as the brokerage expects the upcoming changes to take several years to play out.

The company, which lowered its target price on the stock from €1,050 to €900, said that while the 2025 outlook shows some near-term growth potential, analysts believe the narrative will start to shift towards 2026/27, where they predict a decline in consensus EBIT.

The brokerage expects earnings per share to grow at a 13% compound annual growth rate, or CAGR, between 2025 and 2030, compared with 24% between 2018 and 2025, which it says justifies “normalizing” multiples relative to peers and history.

Separately, Morgan Stanley replaced AML with Arm Holdings (ARM) as its top pick in the European semiconductor sector.

Freeport McMoRan gets copper outlook upgrade from UBS; Wolfe upgrades Alcoa’s aluminum outlook

UBS raised Freeport McMoRan (FCX) shares from Neutral to Buy and set a $55 price target, with analyst Daniel Major saying FCX is the most liquid global copper stock with a high correlation to rising copper prices.

The analyst sees short-term risks from a downside consensus but believes current levels represent an attractive entry point in the medium term.

Wolfe raised Alcoa (AA) Outperform from Peer Perform to a $36 price target, citing weakness in the stock over the past month despite a roughly 6% increase in aluminum prices. The upgrade was attributed in part to Alcoa’s increased stake in Alumina.

Nordstrom promoted by Barclays after take-private deal

Barclays raised its rating on Nordstrom (JWN) shares from “underweight” to “equal” after a group of investors led by the Nordstrom family made a non-binding takeover bid for the department store chain for about $3.8 billion.

The brokerage house, which set the PT equal to the offer price of $23, sees the move to delist the company as “the right decision for the business in the long term.”

In addition to the companies mentioned above, there were several other analyst actions during the week, including a downgrade of Jefferies Holding Reservation (BKNG) is rated a hold rather than a buy as analysts John Colantuoni and Brent Thill have doubts that the company, like other names in the industry including Airbnb (ABNB) and Expedia (EXPE), will be able to sustain levels of room rate growth that support its outlook and sustain free cash flow.

BofA initiated coverage Live entertainment (LYV) with a Buy rating and said several key factors such as a shift in consumer spending toward experiential experiences, positive supply and demand trends as more artists and events are discovered via social media, the unique value of live events, and others are expected to drive the company’s long-term growth.

JP Morgan upgraded rating NIO (NIO) changed its rating from Neutral to Overweight, saying the company values ​​greater clarity with new model initiatives and plans for 2025.

Nasdaq (NDAQ) received a rare double upgrade from BofA to Buy from Underperform on the wide-moat, fast-growing software and information services company. The brokerage said the company’s trading activity is also poised to benefit as BofA forecasts a rebound in IPOs following the U.S. presidential election.