Option chain shows key data for LawFinance's stock options at various strike prices and expiration dates. Traders use this information to analyze potential trades and assess market sentiment for LawFinance.

LawFinance (OTC:JKLPF) Stock, Option Chain

LawFinance Ltd is engaged in the disbursement funding and short-term funding business in Australia and the United States. It operates through three segments, JustKapital Finance; National Health Finance and Litigation Funding. The company offers appeal, estate, portfolio, and settlement finance services; and provides investigation and management services, and finance to claimants to progress their claim. It also offers disbursement funding solutions for law firms; insurance broking for the placement of after the event insurance; and revolving lines of credit and custom-designed financing solutions.

LawFinance Ltd

Barclays analyst Tom O'Malley maintains Cirrus Logic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>) with a Equal-Weight and raises the price target from $105 to $115.

News

Price Target

Analyst Ratings

CRUS

Barclays Maintains Equal-Weight on Cirrus Logic, Raises Price Target to $115

Keybanc analyst Eric Gonzalez maintains Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) with a Overweight and lowers the price target from $66 to $64.

Keybanc Maintains Overweight on Chipotle Mexican Grill, Lowers Price Target to $64

The digital asset community is approaching the newfound embrace of crypto by the Trump administration with cautious optimism, after a Tuesday press conference led by David Sacks, <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43477333/crypto-czar-sacks-says-potential-bitcoin-reserve-to-be-one-of-crypto-committees-first-priorities">the designated &#8220;Crypto Czar.&#8221;</a>
What Happened: While the rhetoric surrounding innovation and regulatory clarity has been well-received, industry experts are now scrutinizing the actual plans and questioning whether the proposed changes will truly benefit the broader crypto ecosystem.
Experts see this as a critical juncture, but they also caution against potential pitfalls.
The formation of a bipartisan working group was a central announcement, signaling an effort to harmonize regulatory efforts across Congress and the executive branch. 
The initiative aims to create a framework for stablecoins and market structure legislation, which could have profound implications for the global financial system.
Speaking with Benzinga, Todd Ruoff, CEO of Autonomys, pointed out the measured approach outlined by Sacks. 
"Lawmakers are ‘exploring the possibilities,'" Ruoff said, noting that the emphasis was on forming committees, educating Congress, and determining the feasibility of frameworks. 
While these early steps are crucial, Ruoff highlighted the economic implications of stablecoin legislation. 
"Higher demand for T-bills would cause their prices to go up, which in turn pushes yields down and lowers interest rates," he said. 
This approach could tie stablecoin adoption directly to the strength of the U.S. dollar and the Treasury market.
Notably, stablecoins could serve as both a technological and economic tool. 
By linking their reserve requirements to U.S. Treasuries, stablecoins could provide a new channel for Treasury demand, reinforcing the dollar's dominance. 
However, this integration would require careful calibration to avoid market distortions, especially given the size of the stablecoin market, which currently exceeds $227 billion.
Paul Neuner, founder of Telcoin, told Benzinga the announcement marks a turning point for crypto in the U.S., where regulators are no longer trying to suppress innovation but are instead working to position the country at the center of digital assets.
He drew parallels to the regulatory evolution seen during the rise of Web 2.0, emphasizing that crypto regulation should focus on gateways like digital asset banks rather than attempting to control decentralized networks.
The media briefing also highlights a shift in regulatory thinking. 
Instead of enforcing broad restrictions, the focus on key entry points like digital asset banks suggests a pragmatic approach. 
This strategy could ensure compliance without stifling innovation, fostering an environment where blockchain-based financial services can thrive alongside traditional systems.
Joao Reginatto, Chief Strategy Officer at M^0, praised the administration's progress on stablecoin clarity. 
"The pace with which the Trump administration is moving through the phases is welcomed by the sector," Reginatto told Benzinga. 
He highlighted the balance between federal oversight and flexibility for state regulators, calling it a "reasonable approach."
Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43475386/exclusive-anthony-scaramucci-warns-donald-trumps-crypto-promises-may-be-a-mirage">EXCLUSIVE: Anthony Scaramucci Warns Donald Trump&#8217;s Crypto Promises May Be A &#8216;Mirage&#8217;</a>
Why It Matters: Experts point to a potential decentralization of stablecoin oversight, with state regulators playing a significant role.
This could align with the broader U.S. tradition of federalism while addressing the specific needs of different jurisdictions. 
However, it also raises questions about uniformity and consistency, particularly for large-scale issuers operating across states.
Speaking with Benzinga, Laurenth Alba, Head of Business Development at Rome Protocol, sees the bipartisan effort as a clear sign of crypto's growing importance and said the bipartisan working group and Senate stablecoin bill suggest that crypto is now a national economic and geopolitical priority, not just a speculative asset class.
However, he warned that overregulation could drive users toward decentralized alternatives. "The real threat to dollar hegemony isn't crypto—it's bad policy that pushes financial innovation beyond U.S. control."
There is a delicate balance regulators must strike. 
While integrating stablecoins into the financial system could bolster the dollar's dominance, excessive control risks alienating innovators and users. 
This could create an unintended shift toward decentralized stablecoins or alternative financial systems, eroding the very dominance the U.S. seeks to strengthen.
Alice Liu, Research Lead at CoinMarketCap, acknowledged the administration's recognition of past regulatory missteps. 
"David Sacks and team acknowledged past policies have been inconsistent and, at times, arbitrary—pushing crypto innovation offshore," Liu told Benzinga. 
She emphasized that the focus on stablecoins is a logical first step, given their role in global financial markets. 
However, Liu noted a missed opportunity in the absence of a clearer plan for Bitcoin reserves, which some stakeholders had anticipated.
While stablecoin regulation is critical, Bitcoin remains central to the crypto ecosystem. 
A well-defined policy on Bitcoin could provide additional clarity, particularly as other nations explore BTC as a reserve asset.
Dave Sedacca, Head of Finance at Parity Technologies, viewed the announcement as a positive step but noted market expectations for more impactful measures. 
"The emphasis on reinforcing the dollar from a digital perspective was encouraging, and it will be intriguing to see how the BRICS nations respond," Sedacca said.
As BRICS nations explore alternatives to the dollar, the U.S.'s focus on digital assets could serve as a counterbalance. 
However, this will require swift and effective action to avoid falling <a href="https://www.benzinga.com/markets/cryptocurrency/23/07/33333534/brics-emerges-as-new-global-powerhouse-us-dollar-faces-uncertain-future">behind in the global financial race.</a>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43473182/could-the-trump-established-sovereign-wealth-fund-invest-in-bitcoin-nvidia-tiktok">Could The Trump-Established Sovereign Wealth Fund Invest In Bitcoin, Nvidia, TikTok?</a></li>
</ul>
Image: Shutterstock

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

EXCLUSIVE: 'Crypto Czar' Charm Offensive Welcomed, But Experts Wonder: Will US Policy Deliver?

Keefe, Bruyette &amp; Woods analyst Meyer Shields maintains Aon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AON#NYSE">AON</a>) with a Outperform and raises the price target from $411 to $414.

Keefe, Bruyette & Woods Maintains Outperform on Aon, Raises Price Target to $414

Barclays analyst Jeffrey Bernstein maintains Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) with a Equal-Weight and lowers the price target from $63 to $60.

Barclays Maintains Equal-Weight on Chipotle Mexican Grill, Lowers Price Target to $60

On Wednesday, Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) reported sales of roughly $12.25 billion (85.68 billion Danish kroner) for the fourth quarter of 2024, beating the consensus of $11.34 billion (79.73 billion Danish Kroner).
Sales increased by 30% in Danish kroner and at CER compared to 2023.
GLP-1 diabetes sales increased by 12% at CER to 42.17 billion Danish kroner, and Obesity care sales increased by 91% at <a target="_blank" href="https://www.benzinga.com/25/02/43459558/novo-nordisk-faces-investor-concerns-over-hybrid-cagrisema-trial-results-for-weight-loss" rel="noreferrer noopener">CER to 21.41 billion Danish kroner</a>.
Ozempic <a target="_blank" href="https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=915255" rel="noreferrer noopener">sales</a> increased 12% to 33.85 billion Danish kroner, and Wegovy sales more than doubled <a target="_blank" href="https://www.benzinga.com/general/biotech/25/02/43475491/novo-nordisk-stock-q4-earnings-analysts-68-upside" rel="noreferrer noopener">to 19.87 billion Danish kroner</a>.
Insulin sales increased 36% to 15.9 billion Danish kroner, and Rare disease sales increased 25% at CER to 5.71 billion Danish kroner.
Also Read: <a target="_blank" href="https://www.benzinga.com/general/health-care/25/01/43321236/rfk-jr-and-big-pharma-stocks-to-watch-as-health-secretary-hopeful-answers-pointed-questions-on-drugs-insurance-trump-exec-orders" rel="noreferrer noopener">RFK Jr. And Big Pharma: Health Secretary Hopeful Answers Pointed Questions On Drugs, Insurance, Trump Exec Orders</a>
The Danish pharmaceutical giant&#8217;s net profit increased by 29% to 28.23 billion kroner, with EPS of 6.34 Danish kroner, up 29%, beating the consensus of 5.82 Danish kroner. In USD terms, EPS of $0.91 beat $0.83 consensus.
In its earnings release, Novo Nordisk outlined its plans to conduct a new phase 3 trial in 2025 to further explore <a target="_blank" href="https://www.benzinga.com/24/12/42613036/novo-nordisks-hybrid-weight-loss-drug-falls-short-on-expectations-stock-plunges" rel="noreferrer noopener">CagriSema&#8217;s weight-loss potential</a>.
The results from the second pivotal phase 3 trial, REDEFINE 2, of CagriSema in adults with type 2 diabetes and either obesity or overweight are expected during the first quarter of 2025
To secure <a target="_blank" href="https://ml-eu.globenewswire.com/Resource/Download/365675dd-10f3-4293-9aec-ede9f63375c6" rel="noreferrer noopener">supply</a> chain readiness, the company now expects to file for the first regulatory approval of CagriSema during the first quarter of 2026.
Guidance: Novo Nordisk expects sales growth of between 16% and 24% in constant exchange rates this year, lower than the 26% achieved in 2024.
&#8220;In 2025, we will continue our focus on commercial execution, on the progression of our early and late-stage R&amp;D pipeline and on the expansion of our production capacity,&#8221; Chief Executive Lars Fruergaard Jorgensen said.
The company expects 2025 operating profit growth of 19% to 27% in constant exchange rates.
Novo Nordisk adds that the outlook reflects expected continued periodic supply constraints and related drug shortage notifications across several products and geographies. Novo Nordisk is investing in internal and external capacity to increase supply in the short and long term.
Price Action: At last check on Wednesday, NVO stock was up 3.09% at $85.17 during the premarket session.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/02/43475015/spotifys-strong-subscriber-growth-and-rising-margins-keep-analysts-bullish" target="_blank" rel="noreferrer noopener">Spotify Is Still One Of Top 4 Best Ideas For 2025: Analyst</a></li>
</ul>
Photo via Shutterstock

Biotech

Earnings

Large Cap

Guidance

Health Care

Movers

Trading Ideas

General

Novo Nordisk Q4 Earnings: Wegovy Sales More Than Double, Seeks Regulatory Approval For Hybrid Weight Loss Drug In 2026

WIIM

Market Index Target Term Securities Linked To The Dow Jones Industrial Average

SunCar Technology Group shares are trading lower after the company reported a year-over-year decrease in 9-month financial results.

Snap Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>) reported better-than-expected fourth-quarter financial results after Tuesday&#8217;s closing bell.
Snap reported quarterly earnings of 16 cents per share, which beat the analyst consensus estimate of 14 cents. Quarterly revenue came in at $1.55 billion, which beat the analyst consensus estimate of $1.54 billion and is an increase over revenue of $1.36 billion from the same period last year.
Snapchat had 453 million daily active users in the fourth quarter, up 9% year-over-year.
"In 2024 we made significant progress on our core priorities of growing our community and improving depth of engagement, driving top-line revenue growth and diversifying our revenue sources, while building toward our long-term vision for augmented reality," said Evan Spiegel, Snap CEO
Snap shares gained 3.9% to close at $11.60 on Tuesday.
These analysts made changes to their price targets on Snap following earnings announcement.
<ul>
<li>Wells Fargo analyst Ken Gawrelski downgraded Snap from Overweight to Equal-Weight and lowered the price target from $15 to $11.</li>
<li>B of A Securities analyst Justin Post maintained the stock with a Neutral and raised the price target from $14 to $14.5.</li>
</ul>
Considering buying SNAP stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="586" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05074230/image-43-1024x586.png" alt="" class="wp-image-767005" style="width:559px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05074230/image-43-1024x586.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05074230/image-43-300x172.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05074230/image-43-768x439.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05074230/image-43.png 1087w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read This Next: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/25/02/43460681/jim-cramer-says-no-to-bigbear-ai-recommends-buying-this-tech-stock">Jim Cramer Says No To BigBear.ai, Recommends Buying This Tech Stock</a></li>
</ul>

Markets

SNAP

These Analysts Revise Their Forecasts On Snap After Q4 Results

Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) will release its third-quarter financial results, after the closing <a href="https://www.benzinga.com/quote/ARM/earnings">bell, on Wednesday, Feb. 5, 2025.</a>
Analysts expect the UK-based company to report quarterly earnings at 34 cents per share, up from 29 cents per share in the year-ago period. Arm Holdings projects quarterly revenue of $948 million, compared to $824 million a year earlier, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
British chip designer Arm's Chinese venture is eyeing Chen Feng, a former Rockchip Electronics Co. officer, as its CEO, taking over from co-CEOs Liu Renchen and Eric Chen.
Arm Holdings shares gained 4.2% to close at $162.20 on Tuesday.
Benzinga readers can access the latest analyst ratings on the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">Analyst Stock Ratings</a> page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate <a href="https://www.benzinga.com/quote/ARM/analyst-ratings">analysts have rated the company</a> in the recent period.
<ul>
<li>Barclays analyst Blayne Curtis maintained an Overweight rating and raised the price target from $145 to $155 on Jan. 17, 2025. This analyst has an accuracy rate of 74%.</li>
<li>UBS analyst Timothy Arcuri initiated coverage on the stock with a Buy rating and a price target of $160 on Nov. 25, 2024. This analyst has an accuracy rate of 77%.</li>
<li>Loop Capital analyst Ananda Baruah maintained a Buy rating and increased the price target from $130 to $180 on Nov. 11, 2024. This analyst has an accuracy rate of 75%.</li>
<li>JP Morgan analyst Harlan Sur maintained an Overweight rating and raised the price target from $140 to $160 on Nov. 7, 2024. This analyst has an accuracy rate of 80%.</li>
<li>Goldman Sachs analyst Toshiya Hari maintained a Buy rating and raised the price target from $144 to $159 on Nov. 7, 2024. This analyst has an accuracy rate of 81%.</li>
</ul>
Considering buying ARM stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="498" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05022643/image-33-1024x498.png" alt="" class="wp-image-766352" style="width:629px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05022643/image-33-1024x498.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05022643/image-33-300x146.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05022643/image-33-768x373.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05022643/image-33.png 1117w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read This Next: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/25/02/43460681/jim-cramer-says-no-to-bigbear-ai-recommends-buying-this-tech-stock">Jim Cramer Says No To BigBear.ai, Recommends Buying This Tech Stock</a></li>
</ul>

Top Wall Street Forecasters Revamp Arm Holdings Price Expectations Ahead Of Q3 Earnings

Barclays analyst Betty Jiang maintains Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) with a Overweight and lowers the price target from $174 to $171.

Barclays Maintains Overweight on Chevron, Lowers Price Target to $171

AMTM

Amentum shares are trading higher after the company reported better-than-expected Q1 financial results.

CRTO

Criteo shares are trading higher following better-than-expected Q4 reported financial results and an increase in its share buyback authorization program.

William Blair analyst Phillip Blee upgrades Tempur Sealy Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPX#NYSE">TPX</a>) from Market Perform to Outperform.

Upgrades

William Blair Upgrades Tempur Sealy Intl to Outperform

FMC shares are trading lower after RBC Capital downgraded the stock from Outperform to Sector Perform and cut its price target from $78 to $47.

LUCK

Lucky Strike Q2 Sales $300.074M Miss $315.999M Estimate; Company Exits Quarter With Cash And Equivalents Worth $80.755M

B of A Securities analyst Omar Dessouky maintains Electronic Arts (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>) with a Neutral and raises the price target from $130 to $132.

B of A Securities Maintains Neutral on Electronic Arts, Raises Price Target to $132

8&#215;8, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EGHT#NASDAQ">EGHT</a>) reported mixed results for its third <a href="https://www.benzinga.com/quote/eght/earnings">quarter on Tuesday</a>.
The company posted quarterly earnings of 11 cents per share which beat the analyst consensus estimate of 9 cents per share. The company reported quarterly sales of $178.88 million which missed the analyst consensus estimate of $179.26 million.
&#8220;Our third quarter results highlight further progress and continued momentum in our transformation journey. We delivered solid financial performance, with record cash flow from operations and strong adoption of our AI-powered customer experience solutions, driving a 60% year-over-year increase in new products. As we move forward, our focus remains on enhancing customer value, accelerating growth, and driving long-term profitability. With a clear strategy and a strong team, I believe we are well-positioned to capitalize on the opportunities ahead,&#8221; said Samuel Wilson, Chief Executive Officer at 8&#215;8, Inc.
8&#215;8 lowered its FY2025 sales guidance from $714.00 million-727.00 million to $713.00 million-719.00 million.
8&#215;8 shares gained 4.4% to close at $2.84 on Tuesday.
These analysts made changes to their price targets on 8&#215;8 following earnings announcement.
<ul>
<li>Needham analyst Ryan Koontz maintained 8&#215;8 with a Buy and raised the price target from $3 to $3.5.</li>
<li>Barclays analyst Ryan Macwilliams maintained 8&#215;8 with an Equal-Weight and raised the price target from $2.5 to $3.</li>
</ul>
Considering buying EGHT stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="568" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05073541/image-42-1024x568.png" alt="" class="wp-image-766985" style="width:704px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05073541/image-42-1024x568.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05073541/image-42-300x167.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05073541/image-42-768x426.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05073541/image-42.png 1126w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read This Next:<a href="https://www.benzinga.com/trading-ideas/long-ideas/25/02/43460681/jim-cramer-says-no-to-bigbear-ai-recommends-buying-this-tech-stock"> </a>
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/25/02/43460681/jim-cramer-says-no-to-bigbear-ai-recommends-buying-this-tech-stock">Jim Cramer Says No To BigBear.ai, Recommends Buying This Tech Stock</a></li>
</ul>

EGHT

These Analysts Raise Their Forecasts On 8x8 Following Q3 Results

Barclays analyst Michael Leithead maintains Celanese (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CE#NYSE">CE</a>) with a Equal-Weight and lowers the price target from $88 to $75.

Barclays Maintains Equal-Weight on Celanese, Lowers Price Target to $75

ARES

Ares Management shares are trading lower after the company reported Q4 financial results and missed its adjusted EPS and revenue estimates.

Piper Sandler&#8217;s research dated Feb. 4 has revealed a less optimistic outlook for Meta Platforms Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) position in the artificial intelligence race. This comes as its CEO Mark Zuckerberg during Meta&#8217;s fourth-quarter <a href="https://www.benzinga.com/markets/25/01/43326499/mark-zuckerberg-says-chinas-deepseek-did-some-novel-things-were-still-digesting-but-meta-may-keep-pouring-billions-into-ai-infrastructure-anyway">earnings call</a> stated that they are &#8220;still digesting&#8221; some of the &#8220;novel things&#8221; Chinese AI startup <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43382103/experts-say-deepseek-proves-high-performance-ai-possible-without-silicon-valleys-spending">DeepSeek</a> has done.
Analyst Takeaways: The note, based on insights from a data center engineering expert, suggests that while DeepSeek is ahead of Meta&#8217;s latest Llama model, it still lags behind leading AI labs like OpenAI and Anthropic by about six months.
&#8220;In terms of the tricks and methodology applied by DeepSeek, the leading labs such as OpenAI and Anthropic are fully aware of such methodologies and also employ these but such is not the case of Meta which is clearly behind,&#8221; the note added.
The expert also downplayed the significance of DeepSeek&#8217;s reported $5.6 million training run for its R1 model, noting that a comparable run at OpenAI would likely cost around $10 million, making DeepSeek&#8217;s &#8220;cost not so impressive relative to the U.S.&#8221; The note also suggested that OpenAI&#8217;s runs are likely more &#8220;comprehensive&#8221; and &#8220;secure&#8221;.
The Piper Sandler note highlights several key trends in the AI landscape:
<ul>
<li>Increasing Compute Requirements: The demand for compute power is escalating rapidly, especially for inference applications, which are crucial for monetization. This trend is expected to drive significant capital expenditure increases.</li>
</ul>
<ul>
<li>Winners In The Capex Race: Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Taiwan Semiconductor Mfg. Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) are identified as the primary beneficiaries of this capex surge, due to their dominance in graphics processing units and chip manufacturing, respectively.</li>
</ul>
<ul>
<li>Shift Towards Inference: Leading AI labs are predicted to allocate an increasing proportion of their compute resources to inference, potentially reaching 90% in the near future.</li>
</ul>
<ul>
<li>DeepSeek&#8217;s Impact On Capex: DeepSeek&#8217;s cheaper training methods could lead to wider adoption of AI models, further fueling the demand for inference and driving capex.</li>
</ul>
<ul>
<li>Talent Drain At Meta: The report suggests that Meta&#8217;s lag in the AI race may be attributed to &#8220;largely HR related&#8221; issues, including compensation and equity attractiveness compared to competitors like OpenAI.</li>
</ul>
The Analyst: Piper Sandler analysts Harsh V Kumar and Robert Aguanno, who cover the semiconductor sector, have given &#8220;overweight&#8221; ratings to three companies: Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) with a price target of $180, Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) with a price target of $120, and Nvidia with a price target of $175.
See Also: <a href="https://www.benzinga.com/general/market-summary/25/02/43488205/trump-media-technology-trading-volume-falls-amid-expensive-valuations-and-bearish-charts-heres-what-technical-analysis-for-djt-stock-shows">Trump Media &amp; Technology Trading Volume Falls Amid Expensive Valuations And Bearish Charts: Here&#8217;s What Technical Analysis For DJT Stock Shows</a>
Why It Matters: The Piper Sandler report is bullish on Nvidia with respect to AI sector tailwinds, &#8220;a 50/50 split between training and inference applications&#8221; and custom application-specific integrated circuits (ASICs) for increased efficiency. However, it expresses less optimism about AMD, citing their lag in software development and continuous loss of talent to competitors.
While Zuckerberg&#8217;s comments on DeepSeek suggest a cautious approach to evaluating DeepSeek&#8217;s advancements, the Piper Sandler analysis paints a more concerning picture for Meta, indicating that the company has significant ground to make up in the rapidly evolving AI landscape.
See Also: <a href="https://www.benzinga.com/25/02/43488561/pepsico-responds-to-health-driven-demand-with-lays-cheetos-and-doritos-brand-owner-frito-lay-overhaul">PepsiCo Revamps Lays, Cheetos, And Doritos Maker Frito Lay As North American Sales Take A Hit, Shifts Focus To Health-Conscious Customers</a>
Price Action: Shares of Meta were down 0.36% in premarket, whereas the exchange-traded fund tracking the Nasdaq 100 index, Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) declined 0.80%. Meta is up 17.51% on a year-to-date basis and 53.28% over the last year.
The average price target among 43 analysts <a href="https://www.benzinga.com/quote/META/analyst-ratings">tracked by Benzinga</a> is $724.86 with a ‘buy' rating. The estimates range from $575 to $875 apiece. Recent ratings from RBC UBS, Citigroup, and Oppenheimer suggest a $788.67 target, implying a potential upside of 12.40%.
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/quote/META/analyst-ratings"><img loading="lazy" decoding="async" width="1024" height="377" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05063632/Meta-Anr-1024x377.png" alt="" class="wp-image-766882" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05063632/Meta-Anr-1024x377.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05063632/Meta-Anr-300x110.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05063632/Meta-Anr-768x283.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05063632/Meta-Anr.png 1059w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/02/43487630/trump-media-or-trump-coin-where-have-investors-lost-more-money-since-the-47th-president-entered-the-white-house" target="_blank" rel="noreferrer noopener">Trump Media or Trump Coin: Where Have Investors Lost More Money Since the 47th President Entered the White House?</a></li>
</ul>
Photo courtesy: Shutterstock

Comments

LawFinance

LawFinance (JKLPF) Options

No option chain data available. Please try again later

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga