Wall Street shifts views on key tech and consumer names

Analysts turn positive on Spotify as valuation resets

Spotify drew a notable vote of confidence as Citi upgraded the stock to Buy from Neutral while maintaining a $650 price target. The bank argued that Spotify’s valuation has become attractive after recent trading and that both revenue and profitability could run ahead of current Wall Street expectations. Citi’s revenue forecast is 1% to 2% above consensus, driven largely by Premium average revenue per user (ARPU) that is modeled 2% higher than sell-side estimates. The firm also sees adjusted EBITDA roughly 3% above the Street, supported by stronger revenue and gross margin assumptions.

Citi highlighted several potential catalysts that could improve sentiment, including incremental price increases in the EU, parallel hikes from rival digital service providers that would reduce share-loss risk for Spotify, and the prospect of accelerating share repurchases funded by solid free cash flow and a strong balance sheet. The bank did flag two risks: the possibility that Spotify uses cash for an AI-music acquisition rather than buybacks, and a scenario where rivals avoid price increases, which could renew concerns over market share and longer-term margins.

Nvidia, Broadcom and Micron: differing AI hardware narratives

AI infrastructure remains a central theme across semiconductor research, with multiple firms updating views on leading suppliers. Wolfe Research raised its price target on Nvidia to $275 from $250, arguing that rack-scale AI systems, higher average selling prices and sustained margins could drive earnings beyond current expectations. The firm’s supply chain checks suggest Blackwell rack shipments reached around 1,000 units per week by the end of 2025 and could maintain that pace through 2026, with next-generation Rubin racks ramping in the second half of the year. Wolfe models 7.2 million data center GPU units in 2026 and 9 million in 2027, and forecasts Nvidia’s data center revenue exceeding $450 billion in 2027 with gross margins around 75%.

Separately, Wolfe upgraded Broadcom to Outperform with a $400 target, citing growing confidence in Google’s tensor processing unit (TPU) roadmap and Broadcom’s role as a key ASIC supplier. The firm’s updated model assumes TPU shipments could reach about 3.3 million units in 2026 and 5.1 million in 2027, driving AI ASIC revenue estimates of roughly $44 billion and $78.4 billion, respectively. Networking revenue is also modeled to grow sharply, with AI networking seen up about 55% in 2027. In memory, commentators noted that Micron’s recent earnings shortfalls were tied to supply constraints rather than demand weakness. Jim Cramer characterized Micron’s latest miss as demand-driven, suggesting the company “couldn’t meet demand” amid ongoing shortages, while AI leader Nvidia continued to trade strongly.

Macro and political crosscurrents hit Tesla, Meta and others

Auto and internet large caps also saw fresh analyst moves. Tesla received mixed signals, with Truist trimming its price target slightly to $438 while maintaining a Hold rating, and TD Cowen lifting its target to $519 with a Buy rating. Truist pointed to a modest Q4 revenue and margin beat but underscored that Tesla’s push to become an AI hardware and software company entails significant capital expenditure. TD Cowen described Q4 results as broadly in line with its expectations, noting that margin strength and positive RoboTaxi commentary were offset by high capex guidance and the absence of a firm timeline for unsupervised Full Self-Driving.

In internet software, Truist raised its price target on Meta Platforms to $900 from $875 while keeping a Buy rating, citing stronger-than-expected Q4 results and an “impressive” Q1 outlook. The firm highlighted robust advertising demand supported by AI-led improvements in ad recommendations, monetization and user engagement. Analysts and commentators also continued to navigate a politicized macro backdrop. Credit card lenders, including American Express, responded to President Trump’s call for a temporary 10% cap on credit card rates, with Amex CEO Stephen Squeri saying a cap would reduce access to credit and slow the economy. In addition, Trump’s nomination of Kevin Warsh as the next Federal Reserve chair and ongoing tariff threats against Canadian aircraft imports added to policy uncertainty for rate-sensitive and trade-exposed sectors.

Consumer and chip names in focus on U.S.-China dynamics

Soft consumer and China-related demand remained under scrutiny for several global brands. NIKE’s performance in China continued to draw attention, with some commentary viewing its local moves as critical to turning around the business. Jim Cramer suggested that Nike’s efforts in China could eventually “lead to a turn,” echoing prior analyst concerns about the brand’s pace of recovery in the market. At the same time, chipmakers with China exposure faced a divergent set of views, as investors weighed export controls against Beijing’s reported interest in advanced AI hardware.

Media reports indicated that Chinese authorities had encouraged domestic technology firms to prepare to buy Nvidia’s H200 AI chips. However, Cramer expressed skepticism about the scale and timing of China-related upside for Nvidia under current U.S. export rules. He also revisited recent debate around Nvidia’s investment in infrastructure firm CoreWeave, pushing back on speculation about “circular” deal structures and adding that the partnership was designed to expand data center capacity. Across the semiconductor complex, Cramer highlighted Texas Instruments’ most recent earnings call as particularly strong, pointing to industrial and data center strength and describing the company as “crushing it” in those segments, even as some peers contended with more mixed AI and cyclical demand trends.