Midday movers: Dell, MongoDB fall; Gap, Zscaler rise

JPM: Custom chip demand accelerating; AVGO and MRVL to dominate

JPMorgan raised its outlook for the custom chip (ASIC) market, projecting a market size of $20-$30 billion and a growth rate of 20% annually, driven by the surge in generative AI.

According to JPMorgan, this demand is fueled by cloud giants like Google and Meta, which are integrating their technology roadmaps and relying more heavily on custom-designed chips for AI workloads.

The bank highlights Broadcom... More

Telsey Reiterates Outperform Rating on Costco Wholesale (COST)

Telsey analyst Joseph Feldman reiterated an Outperform rating and $850.00 price target on Costco Wholesale (NASDAQ: COST).

The analyst comments "May 2024 Sales Preview: We forecast a total comp of 6.8% vs. (0.3%) last year. We expect a net neutral impact from gas and FX in... More

MongoDB (MDB) PT Lowered to $350 at Citi

Citi analyst Tyler Radke lowered the price target on MongoDB (NASDAQ: MDB) to $350.00 (from $480.00) while maintaining a Buy rating.

The analyst comments "Q1 results were a contrast to more resilient consumption prints (CFLT, SNOW, ESTC etc) with macro-related + GTM adjustments driving weaker... More

Zscaler (ZS) PT Lowered to $245 at Evercore ISI, 'Tough To Bet Against These Guys'

Evercore ISI analyst Peter Levine lowered the price target on Zscaler (NASDAQ: ZS) to $245.00 (from $270.00) while maintaining a Outperform rating.

The analyst comments "ZS delivered a strong beat and raise F3Q, headlined by billings growth of 30% (ahead of the 24%/25% bogey), revenue growth of 32% y/y, scale in large customers (50+ customers at $5mn+ ARR), and 22% operating margins despite ongoing customer scrutiny of large deals, changes in the sales organization, and higher than expected sales attrition... More

Gap, Inc. (GPS) PT Raised to $20 at CFRA

CFRA analyst Zachary Warring raised the price target on Gap, Inc. (NYSE: GPS) to $20.00 (from $15.00) while maintaining a Sell rating.

The analyst comments "We raise our 12-month price target by $5 to $20, based on 12.5x our FY 25 (Jan.) EPS estimate and below the... More

Ambarella (AMBA) PT Raised to $60 at CFRA

CFRA analyst Angelo Zino raised the price target on Ambarella (NASDAQ: AMBA) to $60.00 (from $50.00) while maintaining a Hold rating.

The analyst comments "We boost our 12-month target price to $60 from $50, utilizing an EV/sales of about 7x our FY 26 (Jan.)... More